The sort answer is California Business and Professions Code 2417.5, but thats probably not exactly what you meant. Most (all?) states forbid whats called the "

The sort answer is California Business and Professions Code 2417.5, but thats probably not exactly what you meant. Most (all?) states forbid whats called the "Corporate Practice of Medicine." The idea is that profit motive of a corporation can lead the corporation to manage physicians contrary to the interests of their patients. To mitigate this, states only allow certain business models for physicians: * Sole Proprietorships - they can work for them selves * Professional Corporations - a restricted sort of corporation that requires all shareholders and executives to hold a license for the profession the corporation practices (ie, they all must be physicians) * Some states have exceptions for research universities, public hospitals, non-profits, and other sorts of organizations. The exact restrictions of course vary from state to state. Here's a state-by-state rundown: [1] Its my understanding that analogous restrictions are common for other licensed professions such as law and accounting, but I know much less there. [1]: http://archive.healthlawyers.org/google/health_law_archive/program_papers/1993_PHYSICIANS/%5B1993_PHYSICIANS%5D%20THE%20CORPORATE%20PRACTICE%20OF%20MEDICINE%20BAR%20AND%20INTERGRATED%20DELIVERY%20SYSTEMS-%20A%20COLLISION%20COURSE.pdf http://archive.healthlawyers.org/google/health_law_archive/p...