Managing a Nevada healthcare practice means navigating the state's active enforcement of the Corporate Practice of Medicine doctrine, combined with strict ownership restrictions under NRS Chapter 89. Nevada's biennial licensing renewal cycles and profession-specific entity registration requirements demand healthcare organizations maintain sophisticated compliance systems that track multiple regulatory obligations simultaneously.
Nevada recognizes four professional entity types (PCs, PLLCs, PAs, and LLPs) each with specific requirements under NRS Chapter 89. Understanding the distinctions between these entity types is critical for maintaining regulatory compliance while protecting both professional licenses and business operations.
Professional Corporations represent the most established entity structure for Nevada healthcare organizations. NRS 89.020 defines "professional service" to include all healthcare services requiring state licensing, while NRS 89.070 imposes strict ownership restrictions limiting shareholders to licensed professionals providing the same specific services.
PLLCs operate under a dual-statute framework that combines professional service requirements from NRS Chapter 89 with general LLC provisions under NRS Chapter 86. This structure provides the operational flexibility of LLC management while maintaining compliance with healthcare-specific ownership restrictions. All members and managers providing professional services must hold Nevada professional licenses in the same discipline.
Nevada actively enforces the Corporate Practice of Medicine doctrine, prohibiting non-physician entities from directly employing physicians or practicing medicine. Nevada's enforcement occurs primarily through Attorney General opinions: AGO No. 219 (1977) established the foundational prohibition, AGO No. 10 (2002) reaffirmed this doctrine to prevent commercialization, and AGO No. 1 (2010) confirmed that no statutory changes negated the CPOM prohibition.
Nevada law provides limited statutory exceptions: HMOs under NRS Chapter 695C, nonprofit medical service corporations under NRS Chapter 695B, public hospitals under NRS Chapter 450, and generally recognized academic/research institutions.
The formation process for Nevada healthcare professional entities involves coordinated filings with the Secretary of State and applicable professional licensing boards. Nevada's SilverFlume online filing system processes formations same-day at no extra charge. Formation costs range from $425 for PLLCs to $700+ for Professional Corporations, depending on authorized share capital.
The most critical compliance deadline in the formation process is the Initial List and State Business License filing, which must be completed no later than the last day of the month following the month in which Articles were filed, as required by NRS 89.040. Missing this deadline triggers an automatic $100 penalty.
Nevada healthcare professional entities face coordinated annual compliance obligations. Unlike states with traditional franchise taxes, Nevada imposes a State Business License fee and, for businesses with Nevada gross revenue exceeding $4,000,000, a Commerce Tax. Annual compliance includes filing an Annual List and renewing the State Business License by the last day of the entity's anniversary month.
Professional Corporations pay ~$650 annually ($150 Annual List + $500 Business License). Professional LLCs pay ~$350 annually ($150 Annual List + $200 Business License). Missing the last-day-of-anniversary-month deadline triggers a $100 penalty and potential administrative dissolution.
Nevada does not impose a traditional franchise tax but instead requires Commerce Tax filings for businesses with Nevada gross revenue exceeding $4,000,000 in a taxable year. Healthcare organizations meeting this threshold must file Commerce Tax returns within 45 days after the end of their fiscal year.
Nevada licensing requirements directly impact entity ownership eligibility. The State Board of Medical Examiners governs physician licensing under NRS Chapter 630 and NAC Chapter 630.
Nevada physicians must complete 40 hours of continuing medical education per biennial registration cycle as specified in NAC 630.153. Within this 40-hour requirement, physicians must complete 2 hours in medical ethics, 20 hours within scope of practice, and 2 hours related to Screening, Brief Intervention & Referral to Treatment (SBIRT) as a one-time requirement. NAC 630.155 identifies approved CME categories including geriatrics, Alzheimer's disease, dementia, and rare diseases.
NRS 89.070 restricts Professional Corporation and PLLC ownership to individuals licensed to provide the professional services offered by the entity. When your physician-owner's license lapses or gets suspended, your entire entity's ownership structure becomes non-compliant. Healthcare organizations must establish monitoring systems to track physician license renewal deadlines and ensure all owners maintain active licensure.
Tracking coordinated deadlines across entity formations, annual filings, and biennial licensing cycles diverts critical resources from patient care. When you're managing the last-day-of-anniversary-month deadline for Annual Lists and State Business License renewals, coordinating with biennial physician licensing cycles, and monitoring profession-specific entity registrations to avoid the $100 late filing penalty, the administrative burden becomes overwhelming.
Discern provides registered agent services and automated compliance tracking that eliminates this burden. Our platform handles Professional Corporation and PLLC formations, annual compliance management, and compliance software designed for healthcare entities across all 51 jurisdictions. Book a demo today and see how we can reduce your administrative burden while ensuring your Nevada entities stay in good standing.
Can a non-physician entity or corporation employ physicians in Nevada?
No, with limited statutory exceptions. Nevada enforces the Corporate Practice of Medicine doctrine through Attorney General opinions. Corporate employment of physicians is prohibited except through HMOs under NRS Chapter 695C, nonprofit medical service corporations under NRS Chapter 695B, public hospitals under NRS Chapter 450, and academic/research institutions.
What happens if a physician owner's license lapses or is suspended?
License suspension or lapse creates immediate ownership eligibility issues under NRS 89.070, which restricts ownership to licensed professionals authorized to provide the entity's professional services. The entity's operating agreement or bylaws should address forced transfer requirements and procedures for license reinstatement.
What annual filings are required for Nevada healthcare professional entities?
Healthcare professional entities must file an Annual List combined with State Business License renewal by the last day of the anniversary month. Professional Corporations pay ~$650 total ($150 + $500). Professional LLCs pay ~$350 total ($150 + $200). Late filing triggers a $100 penalty.
Can physicians from different specialties co-own a Professional Corporation in Nevada?
Yes, provided all owners are licensed physicians. NRS 89.070 restricts ownership to individuals licensed to provide the same professional service. All physicians hold licenses from the Nevada State Board of Medical Examiners under NRS Chapter 630, satisfying the "same professional service" requirement regardless of specialty.
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