> [llms.txt](https://getlemma.com/llms.txt) # Multi-entity banking: the complete guide MSOs or DSOs and their Professional Corporations operate as separate legal entities, but most banks force you to manage them as separate, siloed accounts. Lemma is purpose-built for MSO-PC or DSO-PC structures. ## What is a multi-entity structure? A Management Services Organization (MSO) is an administrative entity that provides non-clinical services (billing, scheduling, HR, facilities management) to one or more Professional Corporations (PCs). The MSO typically charges a management fee of 10–30% of the PC's net revenue. A Professional Corporation (PC) is the licensed entity through which clinical care is delivered and billed. Each PC has its own tax ID, its own payer contracts, and its own bank accounts. Multi-entity structures are common in dental, behavioral health, physical therapy, and multi-specialty groups because they allow non-clinician investors to participate in the administrative side of healthcare while keeping clinical operations under licensed control. ## Why traditional banks fail multi-entity groups Traditional banks were designed for single-entity businesses. Multi-entity groups face five recurring failures: - **Siloed accounts.** Each PC requires a separate bank login, separate statements, and separate reconciliation. Consolidated visibility requires manual spreadsheet work. - **Slow entity setup.** New PC accounts can take 7–15 business days to open, creating delays when adding locations or restructuring entities. - **Per-entity fees.** Monthly maintenance fees of $20–50 per account compound quickly across a multi-PC group. A 10-PC group pays $2,400–$6,000/year in fees before a single transaction. - **FDIC gaps.** At a standard bank, a group holding $2M across 8 PCs may be covered for only $250K per depositor, depending on ownership structure. The remainder is uninsured. - **Manual intercompany transfers.** Moving funds from a PC to the MSO requires ACH or wire initiation, with 1–3 day settlement and a per-transfer cost. ## FDIC coverage for multi-entity structures FDIC coverage in a multi-entity structure is determined by ownership and titling, not just by the number of accounts. Many multi-entity groups discover, often too late, that multiple accounts at the same bank consolidate under a single coverage limit. | Scenario | Insured amount (on $2M balance) | | ------------------------------------- | -------------------------------------------------- | | Traditional bank (single institution) | $250,000–$750,000 depending on ownership structure | | FDIC sweep network | Up to $10,000,000 per entity | | Lemma (sweep network) | Up to $10,000,000 per entity | ## Six criteria for evaluating banks for multi-entity groups 1. **Multi-entity onboarding speed.** How quickly can new PC entities be added? Look for same-day or next-business-day activation, not a 7–15 day approval process. 2. **Consolidated reporting.** Can your CFO see all entity balances, transactions, and cash positions in a single view? Manual consolidation is a monthly cost center. 3. **Automated sweep functionality.** Does the platform support threshold-based automated fund movement between the MSO and PCs? Manual intercompany transfers are slow and expensive. 4. **FDIC coverage transparency.** Exactly how much is insured per entity and in aggregate? Ask for written documentation, not verbal assurance. 5. **Healthcare-specific features.** Lockbox, virtual accounts, ERA/EOB matching, and payer-specific routing. These are table stakes for healthcare MSOs, not premium add-ons. 6. **All-in transparent pricing.** Total cost of ownership across all entities, including per-account fees, ACH fees, wire fees, and lockbox, not just the headline monthly fee. ## How Lemma is built for multi-entity groups Lemma is purpose-built for healthcare groups operating across multiple legal entities. Each PC gets its own account with its own routing number for direct EFT receipt from payers. The MSO and all PCs are visible in a single Command Center dashboard. Automated cash sweeps move funds between entities based on configurable thresholds, with no manual wire initiation required. New entities can be activated in minutes, not days. FDIC coverage through Lemma's sweep network extends to $10M per entity, not the $250K you'd get at a traditional bank. For an MSO managing 8 PCs, that means $80M in potential coverage versus $250K in the worst case at a single institution. In short: $10M FDIC per entity via sweep network, 5-minute entity activation, one dashboard for all entities. ## Common questions **Do we need separate Lemma accounts for each PC?** Yes. Each PC should have its own account with its own routing number, so payer EFTs route directly to the correct entity. But all accounts are managed from a single dashboard, so your team doesn't need to log into multiple separate bank portals. **Can Lemma handle automated management fee sweeps from PCs to the MSO?** Yes. Lemma's cash sweep feature supports threshold-based automatic fund movement between accounts. You can configure a daily sweep rule that automatically moves excess funds from each PC to the MSO, with no manual wire initiation and no delays. **How long does it take to add a new PC entity to Lemma?** New entities can typically be activated in minutes with basic business documentation. This is significantly faster than the 7–15 business day setup time at most traditional banks. **What documentation is needed to open MSO and PC accounts?** You'll need standard business formation documents for each entity: articles of incorporation, EIN, and beneficial ownership information for principals. Lemma's onboarding flow is designed to handle multi-entity groups efficiently. **How does FDIC coverage work across our entities?** Each PC and the MSO are treated as separate depositors. Through Lemma's sweep network, each entity receives FDIC coverage up to $10M, meaning a 10-entity group has up to $100M in total potential coverage. **Does Lemma integrate with our billing system for ERA/EOB matching?** Lemma's lockbox captures ERA 835 data and paper EOB details. The payment data is surfaced in your dashboard and can be exported for import into most major billing platforms. Direct EHR/billing system integrations are on the product roadmap. ## Related - [MSO banking and treasury management](/mso-banking) - [MSO-PC banking](/mso-pc-banking) - [Business banking](/business-banking) · [Pricing](/pricing) ## Your bank doesn't know healthcare. Lemma does. Free for a single entity, $50/month per entity for groups. Open in 5 minutes. It's the last bank switch you'll make. [Book a demo](https://calendly.com/d/ct72-djp-r7w) or [open a free account](https://app.getlemma.com/sign-up).