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How can we create a professional medical corporation in Louisiana?

How can we create a professional medical corporation in Louisiana?

Q: Can a nonprofit be called a corporation?

Yes, a nonprofit can be referred to as a corporation if it has been formally incorporated under state law. This designation means it has met specific legal requirements and is recognized as a separate legal entity, which can enter contracts, own property, and be liable independently from its members.

Full question:

We are a Non-Profit Community Health Center and we plan to buyout a local pediatric practice. What documents need to be prepared and/or filed of record?

Category: Corporations
Subcategory: Professional Corporation
Date: 04/07/2025
State: Louisiana

Answer:

In Louisiana, a business corporation may be formed in compliance with the laws governing several types of professions. The professional corporations generally are limited to their particular type of business, and may hold property for investment or in connection with their practice. The following professional corporations must contain the full or last name or names of one or more voting shareholders, former voting shareholders or members of a predecessor firm: law, dental, accounting, chiropractic, nursing and optometry. The following professional corporation names may comply with the above, or may consist of any name approved by the Secretary of State: medical, architectural, psychology, veterinary, architectural-engineering, occupational therapy, and social work . With the exception of architectural-engineering, all professional corporation names must end with a 'professional' ending.

If the non-profit entity was registered with the state, it may be necessary to withdraw or dissolve that entity before creating a new professional corporation.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

Is a non-stock corporation the same as a non-profit?

Yes, a non-stock corporation is often synonymous with a non-profit corporation. Both types of entities are organized for purposes other than generating profit for owners or shareholders. Instead, any surplus revenue is reinvested into the organization's mission. However, non-stock corporations typically do not issue shares, while non-profit corporations may have a structure that allows for membership without stock ownership.

What is a disadvantage of a nonprofit corporation?

One disadvantage of a nonprofit corporation is the limited ability to raise capital. Nonprofits cannot issue stock to attract investors, which can restrict funding options. Additionally, they must adhere to strict regulations and reporting requirements to maintain their tax-exempt status, which can be burdensome and time-consuming.

What is the difference between a non-profit organization and a nonprofit corporation?

The primary difference lies in their legal status. A nonprofit organization is a broad term that refers to any group organized for a charitable purpose, while a nonprofit corporation is a specific legal entity recognized by the state. Nonprofit corporations have formal structures and are subject to state laws, while informal nonprofit organizations may not have such legal recognition.

Can a nonprofit be called a corporation?

What is the difference between a non-profit organization and a non-stock corporation?

A non-profit organization is a general term for any entity organized for a purpose other than profit, while a non-stock corporation is a specific type of nonprofit that does not issue shares. Non-stock corporations often have members instead of shareholders, and they operate under specific state regulations governing their formation and operation.