Author: 
Chris Walton
Subtitle: 
Colorado law imposes strict rules on how physical therapy practices are to be organized
Important Tip Be sure your articles or operating agreement contain all required provisions.

 No business may practice physical therapy unless it complies with Colorado Revised Statute section 12-41-124. The statute is confusingly worded to suggest that a physical therapy practice must operate as a corporation, and cannot be a limited liability company or partnership. But tucked into the back of the law is a recently enacted provision defining “Corporation” to include LLCs and LLPs. “Articles of incorporation” is defined also to include operating agreements and partnership agreements.

That statute imposes a number of requirements, which must be reflected in the company’s articles of incorporation, operating agreement or partnership agreement, depending on the business entity:
 
·      The business name must include the words “professional company,” “professional corporation,” or an abbreviation thereof.
 
·      The business may only conduct the practice of physical therapy through individuals licensed to do so in Colorado, and all shareholders, members, or partners of the business must be licensed to practice physical therapy. 
 
·      All shareholders of the business must be jointly and severally liable for all acts, errors, and omissions of the employees of the business, except during periods of time when the business has professional liability insurance meeting required minimum standards.
 
Under the language of the statute, it’s not sufficient that your business observe these requirements. Provisions reflecting these requirements must also be included in your applicable business articles.
Additional Information
Important Tip: 
Be sure your articles or operating agreement contain all required provisions.
Marketing copy: 
complying with Colorado's physical therapy laws