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General questions
What is a professional corporation, association or limited liability company?
Professional Corporation/Association
A professional corporation/association (PC/PA) is a corporation which provides a professional licensed service to the public. The PC/PA must be registered with the licensing board that regulates the professional service to be provided. Please visit the NC Secretary of State’s website for more information about professional corporations.
Professional Limited Liability Company
A professional limited liability company (PLLC) is a business organization permitted to be established under North Carolina law and is owned by members (rather than shareholders of a corporation) and managed by managers (rather than officers and directors of a corporation). NC General Statute 57C-2-01(c) permits a professional limited liability company to render professional services to the same extent as a professional corporation established under NC General Statute 55B. Please visit the NC Secretary of State’s website for more information on professional limited liability companies.
Who can form a professional corporation, association or limited liability company?
A licensed physician and/or physician assistant may form a professional corporation, association or limited liability company as a sole shareholder/member or can incorporate/organize with other physicians or physician assistants to provide medical services. NCGS 55B-14 (a) A professional corporation shall render only one specific type professional service, and such services as may be ancillary thereto, and shall not engage in any other business or profession; provided, however, such corporation may own real and personal property necessary or appropriate for rendering the type of professional services it was organized to render and it may invest in real estate, mortgages, stocks, bonds, and any other type of investments.
Where can I find information on how to register a professional corporation, association or limited liability company and the requirements to maintain the registration?
On the NCMB website, visit the section for ‘Licensing’ and choose the link to either corporations or limited liability companies.
Are there any limitations on ownership/membership of capital stock in a professional corporation, association or limited liability company?
Yes. Shares of capital stock or membership may only be held by a licensee, as defined in NC General Statute 55B-2(2). A “licensee” means any natural person who is duly licensed by the appropriate licensing board to render the same professional services which will be rendered by the professional corporation of which he/she is, or intends to become, an officer, director, shareholder or employee.
If I plan to offer more than one type of professional service, should I obtain a certificate of registration for each allowable combination of professional services?
Yes. If more than one type of professional service is rendered, a certificate of registration must be obtained from the respective professional licensing boards for each professional service provided by a professional corporation or limited liability company.
My PC/PLLC has been suspended, can I go to my Licensee Gateway Page and click on Corp/PLLC Application to renew my suspended corporation?
No, once a PC/PLLC has been suspended by the Board the PC/PLLC display is no longer visible on your Gateway Page. Using the Corp/PLLC Application option on your Gateway Page will result in creating a duplicate of your existing corporation, not renewing it. If you have a suspended PC/PLLC you must email .(JavaScript must be enabled to view this email address) and request the PC/PLLC be set up for reinstatement.
Should I notify the NC Medical Board if I sell my practice or merge with another business?
Yes. In compliance with NCGS 55B, you must obtain prior approval from the NC Medical Board if you change ownership of a professional corporation, association or limited liability company registered with the Board.
Physician Assistant Practice Ownership
May a physician assistant own their own practice?
Yes. A licensed physician assistant may form their own practice to render the professional service they are licensed to provide. For more information, read this article.
Can a physician assistant establish a practice (professional corporation or limited liability company) with a physician, yet the PA owns a majority of the stock or membership?
Yes. PAs and physicians may jointly own stock in professional corporations. There is no requirement that shares of stock be allotted in a certain manner.
Can a physician assistant own 100 percent of a practice (professional corporation or limited liability company) and hire physicians as employees or independent contractors to practice medicine?
No. Practices owned solely by PAs may not hire or contract with physicians to practice medicine on behalf of the PA owned practices.
Can a Physician Assistant and a Nurse Practitioner own a professional entity together?
No, NC General Statute 55B-14 (a) and (c) do not allow for PA licensees of the NC Medical Board and NP licensees of the NC Board of Nursing to own a professional entity together.
