Forming a professional association for doctors in Texas

Medicine is different from other professions in many ways. That said, going into practice as a doctor is in some ways the same as opening any other kind of business. Do it right and you set up a practice that will take care of your patients and earn you a living with minimal hassle. Do it wrong and it can go very wrong indeed.

When entrepreneurs launch a new business in technology or any other industry, they go through the process of business formation. This involves choosing a business form, such as a partnership, an LLC or a corporation. They must file the appropriate paperwork, sign any required agreements and pay any required fees. With the right format. they prepare their business for growth, while also protecting themselves as much as they can from personal liability for debts incurred by the business.

Do it right

When lawyers decide to join forces for a law firm, they go through a somewhat similar process. They must draft and sign partnership agreements and choose an LLC or other business form. For doctors, under Texas law, the appropriate business form is typically a professional association.

Starting a professional association requires filing paperwork with the Texas secretary of state. But there’s a lot more involved if you want to do it right.

Like any business, a professional organization needs contracts, including contracts for vendors, employees and real estate. Professional associations also need agreements between the partners about how to grow and how to handle disputes between them. If the organization needs to merge with another association, or if it needs any other major changes, it will also need to sort out complex legal issues.

To handle these issues, doctors need help from lawyers who are experienced in health care law, and specifically in the law of professional associations.