Professions cannot insulate themselves with a corporate shield to guard against malpractice. So those individuals must have unique professional entities that provide some of the liability protection of a corporate entity. The primary purpose why professions choose to form a professional association is that, unlike a general partnership, an owner is not personally liable for the negligence or malpractice of other owners.
The professional association is the most popular entity choice for physicians in Texas. But this is primarily due to inertia. Other entity choices exist that should be examined because they may provide benefits unavailable in a professional association. A professional association or “PA” is the most limiting kind of entity. Only certain healthcare professionals may operate a PA. The exclusive list includes medical doctors, doctors of osteopathy, podiatrists, dentists, chiropractors, optometrists, and therapeutic optometrists, veterinarians, and licensed mental health professionals. Only individuals authorized by the State of Texas may operate in a PA. Only physicians licensed by the Texas Medical Board can own a PA that engages in medical practice.
Its members own a professional association. The members hold shares, but they are not referred to as “shareholders.” This somewhat confusing terminology reveals the exceptional care required when creating a professional association. Like a corporation, the members adopt bylaws for governing the internal affairs of the PA. A board of directors or executive committee PA governs the PA by the election of the members. The board or executive committee elects officers, which must include a president and secretary. All officers and all members of the board or executive committee must also be members of the PA, and the president of a PA must also be a member of the board or executive committee.
You should contact a business lawyer who understands the complications of a PA if you are interested in forming a professional association. Dunnam & Dunnam has the experience to advise healthcare professionals in the operation and creation of professional associations in Waco, Texas. Call us at 254-753-6437 to schedule a consultation with a business lawyer in Waco.
Carolina G. Truesdale graduated from Texas Tech University School of Law, Cum Laude, where she discovered her passion for serving families during difficult times.
Mason Dunnam won his first jury trial the day after becoming licensed to practice law. He became a lawyer to fight for the little guy.
Eleeza Johnson has been a member of Dunnam & Dunnam since 2015 and is currently designated as Of Counsel.
Andrea Michelle Mehta became a lawyer to help people navigate the legal world. She loves her work and the people.
Gerald Ray Villarrial has an important goal – to be remembered as someone who cared about people and changed lives through his skill as an attorney.
Jim Dunnam is a Board Certified Specialist in both Civil Trial Law and Family Law. Jim was born and has spent his entire life in Waco.
Merrilee Harmon is a Family Law specialist, Board Certified by the Texas Board of Legal Specialization since 1985.
Vance Dunnam, Jr. graduated from Baylor University in 1974 with a Bachelor of Business Administration degree and a major in accounting and from Baylor Law School in 1977 with a Juris Doctor degree.
Vance Dunnam has 60 years of experience as a lawyer in Waco, Texas, handling all types of cases in both the office and the courtroom.
Copyright © Dunnam & Dunnam, L.L.P. All Rights Reserved. Prior results do not guarantee a similar outcome. Dunnam & Dunnam LLP maintains this website to provide you with general information concerning itself and its attorneys, as well as to facilitate communications with persons and entities possibly desiring to establish an attorney-client relationship with a law firm or an attorney. Information provided by and through this website does not create any kind of attorney-client relationship with Dunnam & Dunnam or any of its attorneys and, furthermore, does not constitute and should not to be relied upon by you as any kind of legal advice or service by Dunnam & Dunnam or any of its attorneys. Dunnam & Dunnam L.L.P. assumes no liability for the use or interpretation of information contained herein. This publication is provided “AS IS” WITHOUT WARRANTY OF ANY KIND, EITHER EXPRESSED OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR NON-INFRINGEMENT.
