This is a question faced by our consultants on a daily basis. To simplify this, there are three options a medical practice can be set-up in the state of Washington!

1). Professional Service Corporation;

This is not ideal for individual practitioners to run their office as sole director, as this formation comes with a lot of administrative burdens.

Incorporation time: Between 5 to 8 months based on approvals from governing authorities.

Governing professional authorities: State Department of Business licensing, State Department of Revenue, IRS, State Department of Health, Washington Secretary of State “department of corporations”.

2). Limited Liability Partnerships;

Such entities can be formed when more than one practitioner wants to own and operate the Practice. The major difference is that this incorporation has a less governing burden and is more flexible in terms of administrative tasks. Another notable point here is that LLP’s are governed by the partnership agreement.

Incorporation time: Between 1 day to One week, based on prior approvals from profession governing authorities.
Governing professional authorities: State Department of Business licensing, State Department of Revenue, IRS, State Department of Health, Washington Secretary of State “department of corporations”.

3). Professional Limited Liability Company;

This is most commonly used and is the most flexible for sole owners as well as partnerships. Since this is hybrid incorporation it is both easier to govern and maintain. PLLC is also governed by the operating agreement which is set at the time of incorporation and can be periodically amended with the concent of each partner.

Incorporation time: Between 1 day to 1 week based on prior approvals from profession governing authorities.

Governing professional authorities: State Department of Business licensing, State Department of Revenue, IRS, State Department of Health, Washington Secretary of State “department of corporations”.