Beaumont, CA asked in Contracts, Business Formation, Health Care Law and Mergers & Acquisitions for California

Q: How do you ensure equal profit and sharing of profit of a PC and an aesthetician? Are there options to allow this In CA

Trying to form a corporation in CA with a medical director owning majority shadows but not working, a PA doing all fillers and Botox and the goal is to allow the esthetician to profit share or share hold to ensure equality. She is bringing in the majority of patients (over 300) and if we expand and open more offices and eventually sell then we want the esthetician to hold equal rights to profits

1 Lawyer Answer
Joseph Franklin Klatt
Joseph Franklin Klatt
  • La Jolla, CA
  • Licensed in California

A: You need to speak to a lawyer in person about this, because this can't be addressed in a simple Q&A format. The big problem here is that there are rules that govern doctors and how they can form medical partnerships. There may be a way of accomplishing your objectives, but it may need to take a different form than you are anticipating. The MD and the PA could face significant problems with their licenses if this is done the wrong way. The MD and the PA also need to make sure that they are meeting the proper professional standards for supervising medical and quasi-medical procedures. Just putting a name on the letterhead is not enough.

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