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In South Carolina, may a non-clinical owner or manager be paid a share of revenue?

Ownership · part of The Practice Perimeter

Short answer
The cited rules do not settle this — the surveyed chapters contain no fee-splitting ban, but only licensed individuals may hold shares in a professional corporation, and the board's unprofessional-conduct ground is still applied case by case.

⚠️ South Carolina states no fee-splitting prohibition in the chapters that would carry one. a survey of the Board of Medical Examiners' enumerated misconduct grounds (§40-47-110(B), read in full), the definitions section of the Medical Practice Act (§40-47-20), the Professional Association Act (Chapter 19 of Title 33) and the Cosmetology chapter (Chapter 13 of Title 40) returns no provision on fee-splitting, dividing a fee, rebates, kickbacks, or paying a commission for a referral. South Carolina restricts WHO MAY OWN a professional corporation and does not separately regulate how revenue is shared with a non-clinical manager. An operator should read this as an absence in these four chapters, not as permission: §40-47-110(B)(9) still reaches "dishonorable, unethical, or unprofessional conduct", which the board applies case by case.

S.C. Code §40-47-110(B) (surveyed), §40-47-20 (surveyed), S.C. Code Title 33 ch. 19 (surveyed), S.C. Code Title 40 ch. 13 (surveyed) · verified Sep 7, 2026 · regulatory monitoring, not legal advice

Related South Carolina rules

  • A professional corporation may issue shares, fractional shares, and rights or options to purchase shares only to individuals who are authorized by law in this or another state to render a professional service described in the corporation’s articles of incorporation; general partnerships in which all the partners are qualified persons with respect to the professional corporation and in which at least one partner is authorized by law in this state to render such a professional service; and professional corporations, domestic or foreign, authorized by law in this State to render such a professional service.

    S.C. Code §33-19-200(a) · verified Sep 3, 2026

  • If a licensing authority with jurisdiction over a profession considers it necessary to prevent violation of the ethical standards of the profession, the authority by rule may restrict or condition, or revoke in part, the authority of professional corporations to issue shares.

    S.C. Code §33-19-200(b) · verified Sep 3, 2026

All 4 cited South Carolina rules on ownership & corporate practice of medicine →

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← All South Carolina rules and changes · MedSpaRadar is regulatory monitoring and reference: it summarizes public laws, regulations and agency actions and links each to its source. It is not legal, medical, or compliance advice, and using it creates no attorney-client relationship. A summary can lag its source or leave out detail, and monitoring itself can be interrupted — so an absence of alerts means nothing reached you, not that nothing happened. Read the cited source, check its effective date, and confirm any change to your operations or clinical practice with qualified health-law counsel and your medical director. Legislative data via LegiScan (CC BY 4.0).