If you’re thinking about striking out on your own, you should know that there are attorneys close by that can help you set up your business in a way that will keep you in compliance with the State of Texas. Below are a few basic requirements for your review. If you have questions after reading, call us at (214) 242-6444. We’d love to visit with you!
It’s necessary for most anyone who plans to incorporate here in Texas to name both a governing person and owner for their business. It’s also important for that entity to appoint certain individuals to different officer roles as well. Some restrictions exist for selecting these depending on whether it’s a Professional Association (PA), Professional Limited Liability Company (PLLC) or a Professional Corporation (PC).
The Texas Business Organizations Code (BOC) § 301.003 specifies how a PA must be both owned and governed by a professional individual. While a veterinarian, mental health professional, a dentist, optometrist, an osteopathic or medical doctor or chiropractor fit in this category, a physician assistant who joins a physician’s practice may be exempt from this rule. State BOC also requires that the president of this type of corporation is both a governing person and a member of the PA.
PLLCs and PCs must each be owned by professional organizations or individuals. Either a group or a single person may govern a PLLC, but a PC must be governed by a professional individual alone, though a single person may take on multiple roles, such as secretary, shareholder, president and director. All officers of both PLLCs and PCs must be professional individuals who are licensed and employed in the business entity’s field of work.
Though there are no current state law restrictions restricting individuals less than 18 years old from becoming a Texas business entity’s director, owner or officer, corporations can specify age restrictions in their formation documents. Additionally, minors may be prohibited by federal or local statutes from becoming employed in certain sectors.
If you are a medical professional, deciding what type of business entity is right for you isn’t easy. In addition to some of the concepts above, there are liability and tax implications associated with your choice of entities. Though the ultimate decision is yours, our Dallas-based attorneys can help you think through the process and provide guidance on your choice of entities. More questions? Call us at (214) 242-6444.