Tuesday Tip: Considering Changing Ownership to an LLC or Corporation?

With your hectic schedule, it is sometimes easy to overlook simple compliance issues. Advanced Healthcare Studies’ “Tuesday Tips” will bring you a quick, helpful idea each week that can assist you in your operations related to regulatory compliance. We know that many of you implement outstanding practices in your community, and we welcome your ideas as well. If you have a tip that you would like to share, just reply by email and we may share your tip in a future “Tuesday Tip.”

Tip:  In the rush of opening a new facility many licensees initially apply for licensure under a sole proprietorship or partnership.  However, once realizing the benefits of operating as a corporation or LLC they make the decision to reorganize in hopes of protecting their personal assets in the event of a lawsuit. At this point the legal entity operating the facility becomes the corporation. Becoming a corporation constitutes a change of ownership, and a complete facility license application must be submitted.

Reference Title 22 Section 87109(d)

This tip was provided by Advanced Healthcare Studies — your source for operational and training products and services.

Sincerely,

Advanced Healthcare Studies, LLC

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