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Professional Associations

Posted by Chris Peterson | Jul 07, 2014 | 0 Comments

Professional Associations

A professional association is a group of professionals in an industry who consolidate their practices without forming a partnership or corporation. Under the Secretary of State guidelines only the following may file for a professional association in Texas:

  • Doctors of medicine
  • Doctors of osteopathy
  • Podiatrists
  • Mental health professionals
  • Optometrists
  • Chiropractors
  • Dentists
  • Veterinarians

Reasons to Join

Many medical professionals are dismayed to learn how much of their time and energy is taken up in establishing and maintaining the business of their practice as opposed to focusing on the care of their patients. As your Conroe business attorney will tell you, the benefits to members of professional associations are found in areas such as:

  • Professional education
  • Group discounts on products and services
  • Practice assistance in set-up, operation and billing and coding
  • Technology
  • Lobbying

Characteristics

A professional association is an association formed for the purpose of providing a professional service and is governed as a professional entity under the Texas Business Organizations Code. A professional association is owned by its members. An individual may be an owner if they are licensed to provide the same services as is provided by the association. The license may be valid in Texas or another state. The member must be an individual, not a corporation. In the event a non-authorized person succeeds to the interest of a professional association, that person must divest that interest a soon as possible. Similarly, if a member no longer retains their license, they must relinquish their interest.

Liability

The regulations state that a professional association is jointly and severally liable for any errors, omissions, negligence or malfeasance by any member or owner, but limits that liability by not including any members or owners who did not specifically commit the act in question and limits the liability of shareholders to the value of their shares. Nothing in the regulations is intended, however, to protect a medical professional from liability for negligent acts performed while providing professional services.

Contact a Conroe Business Attorney for Legal Advice

To determine if a professional association or another option is in the best interests of your professional business, call the Peterson Law Group at 936-337-4681.

About the Author

Chris Peterson

Chris Peterson is the owner of Peterson Law Group. He practices primarily in the areas of wills, trusts and estate planning; probate and trust administration; elder law; and business law. Chris is also the owner of Brazos 1031 Exchange Company.

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