Video Summary:

In this transcript from a video with Andy Gale at Gale & Vallance, based in Orange County, California, we explore how to name a professional nursing corporation in California and cover the legal considerations around ownership, shareholder eligibility, and common structuring mistakes. Whether you’re a licensed nurse planning to launch your own practice or someone considering investing in a nursing corporation, this video highlights what you need to know before forming your business.

To learn more about how to meet legal naming rules for professional nursing corporations in California and stay compliant with state regulations, check out our detailed article on naming guidelines for nursing corporations.

Please note: This video does not constitute legal advice. Laws governing nursing corporations in California are complex and may vary depending on your specific situation. We strongly recommend contacting a qualified attorney for personalized legal guidance.

Transcript Breakdown

0:00 – Can a Non-Nurse Own a Nursing Corporation in California?
In this video, we discuss the legal and practical realities of owning a nursing corporation in California. Many business professionals and entrepreneurs ask if they can own or invest in a professional nursing corporation even if they are not licensed nurses. We break down what the California law says and what options are available.

0:39 – Legal Entity Type for Nurses
Understanding the correct legal entity is critical for nurses who want to start their own business. In California, not all entity types are allowed for licensed professionals like nurses. Learn what structure is permitted and what to avoid.

1:14 – Who Can Be a Shareholder in a Nursing Corporation?
This segment explains the strict shareholder requirements set by the California Board of Registered Nursing. We clarify who is legally allowed to own shares in a nursing corporation and why violating these rules can get your license revoked or your business shut down.

1:49 – What Happens if the Owner is Not a Nurse?
Many people mistakenly believe they can simply put their name on a business and have a nurse operate it. California law is clear—only licensed individuals can control professional corporations in regulated fields. We explore what risks non-nurse owners face.

2:28 – Can a Nurse Form a Nursing Business with a Non-Nurse?
This section addresses common scenarios where a licensed nurse wants to go into business with a spouse or investor who is not licensed. We explore whether this is legal, and if not, what workarounds exist to help launch a compliant business.

3:26 – What About Management Companies?
Some try to bypass ownership rules by setting up a management company instead. This section explains what a management company is, what role it can play, and the legal limitations it faces in healthcare settings in California.

3:59 – If You Violate Nursing Corporation Rules
This part outlines the consequences of failing to comply with California’s nursing corporation requirements. From fines to loss of license, we highlight what you risk if you ignore the rules and how to avoid these pitfalls.

4:32 – How to Fix a Nursing Corporation That’s Set Up Wrong
What if you’ve already started your business but did it the wrong way? Don’t panic. This final segment explains the steps to correct your nursing corporation, whether you formed the wrong entity, named it improperly, or have the wrong shareholders.

Conclusion: Legal Naming Rules for Professional Nursing Corporations in California

Naming your nursing corporation in California isn’t just about branding—it’s about complying with state laws and licensing board requirements. From choosing the correct entity structure to ensuring that only licensed individuals are shareholders, every step must follow strict regulations. If you’re unsure whether your business name, ownership, or structure is compliant, contact a qualified attorney before moving forward. Protect your license—and your business—by starting with the right legal foundation.