Professional Corporations

Corporate Setup for Attorneys, Doctors,
Chiropractors, and other Licensed Professionals.

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What is a Professional Corporation?

A Professional Corporation (PC) is a specialized legal structure designed for professionals such as attorneys, doctors, engineers, and accountants. It offers unique benefits and safeguards for those seeking to operate their practice within a corporate framework.

As a professional, forming a PC provides a distinct advantage by separating personal assets from professional liabilities. This means that in the event of a lawsuit or business debt, your personal assets are shielded, ensuring your financial security and peace of mind.

Additionally, a PC allows you to take advantage of certain tax benefits and deductions, maximizing their overall profitability. By incorporating, professionals gain the flexibility to allocate income, establish retirement plans, and employ strategic tax planning strategies.

Our experienced attorneys specialize in assisting professionals in the formation and management of their professional corporations. We understand the intricacies of the legal requirements and can guide you through the entire process with ease.

Who needs a professional corporation in California?

The professionals who commonly establish PCs in California include, but are not limited to:

Attorneys: California State Bar rules mandate that attorneys practice law as a corporation, typically in the form of a PC. This requirement helps ensure professional accountability and liability protection for both clients and attorneys.

Physicians, Surgeons, and Medical Practitioners: Healthcare professionals, including doctors, surgeons, physicians, and certain specialized medical practitioners, must form a PC to provide their services. This requirement is designed to regulate the practice of medicine, protect patients’ interests, and provide a framework for professional liability.

Certified Public Accountants (CPAs): CPAs in California are typically required to operate their accounting practices as PCs. The PC structure offers liability protection for the accountants and ensures that the highest professional standards are maintained in the provision of accounting services.

Architects: Architects in California often form PCs to offer architectural services. A PC provides liability protection for architects and enables them to comply with licensing regulations and professional standards specific to their field.

Engineers: Professional engineers may be required to establish a PC to practice engineering in California. The PC structure helps ensure that engineers adhere to professional standards, maintain liability protection, and comply with licensing requirements.

Psychologists and Therapists: Mental health professionals, such as psychologists and therapists, may be required to form a PC to provide their services. This requirement helps regulate the practice of psychology, ensures professional accountability, and protects the interests of clients.

Here is a Comprehensive List of Professional Corporations in California:

  • Law Corporation
  • Architecture Corporation
  • Court Reporters Corporation
  • Accounting Corporation
  • Pharmacy Corporation
  • Engineering Corporation
  • Medical Corporation
  • Podiatric Medical Corporation
  • Psychological Corporation
  • Speech-language Pathology Corporation
  • Audiology Corporation
  • Nursing Corporation
  • Marriage and Family Therapist Corporation
  • Licensed Clinical Social Worker Corporation
  • Physician Assistants Corporation
  • Optometric Corporation
  • Chiropractic Corporation
  • Acupuncture Corporation
  • Naturopathic Doctor Corporation
  • Dental Corporation
  • Professional Clinical Counselor Corporation
  • Physical Therapy Corporation
  • Registered Dental Hygienist in Alternative Practice Corporation
  • Clinical Counselor Corporation
  • Midwifery Corporation
  • Contractor Corporation

It’s important to note that the requirement for a PC may vary depending on the specific licensing board and regulations governing each profession. Professionals in these fields should consult with their respective licensing boards or seek legal advice to ensure compliance with the specific requirements applicable to their practice in California.

Frequently Asked Questions about Professional Corporations

No. In California, two different professionals cannot operate under the same professional corporation (PC). The California Corporations Code requires that shareholders of a PC must be licensed professionals within the same field. This means that a PC can only be formed and owned by professionals who hold the same professional license.
While it’s technically possible to form a PC on your own, it’s highly recommended to seek legal assistance. An experienced attorney can navigate the complex legal requirements, ensure compliance, and provide valuable guidance throughout the process.
Yes, there are specific requirements that vary by jurisdiction. Generally, professionals must obtain the necessary licenses, certifications, and approvals from their respective governing bodies. Additionally, they must adhere to state regulations and file appropriate documents with the Secretary of State.
Yes, it is possible to convert your existing business into a professional corporation. However, the process can be complex and requires careful consideration of legal and tax implications. It is advisable to consult with an attorney who specializes in professional corporations to ensure a smooth transition.

No.  California law states that “No provision in this title shall be construed as granting authorization to a domestic or foreign limited liability company to engage in the provision of professional services, as delineated in subdivision (a) of Section 13401 and in Section 13401.3, within the boundaries of this state.”

As a duly licensed professional in the state of California, you must structure your private practice under one of the following options: a sole proprietorship, a professional corporation, or a registered limited liability partnership.   When a business is not a partnership, a professional corporation is the most commonly used option.

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