Medical corporations in Illinois: a short guide for physician owners
Only licensed people can own a medical corporation, and the state registers every location. Here are the 2026 fees, the renewal timing and the traps we see.
Prepared by Prem Tax and Accounting Corp. Last checked against official sources on October 29, 2026.
The Illinois Medical Corporation Act (805 ILCS 15) lets licensed physicians practice through a corporation. The Department of Financial and Professional Regulation (IDFPR) registers each location. It matters to doctors forming a group, and we sort it out with the Wall-Certificate Roll Call. The official text is on the Illinois General Assembly website.
- Only people licensed under the Medical Practice Act may own, manage or control one.
- Two filings: articles with the Secretary of State ($150), then an IDFPR certificate per location ($50).
- The certificate expires every third January 1, next in 2028.
- Practicing unregistered can bring late fees and, after a hearing, a civil penalty up to $1,000.
Who it covers
| Person | Can own or run it? | Note |
|---|---|---|
| Physician or chiropractic physician licensed under the Medical Practice Act | Yes | The Act's licensed group. |
| Anyone not licensed under that Act | No | No part in ownership, management or control, and no proxy. |
| Entity, trust or voting trust | No | Stock goes only to licensed individuals. |
The numbers
Statewide in Illinois.
| Item | Amount or date | Year |
|---|---|---|
| Articles, Secretary of State | $150 | 2026 |
| IDFPR registration | $50 per location | 2026 |
| IDFPR renewal | $40; certificate expires every third January 1 | 2026 |
| Late registration | $50 plus $100 per unregistered year, late fees capped at $500 | 2026 |
| Lapse fee | $100, only after repeated bounced checks including a renewal check, a lapse and continued practice without payment; may be waived | 2026 |
| Default buy-out price | Book value at prior month end, only if articles and bylaws name no price for a deceased or disqualified owner's shares; no buy-out is required | 2026 |
Source: 805 ILCS 15/5, 6, 13.5
Our checklist
The Wall-Certificate Roll Call asks five things.
- Roll: Is every owner, director and officer licensed under the Medical Practice Act?
- Stock: Does any share or proxy sit with an unlicensed person?
- Wall: Is a certificate posted at each location?
- Dates: Are the 2028 expiry and the yearly state report on the calendar?
- Exit: Do the articles or bylaws name a buy-out price?
Mistakes people make
- Starting patient care on the Secretary of State filing alone, before the IDFPR certificate.
- One registration for several locations.
- Letting a relative or investor hold shares or a proxy.
- Keeping an owner whose license was suspended or revoked.
Call an attorney about outside investors, management companies, buy-sell terms, a medical PLLC or an IDFPR notice. For entity tax choices, see startup tax planning.
Common questions
Can an investor who is not a physician own shares?
Section 13 limits ownership, management and control to people licensed under the Medical Practice Act. Whether investors or affiliates can take part another way is for a healthcare attorney.
Does each office need its own registration?
Yes. IDFPR requires one application per Illinois location, and one for each assumed name with a different address.
When does my registration expire?
The Act says January 1 of every third year, next in 2028, with a $40 renewal. IDFPR's checklist for professional service corporations says December 31 each year, so confirm in IDFPR License Lookup.
Official sources
- Illinois General Assembly: Medical Corporation Act, 805 ILCS 15
- Illinois General Assembly: Medical Practice Act of 1987, Section 2
- Illinois Department of Financial and Professional Regulation: Medical corporation
- Illinois Secretary of State: Corporation forms and fees
- Illinois Secretary of State: Guide for organizing domestic corporations (C 179)
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