It is without question that one cannot achieve status as a licensed professional without a tireless work ethic, educational feats, and hours of practice and examinations. Once licensure is attained, individuals may choose to embark on a journey towards business formation to render their professional services. But what are the necessary steps?
California General Corporation Law and the Moscone-Knox Professional Corporation Act require professional licensees who wish to render professional services, form a Professional Corporation pursuant to California General Corporations Code §§ 130401-13410. Below we discuss the who, what, when, where, and how of Professional Corporation formation and how Simas and Associates, Ltd. can assist you.
Who must register their business as a Professional Corporation?
As described above, a Professional Corporation is a business entity (such as an LLC, general-stock corporation, C-Corporation, etc.), specifically pertaining to licensed professionals. California state laws require these licensed professionals to form this business entity type to render services legally. The Moscone-Knox Professional Corporation Act (“Act”) defines who can own or operate these corporations. In addition, the Act provides further information regarding the legal business entity formed around rendering their professional services. Examples of licensed professionals required to form a Professional Corporation under the Act includes:
- Accountants (California Business & Professions Code §§ 5150-5158)
- Attorneys at Law (California Business & Professions Code §§ 6000-6228)
- Dentists (California Business & Professions Code, §§ 1800-1808)
- Doctors (California Business & Professions Code §§ 2000-2521)
- Physical Therapists (California Business & Professions Code §§ 2690 – 2696)
- Veterinarians (California Business & Professions Code §§ 4800-4917)
What is a Professional Corporation and what are professional services?
A California Professional Corporation is a corporation organized under the General Corporation Law that provides professional services or “is engaged in rendering professional services in a single profession” (California Corporations Code section 13401(b)).
Professional services are defined as any type of professional service that requires a certification, license, or registration pursuant to the Business and Professional Code, the Chiropractic Act, or the Osteopathic Act (California Corporations Code section 13401(a)).
When do I need to register my Professional Corporation?
A licensed professional must register their business as a Professional Corporation prior to forming a business derived from their own (and others’) professional services.
Where do I register my Professional Corporation?
Professional Corporations are registered with the California Secretary of State. Professional Corporations must register with the California Secretary of State by mail or in person submission at the California Secretary of State’s business entity office. Electronic submissions are not accepted.
How do I register my Professional Corporation and how can Simas & Associates, Ltd. help?
There are multiple steps necessary to register your Professional Corporation with the California Secretary of State but the first is to file your Articles of Incorporation. Simas & Associates, Ltd. can assist with registering your Professional Corporation by completing the following documents on your behalf:
- Articles of Incorporation
- EIN Application
- S-Corporation Election Form
- Standard Bylaws
- Share Certificate(s)
- Agent for Service of Process
- Annual Meeting Minutes
- Statement of Information
- Action of the Incorporator
- All other general counsel forms, corporate compliance, and Professional Corporation legal advice