Building a Group Practice Nursing Business
Nurses are indispensable to healthcare in the United States. The more than 525,000 actively practicing registered nurses (RNs) in our state work hard to ensure patients get proper care (California Board of Registered Nursing).
If you are a registered nurse considering building a business, it is crucial that you put the proper structure in place. These ideas from a Fremont, CA business attorney provides a comprehensive overview of the key things to know about building a group nursing practice in California.
Select the Appropriate Entity for Your Group Nursing Practice
The California Nursing Practices Act is a set of state laws/regulations that govern nursing. It outlines the process for licensure, the scope of practice, and even disciplinary procedures. California’s corporate law also regulates nursing practices. You will need to select your legal entity when building a practice. For most group practices in nursing, the best option is:
- Professional nursing corporation: A professional nursing corporation is a legal entity structured under state law that allows registered nurses to offer nursing services through a corporate organization. There are many advantages to forming a professional nursing corporation, including tax advantages and liability protection.
A note on California law: There are strict requirements regarding professional nursing corporations in California. While several different licensed medical professionals may have an ownership stake. a registered nurse(s) must own at least 51 percent of the business.
What You Need to Do to Build a Group Nursing Practice in California
As with any other type of business in the health care industry, a nursing practice needs a strong foundation. Here are some key things to do when building your group nursing practice in California:
- Select a name (naming convention): You need to select a name that meets state naming conventions. Both the official and the DBA name should have “nursing” in it.
- Negotiate ownership and structure: Negotiating ownership and structure is another major step. Along with other things, it typically involves deciding who the shareholders will be, determining the percentage of ownership, and structuring the company in a way that both meets California legal requirements and the needs of the parties.
- File articles of incorporation: Filing articles of incorporation with the California Secretary of State is necessary to legally establish your professional nursing corporation. The document outlines basic information about the corporation, including its name, purpose, the agent for service of process, and the initial directors.
- Develop corporate bylaws: Corporate bylaws are the internal rules that govern the corporation’s operations, including the roles and responsibilities of the directors and officers, meeting protocols, and procedures for making major business decisions.
Building a successful nursing practice is complicated. Do not try to figure everything out alone. An experienced business attorney can help you protect your individual interests and put the best business structure in place.
Get Help from a California Business Lawyer for Nursing Practices
Lynnette Ariathurai is a business attorney experienced in medical practice structures. If you have any questions about building a group nursing practice, she can help. Contact Ms. Ariathurai today for a confidential consultation. From her Fremont office, we provide business services to group nursing practices throughout the Bay Area.
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