LLC for physicians

Forming a Limited Liability Company for Medical Professionals in Connecticut

Which Medical Professionals Can Form a Limited Liability Company In Connecticut?

Forming a CT LLC for the Purposes of Rendering Medical Services

In Connecticut, the Limited Liability Company Act governs the way in which an LLC is formed and for which purposes an LLC may be formed. In most ways, forming an LLC for the purposes of rendering professional services, or services for which a State issued license is needed, is identical to forming an LLC for any other business purpose.

However, an LLC may be formed to render professional services ONLY IF each member (co-owner) of the LLC is licensed or authorized as a member of that profession, the LLC will only render those specific kinds of professional services and those services ancillary to that purpose, and only licensed professionals shall render those professional services.

There Are Exceptions

The Limited Liability Company Act allows for certain medical professionals to form LLC’s together even though they hold different licenses.

  • Psychologists, martial and family therapists, social workers, nurses and psychiatrists can form LLC’s together;
  • Physicians and Surgeons, occupational therapists, social workers and alcohol and drug counselors can form LLC’s together;
  • Physicians and Surgeons, and Chiropractors can form LLC’s together;

Medical Professionals can also form LLC’s together regardless of their licensing status if the LLC is not providing medical services.

What are the Consequences of Forming an “Illegal LLC”

Forming an “illegal llc”, or one that is not in compliance with the laws of the State of Connecticut, can lead to many issues, starting with forced dissolution and/or treatment as a general partnership for tax or liability purposes. This means that if you form an illegal LLC you will not be afforded the liability limiting protections had you properly formed the LLC to begin with.

If you are just forming your medical practice in Connecticut and are considering using a Limited Liability Company for your organizational structure, you should hire a Connecticut business attorney to assist in the drafting of your documents and filing of your LLC. Doing things correctly from the beginning can save business owners a lot of time, money and stress and will add to the overall health and success of the business. If you have already formed your LLC but are not sure if you are compliant with the laws of the state of Connecticut, you should contact a Connecticut business lawyer immediately to review your documents and resolve any flaws before they become problems.

business partner dispute resolution

Importance of Agreements Between Business Founders

A Properly Drafted Business Agreement Can Add Health to Your Company

Agreements Between Business Founders

When beginning a new business venture, most entrepreneurs have a handle of the importance of properly forming a business in terms of selecting a business structure such as a partnership, a limited liability company or a corporation, and filing with the State to gain legal existence.

A much smaller group understand the importance of having a partnership agreement, operating agreement or shareholder agreement between company founders. I have seen a few situations where the lack of such an agreement has caused struggle between business founders, even leading to failure of that business.

Business founders need to budget some cost for a basic agreement to document terms such as ownership structure and rights, voting and decision-making rights, management responsibilities, and buy/sell provisions or rights of first refusal when one founder decides to make an exist, among many others. Having a well drafted agreement that brings up major points the business founders have not even consider is very important and can save a lot of time and money in the long run.

An agreement is no guarantee of business success or that issues between founders will not arise. However, having an agreement in place that is specific and decisive can squash many smaller issues before they grow into bigger problems.