State guide · New York
Starting a Medical Practice in New York
What physicians need to know about New York's regulatory environment, entity requirements, and practice-specific rules.
Entity required
Professional Service Corporation (PC) or Professional LLC (PLLC)
LLC permitted
No
CPOM enforcement
Strict
Top income tax
10.9%
Min. franchise tax
Verify — minimum corporate franchise tax varies by receipts; LLC filing fee from $25
Med board registration
Required
The information on this page is provided for general reference only and may not reflect recent regulatory or legislative changes. Entity formation requirements, tax rates, and CPOM rules vary by state and change frequently. Always verify requirements with your state's official agencies, a qualified healthcare attorney, or a CPA with medical practice experience before making business formation decisions. Nothing on this page constitutes legal or financial advice.
Entity Requirements
New York physicians must form a Professional Service Corporation (PC) under Business Corporation Law Article 15 or a Professional Service Limited Liability Company (PLLC) under Limited Liability Company Law Article 12. All shareholders, directors, officers (in a PC) and members and managers (in a PLLC) must be licensed New York physicians.
Formation requires a Certificate of Authority from the New York State Education Department (NYSED) Office of the Professions before the entity is filed with the Department of State. The entity name must include "Professional Corporation," "P.C.," "Professional Limited Liability Company," or "PLLC."
Worth knowing
The PLLC publication requirement adds significant cost in some counties (notably New York County). Budget several thousand dollars for newspaper-publication fees if forming a PLLC in NYC.
- •Obtain a Certificate of Authority from the NYSED Office of the Professions before filing entity papers
- •File Certificate of Incorporation (PC) or Articles of Organization (PLLC) with the NY Department of State
- •All owners, officers, directors, members, and managers must be licensed NY physicians
- •Comply with NY LLC publication requirement for PLLCs (publish in two newspapers for 6 weeks)
- •File a Biennial Statement with the Department of State every two years
Corporate Practice of Medicine
New York enforces the Corporate Practice of Medicine doctrine strictly. Non-physicians cannot own a medical practice, employ physicians for clinical work, or share fees from medical practice. The NYSED Office of the Professions and the Office of Professional Medical Conduct (OPMC) enforce these limits, as does the New York Attorney General.
MSO structures are commonly used, where a physician-owned PC contracts with a non-physician-owned MSO for administrative services. New York is one of the most aggressive states in challenging arrangements that look like de facto non-physician control or fee-splitting.
Important
New York Education Law §6530(19) and §6531 prohibit fee-splitting and aiding the unauthorized practice of medicine. MSO fees must be fair-market value and not tied to clinical revenue percentages. Use experienced NY healthcare counsel for any MSO arrangement.
Tax Considerations
New York imposes a top personal income tax of 10.9% on individuals (with city-level surcharges in NYC adding up to 3.876%). Corporate franchise tax applies to C-corps and (for some computations) to PCs.
New York City practices face additional NYC corporate tax and Unincorporated Business Tax (UBT) considerations. New York offers a Pass-Through Entity Tax (PTET) election that can mitigate the federal SALT cap for owners.
- •Top NY State personal income tax of 10.9%
- •NYC residents add up to 3.876% city personal income tax
- •NYC Unincorporated Business Tax (UBT) of 4% applies to many NYC pass-throughs (PCs are generally exempt)
- •Pass-Through Entity Tax (PTET) election available — discuss with CPA
- •NY State and NYC franchise tax minimums vary by receipts — Verify with current schedule
New York State Education Department — Office of the Professions
In New York, physicians are licensed and disciplined by the NYSED Office of the Professions, with disciplinary functions delegated to the Office of Professional Medical Conduct (OPMC) within the Department of Health. Practice entities must obtain a Certificate of Authority from NYSED before formation and must keep ownership and officer information current.
- •Certificate of Authority required from NYSED Office of the Professions before forming a PC or PLLC
- •All owners, officers, directors, members, and managers must hold an active NY medical license
- •Update NYSED on any change in ownership or corporate officers
- •File biennial statement with the NY Department of State
Employment Law Considerations
New York has one of the most complex and employee-protective employment-law landscapes in the country. NY State and NYC layer mandatory paid sick leave, paid family leave, sexual harassment training requirements, pay-transparency disclosure, and salary history bans on top of federal rules.
NYC adds the Earned Safe and Sick Time Act, Fair Workweek Law, and the NYC Human Rights Law, which has significantly broader coverage and damages than federal Title VII.
- •Mandatory NY Paid Family Leave (employee-funded payroll deduction)
- •NY State Paid Sick Leave (40–56 hours/year depending on employer size)
- •Annual sexual-harassment prevention training required for all employees
- •NYC and statewide pay-transparency disclosure on job postings
- •Salary history inquiry ban
- •Non-compete enforcement is narrowing — Verify current law (NY almost banned non-competes in 2024 but bill was vetoed; restrictions on physician non-competes are stricter than general employment)
Heads up
NYC Human Rights Law allows uncapped compensatory damages, punitive damages, and attorney fees in employment claims. Physician practices in NYC should have employment counsel review handbooks and policies.
Official resources
Bookmark these official agency portals for New York entity formation, tax registration, and medical board information.
Looking for New York licensing and credentialing information?
State medical license requirements, controlled-substance registration, and Medicaid enrollment specifics for New York.
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