What limits does Tennessee place on a med spa's business structure?
Ownership · part of The Practice Perimeter
Short answer
The cited rules do not settle this — no entity type is required; they only say that if you use a Medical Professional Corporation, shares may be held by licensed physicians, physician-owned entities, or the closed statutory list of other health professionals.
Only two categories may form and own shares in a Medical Professional Corporation doing business in Tennessee: PHYSICIANS licensed under Title 63 chapter 6 or 9, or licensed in another state; and partnerships, MPCs or MPLLCs in which ALL partners, shareholders, members or holders of financial rights are themselves such physicians — or entities directly or indirectly owned by them. The rule follows ownership through the stack.
Tenn. Comp. R. & Regs. 0880-02-.20(1)(b) · verified Sep 2, 2026 · regulatory monitoring, not legal advice
Related Tennessee rules
The exception is a closed statutory list: the health care professional combinations specifically enumerated in T.C.A. § 48-101-610, and professionals authorized by §§ 48-101-610 or 48-248-401 to own shares or hold financial rights. A profession not on that list does not qualify, and a lay investor is on no list.
Tenn. Comp. R. & Regs. 0880-02-.20(1)(b)2.(ii) · verified Sep 2, 2026
One piece of administrative relief worth knowing: a Medical Professional Corporation NEED NOT file its Charter or its Annual Statement of Qualifications with the Board. The entity is governed by Title 48 chapter 101 part 6; the Board regulates the physicians inside it rather than the paperwork of the company.
Tenn. Comp. R. & Regs. 0880-02-.20(1)(a) · verified Sep 2, 2026
How other states answer this
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- Illinois
- Indiana
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- Washington
- West Virginia
- Wisconsin
- Wyoming
Related Tennessee questions
- Can a non-physician own a med spa in Tennessee?
- Can a management company run the business side of a med spa in Tennessee?
- Can private equity invest in a med spa in Tennessee?
- In Tennessee, may a non-clinical owner or manager be paid a share of revenue?
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← All Tennessee 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).