Who can be a shareholder/Officer/Director in a NATUROPATHIC PROFESSIONAL CORPORATION?
A Naturopathic Doctor Corporation is a professional corporation which is formally recognized and designed to offer services as Naturopathic doctor by the Naturopathic Medicine Committee of California. Practicing as a professional California Naturopathic physician corporation may offer many unique benefits over the practice as a single owner or partnership. In California, professional Naturopathic medicinal practices may only function under the Moscone-Knox Professional Corporation Act by establishing a California professional Naturopathic doctor corporation. All professional corporations in San Diego, California must adhere to the norms and regulations laid forth by their respective administrative offices. The Naturopathic Professional Corporations are governed under the Naturopathic Doctors Act by California’s Naturopathic Medicine Committee.
The distinct advantage of forming a Naturopathic professional corporation includes:
- It limits personal responsibility to creditors and legal proceedings (save for specific allegations of wrongful conduct);
- It helps to obtain corporate credit without personal guarantees.
- It helps to reduce taxes on self-employment for wage-earning shareholders.
- It can assist in passing earnings and losses to shareholders, thus avoiding double taxation.
- It also leads to the availability of fringe benefits, such as healthcare and retirement benefits.
Before forming a Naturopathic doctor corporation, it is important to understand the specific requirements regarding naming your entity. Article 7, section 3674 of the California Business and Professional Code states “the name of a Naturopathic corporation and any name or names under which it may render professional services, shall contain the words “Naturopathic” or “Naturopathic doctor” and, as appropriate, wording or abbreviations denoting its status as a corporation”.
As per the law in California only the licensed professionals who are granted equity for a Naturopathic professional company can serve as director, chairman, vice-president, secretary, and treasurer in the company. These positions depend on the number of owners of the Naturopathic physician company.
For example, if a Naturopathic business has just one shareholder, that company simply requires one manager. The same shareholder may play the position of manager and act as chairman and treasurer. If a Naturopathic business only has two shareholders, then the two may be the company’s Directors. They may also occupy the positions of chairman, vice-chairman, secretary, and treasurer.
In addition to Naturopathic Doctors, the code also permits certain allied professions to be shareholders within a Naturopathic corporation. This is a list of allied licensed professionals who are qualified to own stocks and hold the positions of a shareholder, officer or director in a Naturopathic corporation in San Diego:
- Doctors and surgeons.
- Licensed Psychologists.
- Licensed nurses.
- Licensed Acupuncturists.
- Licensed Physical therapists.
- Licensed Family therapists and licensed marital therapists.
- Licensed Clinical social workers.
- Licensed Optometrists.
- Licensed Professional clinical counselors.
- Licensed assistant physician.
- Licensed Chiropractors.
- Licensed podiatric medicine physicians.
Please note that the sum of all the shares held by these allied professions in the Naturopathic corporation may not be more than 49% of the total number of Naturopathic Doctor Corporation shares. In addition, the number of individuals from allied professions listed above, must not exceed the number of people legally licensed as Naturopathic Doctors.
A professional Naturopathic corporation may determine the way in which its directors, powers, responsibilities, and pay are chosen and removed in its articles or bylaws. No more than three years may be allowed for each term of office.
In San Diego creation of a professional Naturopathic or Medical Corporation under California’s laws might appear like a complex procedure, but at the end may provide other benefits. One should focus on streamlining and simplifying the process and setting it up. San Diego Naturopathic and Medical business lawyers have the expertise and experience to guarantee that all business paperwork is compliant and correctly filed so you can focus on growing your Naturopathic business. Feel free to call Law Office of Kris Mukherji to assist with your Naturopathic and Medical Business Law needs in San Diego today, and see how we can help you.