California occupational therapists who practice occupational 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, an Occupational Therapy Corporation is formed by filing articles of incorporation with the California Secretary of State.

It is often better to form an Occupational 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 Occupational 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 Occupational Therapy Corporation, or whether an Occupational Therapy Corporation is the best entity type for your situation, reach out to the trusted corporate attorneys experienced in working with occupational therapists.

When forming a Professional Occupational 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 Occupational Therapy Corporation. Likewise, there are limitations on who may be on the board of directors and who may serve as senior management. A Professional Occupational 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 occupational therapists and must collectively hold 49% or less of the shares are as follows:

California Professional Occupational Therapy Corporation:

Licensed physicians and surgeons

Licensed doctors of podiatric medicine

Licensed acupuncturists

Naturopathic doctors

Licensed physical therapists

Licensed speech-language therapists

Licensed audiologists

Registered nurses

Licensed psychologists

Licensed physician assistants

Licensed midwives

Licensed clinical social workers

Licensed marriage and family therapists

Licensed occupational therapy assistants

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 occupational 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 Occupational Therapy Corporation is set up correctly and can assist with the annual maintenance of your California Professional Occupational Therapy Corporation. San Diego Corporate Law provides a host of legal services for businesses including formation of other types of corporate entities.