California physical therapists who practice physical therapy are permitted to form professional corporations here in California. The statutory authority is set forth in the Moscone-Knox Professional Corporation Act (the “Moscone-Knox Act”). See Cal. Corp. Code, §13400 et seq. Like all types of corporate entities, a Physical Therapy Corporation is formed by filing articles of incorporation with the California Secretary of State.

It is often better to form a Physical Therapy Corporation than to operate a practice as a sole proprietorship. The corporate form protects personal assets from being seized by business creditors and creating a California Professional Physical Therapy Corporation greatly facilitates adding licensed partners to a practice. The corporate form shields each of the partners from liability that may be alleged against the other(s). If you have questions about the requirements of forming a Professional Physical Therapy Corporation, or whether a Physical Therapy Corporation is the best entity type for your situation, reach out to the trusted corporate attorneys experienced in working with physical therapists.

Pursuant to California law, a Professional Physical Therapy Corporation has certain naming requirements that must be met when the corporation is formed. These name options include:

Physical Therapy: 2693. “The name of a physical therapy corporation and any name or names under which it may render professional services shall contain the words “physical therapy” or “physical therapist”, and wording or abbreviations denoting corporate existence.”

Consult with the experienced San Diego corporate attorneys to ensure that the name you want for your Professional Physical Therapy Corporation is compliant.

When forming a Professional Physical Therapy Corporation, retain an experienced San Diego corporate attorney to provide advice and assistance. There are special rules under the Moscone-Knox Act with respect to who may be shareholders — owners — in a Professional Physical Therapy Corporation. Likewise, there are limitations on who may be on the board of directors and who may serve as senior management. A Professional Physical Therapy Corporation is unique in this way.

The permitted shareholders, who may also serve as officers and directors, but who may not be greater in number than the physical therapists and must collectively hold 49% or less of the shares are as follows:

Physical therapy corporations:

Licensed physicians and surgeons;
Licensed doctors of podiatric medicine;
Licensed acupuncturists;
Naturopathic doctors;
Licensed occupational therapists;
Licensed speech-language therapists;
Licensed audiologists;
Registered nurses;
Licensed psychologists;
Licensed physician assistants; and
Licensed Midwives.

The corporation may have employees — such as a receptionist or a book-keeper — who are not licensed as long as those employees are not providing any sort of professional physical therapy services.

Contact San Diego Corporate Law Today

For more information, contact attorney Michael J. Leonard, Esq., or Christina Gandy-Delgadillo, Esq., of San Diego Corporate Law. Michael and Christina can be reached at (858) 483-9200 or via email. These experienced corporate attorneys can ensure your Professional Physical Therapy Corporation is set up correctly and can assist with the annual maintenance of your California Professional Physical Therapy Corporation. San Diego Corporate Law provides a host of legal services for businesses including formation of other types of corporate entities.