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Can a non-physician own a med spa in South Dakota?

Ownership · part of The Practice Perimeter

⛔ SDCL §47-11-3 CLOSES THE OBVIOUS WORKAROUND, AND IT IS THE SENTENCE TO READ FIRST. All of the officers, directors, and shareholders of a medical corporation shall AT ALL TIMES be persons licensed pursuant to the Medical Practice Act. NO PERSON WHO IS NOT SO LICENSED SHALL HAVE ANY PART IN THE OWNERSHIP OR CONTROL of such corporation — and no proxy to vote any shares may be given to a person who is not so licensed, which closes the route of leaving title with a physician while moving the votes elsewhere. In a corporation formed under the chapter, one or more persons may act as the SOLE stockholders, directors or officers. And persons licensed under the Medical Practice Act, corporations formed under chapter 47-11, or any combination of them, may form a LIMITED LIABILITY COMPANY to own, operate and maintain an establishment for the study, diagnosis and treatment of human ailments and injuries. Chapter 36-4 then names the arrangement itself among the acts that are unprofessional or dishonorable conduct: SPLITTING FEES, or giving to any person furnishing a patient any portion of the fees received from the patient, or paying or giving any person consideration of any kind for furnishing a patient — and, separately, employing what is known as cappers or steerers.

Drawn from 5 verified rules in this section · regulatory monitoring, not legal advice

The rest of what South Dakota says on this

Every other rule we have verified under ownership & corporate practice of medicine, each linked to its primary source.

  • All of the officers, directors, and shareholders of a corporation subject to this chapter shall at all times be persons licensed pursuant to the Medical Practice Act. No person who is not so licensed shall have any part in the ownership or control of such corporation, nor may any proxy to vote any shares of such corporation be given to a person who is not so licensed.

    S.D. Codified Laws §47-11-3 · verified Sep 3, 2026

  • In any corporation formed under this chapter one or more persons may act as the sole stockholders, directors, or officers of such corporation. Persons licensed pursuant to the Medical Practice Act and corporations formed under chapter 47-11, or any combination thereof, may form a limited liability company to own, operate, and maintain an establishment for the study, diagnosis, and treatment of human ailments and injuries, whether physical or mental.

    S.D. Codified Laws §47-11-1 · verified Sep 3, 2026

  • The term, unprofessional or dishonorable conduct, as used in this chapter includes: Splitting fees or giving to any person furnishing a patient any portion of the fees received from the patient or paying or giving to any person consideration of any kind for furnishing a patient.

    S.D. Codified Laws §36-4-30(10) (Acts considered unprofessional conduct — splitting fees) · verified Sep 7, 2026

  • The term, unprofessional or dishonorable conduct, as used in this chapter includes: Employing what is known as cappers or steerers.

    S.D. Codified Laws §36-4-30(2) (Acts considered unprofessional conduct — cappers or steerers) · verified Sep 7, 2026

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← All South Dakota rules and changes · MedSpaRadar is regulatory monitoring and reference, not legal, medical, or compliance advice. Verify against the linked primary source and consult qualified counsel before acting — rules change and turn on your specific facts. Legislative data via LegiScan (CC BY 4.0).