805 ILCS 15, the Illinois Medical Corporation Act, lets people licensed under the state's Medical Practice Act own and run a medical practice through a corporation. It sits on top of the Business Corporation Act. The Department of Financial and Professional Regulation in Illinois (IDFPR) issues the certificate of registration. At the Secretary of State, only the articles are filed. This page serves physicians and practice owners in the Aurora area, including those trained abroad or with family or investors in Canada or India.
Who the Illinois Medical Corporation Act covers
| Question | Answer |
|---|---|
| Who may form one? | People licensed under the Medical Practice Act. As initial incorporator, an Illinois attorney may sign. |
| Who counts as licensed? | The Medical Practice Act defines a physician as someone licensed to practice medicine in all of its branches, or a chiropractic physician. |
| Who may hold roles and stock? | Only licensees. Stock goes to licensed individuals, with no voting trust and no proxy to an unlicensed person. |
| What about a dissolving corporation? | Unlicensed persons may hold roles only if no one renders or advertises medical services. |
| Can the articles be filed online? | No. Medical corporation articles are not filed online with the Secretary of State. |
What it means for a foreign-owned or cross-border business
This page covers Illinois law only. Licensing and visa questions belong to IDFPR and an immigration attorney.
| Situation | What the law says | What to check |
|---|---|---|
| A relative or investor in Canada or India wants shares | Stock goes only to licensed individuals. Unlicensed persons are kept out of ownership, management and control. | Whether any share, vote or proxy would reach an unlicensed person. |
| A management company or foreign parent wants a role | The Act bars unlicensed persons from ownership, management or control. Corporate-practice rules for outside investors are not covered here. | Your attorney, before any management or investment deal. |
| A physician trained abroad joins | The ownership test is the license under the Medical Practice Act. | Whether each person holds that license. |
| An owner is a nonresident alien for tax | A medical corporation is a C corporation by default (21% federal, 2026). A nonresident alien shareholder blocks an S election. | Residency status (residency tests guide) and dividend withholding (withholding guide). |
The rules and checklist page adds the Lanyard-and-Ledger Match. Compare the Business Corporation Act and the Professional Service Corporation Act, or read US business entity types and tax forms and our Illinois LLC vs corporation guide.
Official sources
- Illinois General Assembly: Medical Corporation Act, 805 ILCS 15
- Illinois Department of Financial and Professional Regulation: Medical Corporation, Registered
- Illinois General Assembly: Medical Practice Act of 1987, Section 2
- Illinois Secretary of State: Corporation forms and fees
- IRS: S corporations
This page summarizes public guidance in plain language. If anything here differs from the official source, the official source controls.