How to Start a Medical Practice in New York
Step 1: Obtain a Certificate of Authority
In order to establish a medical practice in New York, one must first obtain a Certificate of Authority. The NYS Department of Education, Office of the Professions will issue a Certificate of Authority upon receiving the proposed legal formation documents, license information of the practitioner, filing fees, and other legal documents depending on the circumstances.
Step 2: Form a Professional Business Entity
Most clients in the medical field choose to form a PLLC business entity (Professional Service Limited Liability Company). This is a great option for solo practitioners or partners starting a small medical office in New York. Other options include a PC (Professional Service Corporation) or LLP (Limited Liability Partnership) although these options are not as popular in my experience.
Setting up a PLLC provides the owners many benefits, namely, limited liability protection and protection of personal assets. Note, that professionals can’t form a regular LLC or Corporation; the New York Department of State requires that the company’s organizational documents are compliant for professional service companies and must be accompanied by a Certificate of Authorization issued by the New York State Department of Education, Office of the Professions.
The name of the new practice must conform with the naming restrictions implemented by the New York State Education Department. We do a name a clearance search in advance of every formation project make to sure that the name is available for registration and compliant with their restricted words and phrases. The name of the company must also accurately describe the professional’s practice and certain documentation may be required if any specialty certifications are held by the Members.
Step 3: Open a Bank Account
Once your entity is established you’ll need an EIN number (Employer Identification Number) to open a business bank account. These are also referred to as a Tax ID Number and are issued by the IRS. We include these as part of our professional practice formation services.
Step 4: Open Your Business
Once the company is legally established you can secure malpractice insurance, hire staff, sign a commercial lease and hang your shingle. If you’re interested in starting your own medical office contact us for a free phone consultation. We specialize in working with Physicians, Mental Health Practitioners, Registered Nurses, Nurse Practitioners and other health care professionals in New York.