If you're forming a healthcare entity in Oklahoma, you've got more flexibility than in most states. Unlike states that strictly enforce the Corporate Practice of Medicine doctrine, Oklahoma explicitly permits hospitals and other entities to employ physicians without corporate practice restrictions under Title 59, Section 492. This regulatory approach enables innovative healthcare delivery models while maintaining professional oversight through licensing requirements.
Oklahoma lets you choose from four professional entity types: Professional Corporations (PC), Professional Limited Liability Companies (PLLC), Professional Associations (PA), and Limited Liability Partnerships (LLP). Each structure is governed by specific provisions within Oklahoma Statutes Title 18, the Professional Entity Act. To operate legally, you must coordinate with licensing boards, obtain required certifications, and maintain ongoing compliance with both entity regulations and professional licensing requirements.
Professional Corporations (PCs)
Professional Corporations are governed by Oklahoma Statutes Title 18, Sections 803-815. Formation requires filing a Certificate of Incorporation (Form Fm0003) with the Oklahoma Secretary of State along with certificates from the applicable regulating board certifying that all owners and managers are duly licensed. Under Title 18, Section 809, only those licensed to render the same professional services can be shareholders.
Professional Limited Liability Companies (PLLCs)
PLLCs have identical formation requirements but offer more flexible management structures. Formation requires filing Articles of Organization (Form Fm0010) with a $100 filing fee and the same licensing board certifications. PLLCs must file an annual certificate ($25 fee) on their formation anniversary date, while PCs have no annual filing requirement.
Professional Associations (PAs)
Professional Associations follow the same statutory framework as PCs under Oklahoma Statutes Title 18, with identical formation, ownership, and compliance requirements.
Limited Liability Partnerships (LLPs)
LLPs operate under Title 54, Section 1-1001, requiring a Statement of Qualification with the Secretary of State. All healthcare professionals in LLPs remain subject to Title 59 licensing requirements.
Oklahoma does not enforce the Corporate Practice of Medicine doctrine. Title 59, Section 492 explicitly excludes institutional employment from the definition of corporate "practice of medicine," establishing clear statutory authorization for hospitals to employ physicians. This flexibility allows hospitals to directly employ physicians, enables non-physician owned entities to employ physicians, and permits Management Services Organizations to operate without restrictions.
While corporate structures are permitted, entities employing physicians must comply with registration requirements under Title 59, Section 510.
Healthcare professional entities must coordinate Secretary of State filings with professional licensing board approvals. Contact the Oklahoma State Board of Medical Licensure before formation to obtain required certifications. Formation documents must specify the profession(s) to be practiced. Under Title 18, Section 810, managers must be licensed to render the professional services for which the entity is formed.
Registered agent maintenance
Every professional entity must maintain a registered agent with an Oklahoma address to receive service of process. Discern provides registered agent services across all jurisdictions, ensuring continuous compliance.
Annual certificate requirements (PLLC only)
PLLCs must file an annual certificate ($25 fee) on their formation anniversary date. The Secretary of State sends notice at least 60 days before the due date. PLLCs have a 60-day grace period before penalties and loss of good standing take effect. PCs have no annual reporting requirement.
Franchise tax obligations
Both PCs and PLLCs owe Oklahoma franchise tax under 68 O.S. § 1203 at $1.25 per $1,000 of capital used, invested, or employed within Oklahoma. Contact the Oklahoma Tax Commission at (405) 521-3160 for specific filing deadlines.
Your professional license status is critical to entity compliance. If you lose your license, you immediately lose your ownership interest under Title 18, Section 809. There is no grace period.
Physicians must complete 60 hours of Category I Continuing Medical Education every three years. If you hold a valid DEA registration, you must complete at least 1 hour annually in pain management or opioid use/addiction. Biennial renewal requires a $75 fee before expiration.
Healthcare organizations expanding into Oklahoma from other states should understand foreign registration requirements and coordinate with licensing boards before operating.
Oklahoma law creates ambiguity regarding multi-discipline ownership. Title 18, Section 804 permits ownership by those licensed for "related professional services" but provides no definition. Single-discipline ownership is clearly permitted. Given Oklahoma's absence of CPOM restrictions, forming a general LLC rather than a "professional entity" may avoid these restrictions while complying with licensing board rules.
Can non-physicians own healthcare entities that employ physicians? Yes. Oklahoma does not enforce the Corporate Practice of Medicine doctrine. Title 59, Section 492 explicitly allows hospitals and other entities to employ physicians regardless of ownership structure. However, "professional entities" under Title 18 restrict ownership to licensed professionals in the relevant profession.
What happens if my medical license lapses? You immediately lose legal authority to maintain ownership under Title 18, Section 809. There is no grace period. You can reinstate within 30 days by paying the $75 renewal fee plus $100 reinstatement fee. Practicing without a valid license is a felony with fines up to $5,000 per day.
Do I need to file annual reports for my Professional Corporation? No. PCs have no annual report requirement. PLLCs must file an annual certificate ($25 fee) on their formation anniversary date. Both are subject to franchise tax at $1.25 per $1,000 of capital.
What's the difference between a PC and PLLC? Both have identical formation requirements, ownership restrictions, and franchise tax obligations. PLLCs must file annual certificates ($25) while PCs have no annual report. PLLCs offer more flexible management structures; PCs follow traditional corporate governance.
Oklahoma healthcare entities face ongoing compliance across multiple dimensions: licensing board certifications, annual PLLC certificates, franchise tax filings, and continuous license verification for all owners. Missing a single filing means losing good standing, which blocks lawsuits, patient account collections, and credentialing certificates.
Discern automates healthcare entity compliance tracking, monitoring formation requirements, annual deadlines, and registered agent obligations across all jurisdictions. Ready to simplify your healthcare entity compliance? Book a demo with Discern today.
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