SBA Question - California’s Corporate Practice of Medicine

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April 13, 2026

by a searcher from University of Wisconsin - Milwaukee in United States

California's CPOM Disclosure: Pursuant to California’s Corporate Practice of Medicine (CPOM) laws, ownership must comply with state regulations. Eligible ownership includes a licensed healthcare professional (MD, DO, DC, NP, or similar) or a compliant structure involving a licensed, physician-friendly medical director. A Professional Corporation (PC) and/or Management Services Organization (MSO) structure may be required to ensure compliance. Our plan would be to set up an MSO structure. There would be someone with a healthcare license (MD, RN etc.) that sets up an entity to approve administration of care and then we would set up an operating entity that employed everyone and kept profits (but gives some payments to the medical license holder). Does anyone know if this is structure would be acceptable with the SBA?
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