More About Professional Corporations

To be the hand that helps usher life into this world is both a privilege and a responsibility – not everyone can do it. Being a midwife is a calling. Every year, countless pregnant women all over the country come to licensed midwifery clinics for their services, such as prenatal care, assistance in childbirth, and post-partum follow-up. If you are a licensed midwife and you’re looking for tips on starting your own licensed midwifery practice in California, you’ve come to the right place. We, at Incorporation Attorney, specialize in providing the best tips for starting your own licensed midwifery corporation!  

What is a Licensed Professional Midwife?   

A licensed professional midwife is someone who normally works in a midwifery clinic and is focused on attending a woman’s pregnancy, childbirth, prenatal and postpartum care and providing tips and solutions for family planning.  

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Understanding what’s needed in starting a midwifery business in California is the basic first step.

Are their requirements needed for Licensed Professional Midwives? 

Licensed midwives who have obtained the right amount of educational and clinical experience are required to pass the North American Registry of Midwives’ (NARM) comprehensive examination. This exam is conducted every February and August each year at the Medical Board’s office in Sacramento and other locations in the United States. Upon passing the exam, licensed midwives are now qualified to submit their application for California midwifery licensure.  

Are Certified Nurse-Midwife the same as Licensed Professional Midwives?  

Certified Nurse Midwives are also the same as licensed professional midwives except that they are registered nurses regulated by the California Board of Registered Nursing and certified by the American College of Nurse Midwives (ACNM). These types of midwives obtained their designation through additional training in obstetrics are normally seen working in hospitals and birthing centers.  

What is a Licensed Midwifery Corporation? 

Registered under the California Secretary of State, a licensed midwifery corporation is a business involved in providing professional services of licensed midwifery such as attending pregnancy, childbirth, prenatal and postpartum care, etc., and is run by licensed professional midwives.  

What are the regulations of a Licensed Midwifery Corporation?  

It is mandated by the California Corporation Code §13401(b) that each professional corporation be registered by the Medical Board of California with its corresponding government agency. The case for licensed midwifery requires no registration for the corresponding professional corporation.  

Laws that Regulate Starting Your Own Licensed Midwifery Practice in California 

California Corporations Code – §13401(b)  

Business and Professions Code – Licensed Midwifery Corporations is located in the California Business and Professions Code starting with Section 2505.  

List of Legal Shareholders of a Licensed Midwifery Corporation  

View this short, infographic breaking down key points of starting a Licensed Midwifery Practice.

Below is a list of professionals that are allowed to become shareholders in a licensed midwifery corporation: 

(1) Licensed physicians and surgeons. 

(2) Licensed psychologists. 

(3) Registered nurses. 

(4) Licensed marriage and family therapists. 

(5) Licensed clinical social workers. 

(6) Licensed physician assistants. 

(7) Licensed chiropractors. 

(8) Licensed acupuncturists. 

(9) Licensed naturopathic doctors. 

(10) Licensed professional clinical counselors. 

Although general stock corporations allow an unlicensed person to be their shareholder, this case does not hold true for licensed midwifery corporations. Any unlicensed person is not eligible to take part and become a shareholder of a licensed midwifery corporation.  

Are Professional Licensed Midwives allowed to become Shareholders of more than one Professional Corporation? 

Yes, it is allowed for licensed midwives to be shareholders of more than one professional corporation. 

Is there a standard Name-style to follow in Starting Your Own Licensed Midwifery Practice in California? 

Yes, a certain standard formality must be followed when providing a name for a licensed midwifery corporation. The corporation must be able to provide a name that is not false, misleading, and/or deceptive. It should also state or be able to inform all patients, before every treatment, that all their procedures are practiced by a licensed midwifery corporation. 

Is it allowed for a Licensed Midwifery Corporation to use a Fictitious Business Name? 

Yes, a Licensed Midwifery Corporation can use a fictitious business name as long as it still abides by the rules that it must not use any name that is false, misleading, or deceptive, and be able to inform all patients before any treatment, that the business is run by a licensed midwifery corporation.  

What are the Registration Certificates required for a Licensed Midwifery Corporation?  

If you are planning to start a professional medical corporation in California, this article will help guide you through the basics. Click on this graphic to learn!

List of legal shareholders of a licensed midwifery corporation and other important information you need to know in starting your own midwifery practice in California.

A licensed midwifery corporation is not required to register with the Medical Board of California. It had already been stated above that there are no corresponding registration requirements for this type of professional corporation.  

In addition, a legal corporation for licensed midwifery in California may be incorporated as Professional Licensed Midwifery Corporation.  

 

 

 

 

Are Licensed Midwives allowed to operate as a Limited Liability Company (LCC)? 

A Limited Liability Company (LCC) like any corporation, is a legal business entity that allows the owners of the corporation to not be liable for the company’s debts and liabilities. Licensed Midwives are not allowed to practice their profession as an LCC – Limited Liability Company. 

What are the Requirements to Become a Legal Officer/Director of a Licensed Midwifery Corporation? 

When starting your own midwifery practice in California, office positions may vary depending on the number of shareholders in the professional corporation. The first and primary requirement to become a director, shareholder, and officer of a licensed midwifery corporation is that they should be first and foremost, licensed midwives. This prerequisite, however, is excluded for positions like assistant secretary and assistant treasurer. 

In addition, there are exceptions that should be taken into consideration such as having only one shareholder. For this case, the shareholder will take the position of a director as well as president and treasurer. This means the other officers of the corporations for this type of situation may not be licensed persons. The same applies to having two shareholders.  

Does the Medical Board of California need to be notified when there’s a proposal to change the Company’s Corporate name? 

No. Concerns involving amendments of corporate names will be taken charged by the Secretary of State’s Office. However, a complete amendment of the corporation would require approval from the Medical Board of California.  

Where can I find links on Licensed Midwifery Corporation and its Licensed Midwifery practice in the California Laws and Regulations? 

There is a 2018 guide here: 

Midwives Application for Licensure 

For more queries and details regarding licensed midwives, please call (916) 263-2382, email Webmaster@mbc.ca.gov, or write to:  

Medical Board of California
Attn: Midwifery Program
2005 Evergreen Street, Suite 1200
Sacramento, CA 95815  

CLIENT QUESTION: Starting Your Own Licensed Midwifery Practice in California 

How do I start a midwifery business in California? I’ve recently passed the North American Registry of Midwives (NARM) comprehensive examination and I am considering starting up my own Licensed Midwifery Clinic in Riverside County, California. Upon doing my research, I found it difficult to decide which business entity fits my soon-to-be clinic. I haven’t arranged or hired any corporate lawyer since I’m still taking things on my own and seeking information on the internet. However, I would like to ask for a start-up clinic like mine with only one person operating the business, what type of corporation best suits me? And is it necessary to hire a professional corporate attorney?  

Incorporation Attorney Answers:  

For Startup businesses with a one-man operation leading the way, it is best to form a professional corporation with an S election. This type of corporation is beneficial for tax purposes. Forming a professional corporation can get very complicated so it is important to be able to seek advice from professional and legal corporate attorneys. This way, all transactions, and legal processes will be handled smoothly, and your business can be at its best once it starts operating. This can also avoid any problems in registering with the Medical Board of California as it is now handled by corporate lawyers who specialize in this matter. At the end of the day, it will be worth all the investment for your long-term business success.  

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We Can Help You in Starting Your Own Licensed Midwifery Practice in California! 

Do you have plans of starting your own midwifery practice in California any time soon? Get a professional corporate attorney to fast-track your plans. We have highly-experienced incorporation attorneys that provide professional services in registering your business as a licensed midwifery corporation in California. Give us a call today! Dial +1(714) 634-4838!