> ## Documentation Index
> Fetch the complete documentation index at: https://www.practiceownersguide.com/llms.txt
> Use this file to discover all available pages before exploring further.

# The PC and corporate practice of medicine

> The short version of a doctrine with its own wiki — why most states require your practice entity to be a licensee-owned PC or PLLC, and when the MSO question arrives.

The short version of a doctrine with its own wiki. For depth (friendly-PC structures, state rules, MSO agreements), go to the [MSO-PC Wiki](https://mso.getlemma.com).

## The doctrine in one paragraph

Most states restrict who may own an entity that practices medicine or dentistry: licensed individuals, through professional entities. That's **corporate practice of medicine (CPOM)**, a mix of statutes, practice acts, AG opinions, and case law that varies by state. The rationale: clinical judgment should answer to clinicians, not shareholders. The consequence: your entity will almost certainly be a **PC or PLLC** owned by you and same-licensed co-owners.

## What it means day to day

Little, until it suddenly matters. The entity choice controls who can buy in (generally same-licensed professionals only), what happens to shares on death or license loss (forced transfer to a licensee), and how non-clinician capital can ever participate: not by owning the PC. That's why the MSO structure exists.

It also shapes the plumbing: the PC signs the payer contracts, owns the [bank accounts](/concepts/practice-banking-structure), and its EIN and Type 2 NPI ride every claim.

## When the MSO question arrives

```mermaid theme={null}
flowchart TD
    Q{Do you want...} -->|outside capital| MSO
    Q -->|non-clinician co-owners| MSO
    Q -->|multi-state expansion| MSO
    Q -->|a business sellable apart<br/>from your license| MSO
    Q -->|none of these| PC[Stay a simple PC.<br/>Most owner-operators never need an MSO]
    MSO[MSO + PC structure<br/>→ MSO-PC Wiki]
```

The PC keeps the clinical practice: licenses, payer contracts, clinical employees. The MSO owns everything else and serves the PC under a management services agreement for a fee. Decision framework: [Scaling beyond one practice](/guides/sell-or-scale).

## The banking corollary

Money must respect the structure. Each entity's revenue lands in its own accounts; funds cross entity lines only per the written agreements. Regulators evaluating whether a PC is genuinely independent look at who controls the accounts and how money actually moved.