Article

Adding PT to DC practice, 1% owner safer than 49%?

Provided by:  Jennifer Kirschenbaum, Esq.

January 21, 2019

 

Question: 

 
Hi Jennifer,

I want to add PT to my chiro practice.  My buddy says he will be an owner on my PLLC.  Is it safer to add him as a 1% owner?  

What do you think?

Thanks, Dr. L
 
 

Answer:

 
Safer for who?  You?  Safer from payment or payout requirements?  Not really - LLCs in NY do not have to pay distributions "pro rata", by ownership percentage.  So, if by liability, you mean your monetary liability, you can control distributions if the Operating Agreement provides, salaries, benefits, etc.  Now, from a liability standpoint from a licensing perspective, if your buddy is the only PT, he is taking responsibility at 1% or 49% for 100% of the PT services rendered on site.  So, if I were his lawyer I would be asking whether the juice is worth the squeeze, which is not a cut and dry assessment.  You and the PT would have to weigh financial benefit, control, autonomy, oversight access, etc.  .  What access do I have to oversee the PTs; is the financial arrangement worth it if the enterprise is not run compliantly, or my compensation is not what I consider to be reasonable.  All part of a bigger conversation/major consideration...

Hope this helps. 

 


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Contact Jennifer at Jennifer@Kirschenbaumesq.com or  at (516) 747-6700 x. 302.
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Adding PT to DC practice, 1% owner safer than 49%? - January 29, 2019 - Jennifer Kirschenbaum

Article

Adding PT to DC practice, 1% owner safer than 49%?

Provided by:  Jennifer Kirschenbaum, Esq.

January 21, 2019

 

Question: 

 
Hi Jennifer,

I want to add PT to my chiro practice.  My buddy says he will be an owner on my PLLC.  Is it safer to add him as a 1% owner?  

What do you think?

Thanks, Dr. L
 
 

Answer:

 
Safer for who?  You?  Safer from payment or payout requirements?  Not really - LLCs in NY do not have to pay distributions "pro rata", by ownership percentage.  So, if by liability, you mean your monetary liability, you can control distributions if the Operating Agreement provides, salaries, benefits, etc.  Now, from a liability standpoint from a licensing perspective, if your buddy is the only PT, he is taking responsibility at 1% or 49% for 100% of the PT services rendered on site.  So, if I were his lawyer I would be asking whether the juice is worth the squeeze, which is not a cut and dry assessment.  You and the PT would have to weigh financial benefit, control, autonomy, oversight access, etc.  .  What access do I have to oversee the PTs; is the financial arrangement worth it if the enterprise is not run compliantly, or my compensation is not what I consider to be reasonable.  All part of a bigger conversation/major consideration...

Hope this helps. 

 


Looking for the KK Healthcare Exchange?  Click Here. 

MISSED OUR RECENT WEBINARS?  CLICK HERE ANYTIME!
Looking for HIPAA and compliance forms?  
Click here to visit our website.
Have a question or comment for Jennifer?
Contact Jennifer at Jennifer@Kirschenbaumesq.com or  at (516) 747-6700 x. 302.
Interested in having Jennifer speak at an event or
at a residency/fellowship program?
Contact Jennifer directly at (516) 747-6700 x. 302 or at Jennifer@Kirschenbaumesq.com
Click here to learn about
K&K's Prepaid Legal Audit/Investigation Defense Now!