How do a create a professional association for doctors in Texas?

If you are a doctor and want to form a professional association with other doctors who share your specialty or practice area, you may wonder how to go about it.

Before you can form a professional association, you need to make sure that you and your prospective members meet the eligibility criteria set by the Texas Business Organizations Code. According to the BOC, all the owners and managers must have the same professional licenses.

Exceptions

There are some exceptions to this rule. If the different licensed professionals perform services that are within the scope of those practitioners, then they may fall into an exemption.

Choose a name

Once you have verified that you and your prospective members are eligible to form a professional association, you need to choose a name for your entity. Chapter 5 of the BOC requires that your entity name be unique.

The name of your professional association must also include an organizational designation that indicates its status as a professional entity. The BOC provides three options for this designation: Professional Association, P.A. and P.C.

You can check the availability of your desired name by using the SOSDirect online system. You can also reserve your name for up to 120 days by filing an application for reservation or renewal of an entity name (Form 501) with the Secretary of State and paying a $40 fee.

File a certificate of formation

The next step is to file a certificate of formation with the Secretary of State. This is the document that officially creates your professional association and sets forth its basic information and structure. The certificate of formation must comply with Title 1, Chapter 3, Subchapter A of the BOC.