Someone asked me if I could let him know the “standard” distance/time for non-compete clauses. Unfortunately, there is no standard. My attorney said two years is pretty much the limit for time of the restriction against competing (more than two years, in other words, is unreasonable restriction of trade), but mileage depends on the area. In a city, 10-15 miles is probably the furthest limit, while 20-30 miles might not be unreasonable in a rural area. Look carefully at what I call the “circle of practice” to get an idea of what area might be reasonable for someone to draw patients from.
For more information, see the new PLUS edition of Planning for Practice Success.
Q: I’m setting up my LLC and am being asked for the name of the Registered Agent. Who is this?
A: The registered agent is the person who received legal correspondence and legal processes, like tax documents and requests for information from government entities. The registered agent is usually located at the LLC’s listed office, but you can have someone act as your registered agent, as long as you trust that person to forward you these important documents.
When you are starting out, you should be the registered agent, or get a trusted family member or your spouse to do this, so you are sure you are receiving documents.
Read more about forming an LLC in Planning for Practice Success
Q: What questions do I ask when meeting with a banker?
A: Here are some suggestions:
1. Have you worked with other chiropractors or other health care providers?
2. How many commercial loans do you do a month?
3. Do you work with SBA guarantees? How many SBA loans do you do a month?
4. Wil you require a co-signer?
5. What services do you provide to borrowers? Of these services, which are given ‘free’ – for example, free checking? Do you provide credit/debit card processing services?
6. How long does the funding process take? How soon do you disburse funds after the loan is “approved”?
I’m sure you can think of others, too. Let me know what other questions you think you should ask a banker.
