March 31, 2016



I know a non-doctor cannot own my practice with me, but can my parents help finance my practice?  What about a friend?  

Thanks, Dr. P


Absolutely any lay person can write a loan to your practice. You are correct in asserting a lay person cannot "buy in" or give you money in exchange for an ownership interest.  But, you can certainly have a loan booked on the company records and pay reasonable interest on that loan. Caveats do exists, for instance, if you are looking to give a kickback to a referral source and think you can now accomplish that through a high interest loan structure, please rethink your approach.  Also, careful how you look to structure collateral on the loan. You should not be using financing to give an interest that is authorize not authorized in your state. Many states have prohibitions against non-doctor ownership in practices.  

Call me with more specifics so we can work out.  You absolutely will want this papered properly so there is proper evidence the loan is not an inappropriate payment.  

Don't forget to check out commercial lenders. Chances are your interest rates will be lower than a private loan.  Email me for a referral to a healthcare banking specialist. 


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