California osteopaths who practice osteopathic medicine 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 Osteopathy Corporation is formed by filing articles of incorporation with the California Secretary of State.

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

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

Osteopathy: CA 16 CCR Section 1676

• Any Fictitious name shall contain the designation “medical group”, “medical clinic”, “medical corporation”, “medical associates”, “medical center”, or “medical office”. Such designation shall be contiguous in the name style and not separated by intervening words. This requirement also applies to those applicants who are sole practitioners.
• A group or clinic containing both a corporate and non-corporate entity or a partnership of corporations shall not use wording or abbreviations denoting corporate existence. When a professional corporation is an applicant, it shall use in its fictitious name style one of the word(s) or abbreviations denoting corporate existence as required by these regulations.
• The Board shall not issue a fictitious name permit for a name style which is false or misleading or which is so similar to a name previously authorized in the same geographical area as to be deceptive, misleading, or subject an individual consumer to confusion with a previously permitted fictitious name.
• The use of word(s) or abbreviation(s) following a licensed person’s name denoting affiliation with a professional medical society or association shall not create a fictitious name; however, the use of any word(s) or abbreviation(s) which denotes a particular specialty in medical practice which is advertised or disseminated in public.

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

When forming a Professional Osteopathy 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 Osteopathy Corporation. Likewise, there are limitations on who may be on the board of directors and who may serve as senior management. A Professional Osteopathy Corporation is unique in this way.

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