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Professional licensingMedical practice entities are heavily regulated. PLLC or PC required. Ownership typically restricted to licensed physicians. CPOM doctrine prohibits unauthorized corporate ownership.
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Medical Practice Licensing · File.Business

Medical practice licensing. Physician practice entity.

Medical practices must form Professional LLC or Professional Corporation in most states. Ownership restricted to licensed physicians (or under specific arrangements). Corporate practice of medicine doctrine restricts certain ownership models.

Key facts

Start here.

Key fact
Entity options

PLLC, Professional Corporation, Partnership.

Key fact
CPOM doctrine

Corporate Practice of Medicine prohibits corporate ownership of medical practice in many states.

Key fact
Physician ownership

Most states require licensed physicians to own the practice.

Key fact
Telemedicine

Telemedicine licensing varies by state. May require multi-state licensure.

Key fact
HIPAA

Federal HIPAA compliance required. BAAs with vendors.

In depth

The full picture.

01

Entity options

Professional LLC (PLLC) most common for new practices. Professional Corporation (PC) historical and continues. Partnership for group practices. Some states permit limited corporate structures with specific exemptions.

02

CPOM doctrine

Corporate Practice of Medicine prohibits non-physicians from owning or controlling medical practices in many states. Exception jurisdictions: Arizona, Colorado, Maine, Maryland, Nebraska, Tennessee, Utah. Other states maintain strict CPOM. Workarounds: MSO (Management Services Organization) structure with operations company separate from clinical entity.

03

Ownership restrictions

Most states require all owners to be licensed physicians in the practice state. Some states allow other healthcare professionals (PAs, NPs) limited ownership stakes. Most prohibit lay (non-physician) ownership.

04

Designated medical director

Most practices have designated medical director responsible for clinical operations and compliance.

05

State medical board

Each state has a medical board overseeing physician licensure and practice. Annual fees, license renewals, continuing medical education (CME).

06

HIPAA compliance

Federal HIPAA Privacy and Security Rules. Business Associate Agreements (BAAs) with all vendors handling PHI. Annual training. Risk assessments.

07

Multi-state telemedicine

Telemedicine across state lines typically requires physician licensure in patient state. Multi-state licensure expensive. Interstate Medical Licensure Compact (IMLC) facilitates simplified multi-state licensing for IMLC member states.

08

Payer enrollment

Separate enrollment with each payer (Medicare, Medicaid, commercial insurance). NPI (National Provider Identifier) required.

09

Continuing requirements

Annual practice license renewal; individual physician license renewal; CME; payer revalidation; audits.

FAQ

Common questions.

Can I use a standard LLC for my medical practice?
Generally no. Most states require PLLC or PC.
What is CPOM?
Corporate Practice of Medicine doctrine. Prohibits non-physician ownership in many states.
What is an MSO?
Management Services Organization. Provides administrative services to medical practices. Used as a workaround in CPOM states.
Can a non-physician own equity?
Generally no in CPOM states.
What is the IMLC?
Interstate Medical Licensure Compact. simplifies multi-state licensure for member states.
Telemedicine licensing?
Required in patient state. IMLC helps for member states.
HIPAA required?
Yes, federal mandate.
NPI?
National Provider Identifier. Required for billing.

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Professional licensing is handled by state boards. File.Business handles entity formation and ongoing compliance.

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1

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2

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Our specialists draft the filing, verify entity details against state databases, run internal QA, and route any items needing your sign-off. You see drafts before anything gets submitted.

3

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4

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