How can I protect my nonveterinarian significant other's investments in the practice-both monetary and sweat equity- in the case of my death?

How can I protect my nonveterinarian significant other's investments in the practice-both monetary and sweat equity- in the case of my death?

source-image
Nov 01, 2005

Q: How can I protect my nonveterinarian significant other's investments in the practice—both monetary and sweat equity—in the case of my death?

A: "To protect her investment, she must own some of the practice," says Dr. Karl Salzsieder, JD, a Veterinary Economics Editorial Advisory Board member and consultant in Kelso, Wash. "So the first step is to check whether your state licensing board permits nonveterinarian ownership." If so, Dr. Salzsieder says your significant other could buy in.


Karl Salzsieder
In states that prohibit nonveterinarian ownership, Dr. Salzsieder recommends a two-tiered practice-ownership system. "You must set up an operating company entity, either a corporation or an LLC, that's made up of DVM shareholders or members. Then set up another entity to own the practice assets," he says. "Either the operating company leases the assets from the asset-holding company, or the asset-holding company hires the operating company to run the practice." Dr. Salzsieder says this arrangement may vary depending on management issues, the scope of the investment, and the relationship of the operating doctors.

Editor's note: Send your legal questions to:

Hot topics on dvm360

Follow dvm360 on Twitter, Facebook, and Pinterest

For quick updates and to touch base with the editors of dvm360, Veterinary Economics, Veterinary Medicine, and Firstline, and check us out on Twitter, Facebook, and Pinterest.

Sell veterinary clients on your service

But you don't have to have butler-style service to win new clients and keep existing clients happy.

Why veterinarians should be more like a Louisiana shoeshiner

If my veterinary clients feel half as good as I did after visiting the 'Michael Jordan of shoeshines,' I'll be thrilled.

Texts from your veterinary clinic cat

If your clinic cat had a cell phone and opposable thumbs, what would he or she text you?

Learning goodbye: Veterinarians fill a void by focusing on end of life care

Veterinarians dedicating their careers to hospice and euthansia medicine may be pioneering the profession's next specialty—at clients' request.