2010 Pennsylvania Code
Title 15 - CORPORATIONS AND UNINCORPORATED ASSOCIATIONS
Chapter 89 - Limited Liability Companies
8996 - Restrictions.

     § 8996.  Restrictions.
        (a)  Purposes of restricted professional companies.--A
     restricted professional company shall not engage in any business
     other than conducting the practice of the restricted
     professional service or services for which it was specifically
     organized, except that a restricted professional company may:
            (1)  Own real and personal property necessary for or
        appropriate or desirable in the fulfillment or rendering of
        its specific restricted professional service or services and
        it may invest its funds in real estate, mortgages, stocks,
        bonds or any other type of investment.
            (2)  Be a partner, shareholder, member or other owner of
        a partnership, corporation, limited liability company or
        other association engaged in the business of rendering the
        restricted professional service or services for which the
        restricted professional company was organized.
        (b)  Ownership and governance of restricted professional
     companies.--Except as otherwise provided by a statute, rule or
     regulation applicable to a particular profession, all of the
     ultimate beneficial owners of membership interests in and all of
     the managers, if any, of a restricted professional company shall
     be licensed persons.
        (c)  Rendering restricted professional services.--
            (1)  A restricted professional company may lawfully
        render restricted professional services only through licensed
        persons. The company may employ persons not so licensed but
        those persons shall not render any restricted professional
        services rendered or to be rendered by it.
            (2)  Paragraph (1) shall not be interpreted to preclude
        the use of clerks, secretaries, nurses, administrators,
        bookkeepers, technicians and other assistants or
        paraprofessionals who are not usually and ordinarily
        considered by law, custom and practice to be rendering the
        restricted professional service or services for which the
        restricted professional company was organized nor to preclude
        the use of any other person who performs all his employment
        under the direct supervision and control of a licensed
        person. A person shall not under the guise of employment
        render restricted professional services unless duly licensed
        or admitted to practice as required by law.
            (3)  Notwithstanding any other provision of law, a
        restricted professional company may charge for the restricted
        professional services rendered by it, may collect those
        charges and may compensate those who render the restricted
        professional services.
        (d)  Application.--For purposes of applying subsection (a):
            (1)  The practice of the restricted professional service
        of public accounting shall be deemed to include:
                (i)  the provision of one or more kinds of services
            involving the use of accounting or auditing skills,
            including, without limitation, the issuance of reports on
            financial statements;
                (ii)  the provision of one or more kinds of
            management advisory, financial advisory or consulting
            services; and
                (iii)  the preparation of tax returns or the
            furnishing of advice on tax matters.
            (2)  A restricted professional company shall not engage
        in the conduct of the business of or own directly or
        indirectly any equity interest in:
                (i)  A clinical laboratory as defined in section 2 of
            the act of September 26, 1951 (P.L.1539, No.389), known
            as The Clinical Laboratory Act.
                (ii)  A blood bank as defined in section 3 of the act
            of December 6, 1972 (P.L.1614, No.335), known as the
            Pennsylvania Blood Bank Act.
                (iii)  A health care facility as defined in section
            802.1 of the act of July 19, 1979 (P.L.130, No.48), known
            as the Health Care Facilities Act.
                (iv)  An ambulatory service facility as defined in
            section 3 of the act of July 8, 1986 (P.L.408, No.89),
            known as the Health Care Cost Containment Act.
                (v)  A kidney treatment center or a hemodialysis
            center.
            (3)  The practice of the restricted professional service
        of law shall be deemed to include the following activities
        when conducted incidental to the practice of law:
                (i)  serving as an attorney-in-fact, guardian,
            custodian, executor, personal representative, trustee or
            fiduciary;
                (ii)  serving as a director or trustee of a
            corporation for profit or not-for-profit, manager of a
            limited liability company or a similar position with any
            other form of association;
                (iii)  testifying, teaching, lecturing or writing
            about any topic related to the law;
                (iv)  serving as a master, receiver, arbitrator or
            similar official;
                (v)  providing actuarial, insurance, investment,
            estate and trust administration, tax return preparation,
            financial and other similar services and advice; and
                (vi)  conducting intellectual property and other real
            and personal property title searches and providing other
            title insurance agency services.
     (June 22, 2001, P.L.418, No.34, eff. 60 days)

        2001 Amendment.  Act 34 amended subsec. (b) and added subsec.
     (d)(3).
        Cross References.  Section 8996 is referred to in sections
     8911, 8941, 8997, 8998 of this title.