Full question:
Is there any way a non-physician professional can become the sole shareholder/owner of a physician professional corporation and then employ a physician to render patient services?
- Category: Corporations
- Subcategory: Professional Corporation
- Date:
- State: New Jersey
Answer:
In New Jersey, only individuals who are licensed or legally authorized to provide the same or closely related professional services can organize and become shareholders of a professional corporation. This means a non-physician cannot be the sole shareholder of a physician professional corporation. The law requires that professional services be rendered only through licensed individuals.
According to NJ statutes, specifically 14A:17-5, one or more licensed individuals can create a professional corporation for profit, but all shareholders must be licensed to provide the service the corporation offers. Additionally, under 14A:17-10, shares cannot be issued to anyone other than a licensed individual in the relevant profession.
Furthermore, 14A:17-7 states that a professional corporation can only provide services through its licensed officers, employees, and agents. Non-licensed individuals, such as clerks or administrators, do not count as employees who can render professional services.
In summary, a non-physician cannot own a physician professional corporation in New Jersey and employ a physician to provide patient services.
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.