3 Steps to Starting Your Physician Assistant (PA) Corporation (2024)
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by Sam Mollaei
- Start Your Business Here »
If you’re a physician assistant (PA), you SHOULD form a Professional Corporation taxed as an S-Corporation.
California law prohibits physician assistants (PA) from forming LLCs or traditional general corporations from their physician assistant practices. Instead, they must register as a Professional Corporation.
If done incorrectly, your Professional Corporation can be rejected by the Secretary of State, leaving you vulnerable to potential lawsuits and fines from various government agencies, and even the California State Board.
As a Business Lawyer for Professionals, I’ve assisted hundreds of professionals just like you start their Professional Corporation and I can definitely help you start yours.
If you’re a physician assistant looking to start your Professional Corporation, email me at sam@mollaeilaw.com or talk to me directly at 818-925-0002
What is a Physician Assistants Corporation?
A Professional Physician Assistants Corporation is a professional corporation which is registered with the California Secretary of State and the Medical Board of California.
In California, all professional corporations must be registered with the corresponding governmental agency that is tasked to manage their profession. Professional Physician Assistants Corporation must hold a certificate of registration from the Medical Board of California.
3 Steps to Starting a Professional Physician Assistants Corporation
The 3 steps to starting a Professional Physician Assistants Corporation are:
- File the Articles of Incorporation of a Professional Corporation with the Secretary of State to form the Professional Corporation
- Notify your Profession’s state agency that manages your profession, hold a Board of Director’s Meeting and appoint directors, get your Professional Corporation Bylaws drafted, apply for your EIN, file your Statement of Information, file Form 2553 for S-Corporation tax election, pay California corporate taxes to the California Franchise Tax Board, register with the EDD if you will be hiring employees, and apply for local business registration and licenses.
- Do all the steps above yourself or hire a Business Lawyer to do everything for you.
If you’re a lawyer looking to form your Professional Corporation, email me at sam@mollaeilaw.com or talk to me directly at 818-925-0002
Benefits of a Physician Assistant Professional Corporation
Incorporating a Professional Physician Assistants Corporation in California will limit your personal liability against creditors and lawsuits, minimize the self-employment taxes of the shareholders, allow you to build corporate business credit, and much more.
Name Requirements of a Physician Assistant Professional Corporation
The Professional Physician Assistants Corporation’s name must contain the words “physician assistant”. It must also include a corporate ending such as: “A Professional Corporation”, “Professional Corporation”, “APC”, “A.P.C.” “PC”,”P.C.”,”Prof. Corp.”,”Inc.”, “Incorporated”, “Corporation”, “A California Professional Corporation” or words or abbreviations which denote its corporate existence.
Also, “LLC” is not permitted as a corporate designation, and California does not certify an “LLC” for the purposes of practicing physician assistant medicine, based on underlying Corporate Code concerning Professional Corporations.
Who Can Be a Shareholder Of The Professional Physician Assistants Corporation?
At least 51 percent of the shares must be owned by the physician assistant. The remaining 49 percent may be owned by Licensed physicians and surgeons, Registered nurses, Licensed acupuncturists, Naturopathic doctors, and Licensed midwives. The number of licensed persons cannot exceed the number of physician assistants, and cannot exceed a combined share total of 49 percent.
Any shares issued to others who do not are not the professionals listed above are void.
Also, shares in the Professional Physician Assistants Corporation may only be transferred to those who are licensed to practice registered physician assistant, to a shareholder of the corporation or to the Professional Physician Assistants Corporation itself.
If a shareholder becomes ineligible to practice physician assistant services in California or is legally disqualified from rendering professional services to the Professional Physician Assistants Corporation, she must sell or transfer her shares to a qualified shareholder within 90 days of her ineligibility or disqualification.
Can a Physician Assistants Corporation Be Opened As An LLC In California?
A Physician Assistants Corporation can’t be opened as an LLC in California. The California Corporations Code does not certify LLCs to practice podiatry. For a physician assistant to provide professional services in California, they must open a Professional Corporation.
Can a Professional Physician Assistants Corporation Use a DBA Or Fictitious Name?
In California, a Professional Physician Assistants Corporation can use a fictitious name or DBA for the Corporation so long as it is not deceptive, misleading, or confusing. The fictitious name must include the designation “physician assistant”.
How To Start a Physician Assistants Professional Corporation
Here are the 9 steps you must take to form the Professional Podiatry Corporation:
- File the Articles of Incorporation with Secretary of State and pay the filing fee. The filing fee is currently $100. You must also state within its Articles of Incorporation that its purpose is “Physician Assistant”.
- Conduct a corporate meeting where you will issue shares and elect officials and directors for the Professional Physician Assistants Corporation
- Create custom Professional Physician Assistants Corporation bylaws
- Apply for an EIN
- File the Statement of Information with the Secretary of State
- File Form 2553 for S-Corporation Tax Election for the Professional Physician Assistants Corporation
- Pay California Corporate Taxes and Fees to the California Franchise Tax
- Register with the EDD if you will be hiring employees
- Apply for local business registration and licenses
If you’re interested in forming your California Professional Corporation, email me at at sam@mollaeilaw.com or talk to me directly at 818-925-0002
What To Do Next
While these following these steps above might seem straight forward, one mistake while creating your Professional Corporation can cause your corporation to be rejected by the Secretary of State, costing you money and time.
As a Business Lawyer for Professionals, I’ve assisted hundreds of professionals just like you start their Professional Physician Assistants Corporation and I can definitely help you with yours.
Looking to form your Professional Corporation? Email me at sam@mollaeilaw.com or talk to me directly at 818-925-0002
3 Steps to Starting Your Speech Language Pathology Corporation (2025)
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- Start Your Business Here »
If you’re a speech language pathologist in California, you SHOULD form a Professional Corporation taxed as an S-Corporation.
California law prohibits speech language pathologist from forming LLCs or a traditional corporations for their speech language pathology practice. Instead, speech language pathologists who are trying to start their own speech therapy practice must register as a Professional Corporation.
If done incorrectly, your Professional Corporation can be rejected by the Secretary of State, leaving you vulnerable to potential lawsuits and fines from various government agencies, and even the California Speech-Language Pathology Board of California.
As a Business Lawyer for Professionals, I’ve assisted hundreds of speech-language pathology professionals just like you start their Professional Corporation and I can definitely help you start yours.
If you’re a speech language pathologist looking to start your Professional Corporation, email me at sam@mollaeilaw.com or talk to me directly at 818-925-0002
What is a Speech Language Pathology Professional Corporation
A professional speech language pathology Corporation is a professional corporation which is registered and hold a certificate with the California Secretary of State and the Speech-Language Pathology and Audiology Board.
3 Steps to Starting a Professional Speech Language Pathology Corporation
The 3 steps to starting a Professional Speech Language Pathology Corporation are:
- File the Articles of Incorporation of a Professional Corporation with the Secretary of State to form the Professional Corporation
- Notify your Profession’s state agency that manages your profession, hold a Board of Director’s Meeting and appoint directors, get your Professional Corporation Bylaws drafted, apply for your EIN, file your Statement of Information, file Form 2553 for S-Corporation tax election, pay California corporate taxes to the California Franchise Tax Board, register with the EDD if you will be hiring employees, and apply for local business registration and licenses.
- Do all the steps above yourself or hire a Business Lawyer to do it for you correctly and efficiently the first time.
If you’re a speech language pathologist looking to form your Professional Corporation, email me email me at sam@mollaeilaw.com or talk to me directly at 818-925-0002
Benefits Of Starting A Professional Speech Language Pathology Corporation
Starting your own speech language pathology corporation in California will limit your personal liability against creditors and lawsuits, minimize the self-employment taxes of the shareholders, allow you to build corporate business credit, and much more.
Name Requirement For A Professional Speech Language Pathology Corporation
The speech therapy business name must include one of the following; “speech pathologist,” “speech pathology,” “speech therapy,” “speech correction,” “speech correctionist,” “speech therapist,” “speech clinic,” “speech clinician,” “language pathologist,” “language pathology,” “logopedics,” “logopedist,” “communicology,” “communicologist,” “aphasiologist,” “voice therapy,” “voice therapist,” “voice pathology,” or “voice pathologist,” “language therapist,” or “phoniatrist,” or any similar titles.
It must also include a corporate ending such as: “A Professional Corporation”, “Professional Corporation”, “APC”, “A.P.C.” “PC”,”P.C.”,”Prof. Corp.”,”Inc.”, “Incorporated”, “Corporation”, “A California Professional Corporation” or words or abbreviations which denote its corporate existence.
Also, “LLC” is not permitted as a corporate designation, and California does not certify an “LLC” for the purposes of practicing speech language pathology, based on underlying Corporate Code concerning Professional Corporations.
Who Can Be A Shareholder Of The Professional Speech Language Pathology Corporation?
Each director, shareholder, and officer of the professional Speech Language Pathology corporation MUST be licensed to practice speech language pathology in California.
Shares of stock in the speech language pathology corporation can only be issued to people who are licensed to practice speech language pathology. However, licensed audiologists may also hold shares, or be officers, directors, or professional employees as long as shares owned by licensed audiologists do not total more than 49% of all shares in the corporation.
Any shares shares issued to others who do not practice speech language pathology or audiology are void.
Also, shares in the speech language pathology corporation may only be transferred to those who are licensed to practice speech language pathology, to a shareholder of the corporation or to the professional speech language pathology corporation itself.
If a shareholder becomes ineligible to practice speech language pathology in California or is legally disqualified from rendering professional services to the speech language pathology corporation, she must sell or transfer her shares to a qualified shareholder within 90 days of her ineligibility or disqualification.
Can A Speech Language Pathology Corporation Be Opened As An LLC In California?
A speech language pathology corporation CANNOT be opened as an LLC in California. The California Corporations Code does not certify LLCs (Limited Liability Companies) for the purpose of practicing speech language pathology.
For a speech language pathologist to provide professional services in California, they must open a Professional Corporation.
Can A Speech Language Pathology Corporation Use a DBA Or Fictitious Name?
In California, a speech language pathology corporation can use a fictitious name so long as they file a fictitious business name statement within 40 days of starting the speech language pathology corporation.
You must also make a fictitious name filing in every local county recorder’s office for which you are practicing.
How To Start a California Speech Language Pathology Corporation
- File the Articles of Incorporation with Secretary of State and pay the filing fee. The filing fee is currently $100. You must also state within its Articles of Incorporation that its purpose is “Speech Language Pathology”.
- Conduct a corporate meeting where you will issue shares and elect officials and directors for the Professional Speech-Language Pathology Corporation
- Create custom Speech-Language Pathology Corporation bylaws
- Apply for an EIN
- File the Statement of Information with the Secretary of State
- File Form 2553 for S-Corporation Tax Election for the Professional Speech-Language Pathology Corporation
- Pay California Corporate Taxes and Fees to the California Franchise Tax
- Register with the EDD if you will be hiring employees
- Apply for local business registration and licenses
What To Do Next
While these following these steps above might seem straight forward, one mistake while creating your Professional Corporation can cause your corporation to be rejected by the Secretary of State, costing you money and time.
As a Business Lawyer for Professionals, I’ve assisted hundreds of professionals just like you start their California Speech-Language Pathology Corporations and I can definitely help you with yours.
Looking to form your Professional Corporation? Email me email me at sam@mollaeilaw.com or talk to me directly at 818-925-0002
3 Steps to Starting Your Optometric Corporation (2023)
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- Start Your Business Here »
If you’re a licensed optometrist, you SHOULD form an Optometric Professional Corporation taxed as an S-Corporation.
If you’re an optometrist, you’re prohibited from forming an LLC or a traditional corporation for your optometric practice and instead must register as a Professional Corporation.
If done incorrectly, your Professional Corporation can be rejected by the Secretary of State, leaving you vulnerable to potential lawsuits and fines from various government agencies, and even the California State Board.
As a Business Lawyer for Professionals, I’ve assisted hundreds of professionals just like you start their Professional Corporation and I can definitely help you start yours.
If you’re a licensed optometrist looking to start your Professional Corporation, email me at sam@mollaeilaw.com or talk to me directly at 818-925-0002
Optometric Professional Corporation
A Professional Optometric Corporation Corporation is a professional corporation which is registered with the California Secretary of State and the California State Board of Optometry.
In California, all professional corporations must be registered with the corresponding governmental agency that is tasked to manage their profession. California Professional Optometric Corporations must hold a certificate of registration from the California State Board of Optometry.
3 Steps to Starting an Optometric Corporation
The 3 steps to starting an Optometric Professional Corporation are:
- File the Articles of Incorporation of a Professional Corporation with the Secretary of State to form the Professional Corporation
- Notify your Profession’s state agency that manages your profession, hold a Board of Director’s Meeting and appoint directors, get your Professional Corporation Bylaws drafted, apply for your EIN, file your Statement of Information, file Form 2553 for S-Corporation tax election, pay California corporate taxes to the California Franchise Tax Board, register with the EDD if you will be hiring employees, and apply for local business registration and licenses.
- Do all the steps above yourself or hire a Business Lawyer to do everything for you.
If you’re a lawyer looking to form your Professional Corporation, email me at sam@mollaeilaw.com or talk to me directly at 818-925-0002
Benefits Of Starting an Optometric Professional Corporation
Incorporating a Professional Optometric Corporation in California will limit your personal liability against creditors and lawsuits, minimize the self-employment taxes of the shareholders, allow you to build corporate business credit, and much more.
Name Requirements of a Optometric Professional Corporation
The Professional Optometric Corporation’s name must include the optometrist’s name or the last name of one or more of the present, prospective, or former shareholders. It must also include a corporate ending such as: “Optometric Corporation”, “A Professional Corporation”, “Professional Corporation”, “APC”, “A.P.C.” “PC”,”P.C.”,”Prof. Corp.”,”Inc.”, “Incorporated”, “Corporation”, “A California Professional Corporation” or words or abbreviations which denote its corporate existence.
If the name of a shareholder is used, and the shareholder dies or is not a shareholder any longer, the articles of incorporation must be amended to delete the name of the former shareholder within two years.
Also, “LLC” is not permitted as a corporate designation, and California does not certify an “LLC” for the purposes of practicing Optometry, based on underlying Corporate Code concerning Professional Corporations.
Who Can Be a Shareholder Of The Professional Optometric Corporation?
At least 51 percent of the shares must be owned by a licensed optometrist. The remaining 49 percent may be owned by physicians and surgeons, podiatrists, psychologists, registered nurses, marriage and family therapists, clinical social workers, physician assistants, chiropractors, acupuncturists, naturopathic doctors or any other licensed person as specified in Business and Professions Code section 13401.5.
The number of licensed persons cannot exceed the number of optometrists, and cannot exceed a combined share total of 49 percent. Any shares issued to others who do not are not the professionals listed above are void.
Also, shares in the Professional Optometric Corporation may only be transferred to those who are licensed to practice optometry, to a shareholder of the corporation or to the professional Optometric corporation itself.
If a shareholder becomes ineligible to practice licensed optometry in California or is legally disqualified from rendering professional services to the Licensed optometry corporation, she must sell or transfer her shares to a qualified shareholder within 90 days of her ineligibility or disqualification.
Can A Optometric Corporation Be Opened As An LLC In California?
A Optometric Corporation can’t be opened as an LLC in California. The California Corporations Code does not certify LLCs (Limited Liability Companies) for the purpose of practicing optometry. For an optometrist to provide professional services in California, they must open a Professional Corporation.
Can A Professional Optometric Corporation Use a DBA Or Fictitious Name?
In California, a Professional Optometric Corporation can use a fictitious name so long as they file a fictitious business name statement within 40 days of starting the Professional Optometric Corporation. You must also make a fictitious name filing in every local county recorder’s office for which you are practicing. Also, Professional Optometric corporations may use fictitious business names, so long as such names are not false, misleading or deceptive.
How To Start an Optometric Professional Corporation
Here are the 10 steps you must take to form the California Professional Optometric Corporation:
- File the Articles of Incorporation with Secretary of State and pay the filing fee. The filing fee is currently $100. You must also state within its Articles of Incorporation that its purpose is “Optometry.”
- Register the Corporation with the California State Board of Optometry by providing the Board with an original proof of your Articles of Incorporation from the Secretary of State.
- Conduct a corporate meeting where you will issue shares and elect officials and directors for the Professional Optometric Corporation
- Create custom Professional Optometric Corporation bylaws
- Apply for an EIN
- File the Statement of Information with the Secretary of State
- File Form 2553 for S-Corporation Tax Election for the Professional Optometric Corporation
- Pay California Corporate Taxes and Fees to the California Franchise Tax
- Register with the EDD if you will be hiring employees
- Apply for local business registration and licenses
If you’re interested in forming your California Professional Corporation, email me at at sam@mollaeilaw.com or talk to me directly at 818-925-0002
What To Do Next
While these following these steps above might seem straight forward, one mistake while creating your Professional Corporation can cause your corporation to be rejected by the Secretary of State, costing you money and time.
As a Business Lawyer for Professionals, I’ve assisted hundreds of professionals just like you start their Professional Optometric Corporations and I can definitely help you with yours.
Looking to form your Optometric Corporation?
Email me at sam@mollaeilaw.com or talk to me directly at 818-925-0002
3 Steps to Starting Your Psychological Corporation (2025)
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- Start Your Business Here »
If you’re a psychologist, you SHOULD form a Psychology Corporation taxed as an S-Corporation.
If you’re a psychologist, you’re prohibited from forming an LLC or a traditional corporation for your psychology practice and instead must register as a Professional Corporation.
If done incorrectly, your Professional Corporation can be rejected by the Secretary of State, leaving you vulnerable to potential lawsuits and fines from various government agencies, and even the California State Board.
As a Business Lawyer for Professionals, I’ve assisted hundreds of professionals just like you start their Professional Corporation and I can definitely help you start yours.
If you’re a psychologist looking to start your Professional Corporation, email me at sam@mollaeilaw.com or talk to me directly at 818-925-0002
Psychology Corporation
Psychological Professional Corporation is a professional corporation which is registered with the California Secretary of State and the California Board of Psychology.
In California, all professional corporations must be registered with the corresponding governmental agency that is tasked to manage their profession. California Professional Psychological Corporations must hold a certificate of registration from the California Board of Psychology.
3 Steps to Starting a Professional Psychological Corporation
The 3 steps to starting a Professional Psychological Corporation are:
- File the Articles of Incorporation of a Professional Corporation with the Secretary of State to form the Professional Corporation
- Notify your Profession’s state agency that manages your profession, hold a Board of Director’s Meeting and appoint directors, get your Professional Corporation Bylaws drafted, apply for your EIN, file your Statement of Information, file Form 2553 for S-Corporation tax election, pay California corporate taxes to the California Franchise Tax Board, register with the EDD if you will be hiring employees, and apply for local business registration and licenses.
- Do all the steps above yourself or hire a Business Lawyer to do everything for you.
If you’re a lawyer looking to form your Professional Corporation, email me at sam@mollaeilaw.com or talk to me directly at 818-925-0002
Benefits of a Psychological Professional Corporation
Incorporating a Professional Psychological Corporation in California will limit your personal liability against creditors and lawsuits, minimize the self-employment taxes of the shareholders, allow you to build corporate business credit, and much more.
Name Requirements of a Psychology Professional Corporation
The Professional Psychological Corporation’s name must include one of the following; “psychology,” “psychological,” “psychologist,” “psychology consultation,” “psychology consultant,” “psychometry,” “psychometrics” or “psychometrist,” “psychotherapy,” “psychotherapist,” “psychoanalysis,” or “psychoanalyst.”
It must also include a corporate ending such as: “A Professional Corporation”, “Professional Corporation”, “APC”, “A.P.C.” “PC”,”P.C.”,”Prof. Corp.”,”Inc.”, “Incorporated”, “Corporation”, “A California Professional Corporation” or words or abbreviations which denote its corporate existence.
Also, “LLC” is not permitted as a corporate designation, and California does not certify an “LLC” for the purposes of practicing psychology, based on underlying Corporate Code concerning Professional Corporations.
Who Can Be A Shareholder Of The Professional Psychological Corporation
Each director, shareholder, and officer of the Professional Psychological Corporation MUST be one of the following licensed professionals in California: Licensed physicians and surgeons, Licensed doctors of pediatric medicine, Registered nurses, Licensed optometrists, Licensed marriage and family therapists, Licensed clinical social workers, Licensed chiropractors, Licensed acupuncturists, Naturopathic doctors, Licensed professional clinical counselors, or Licensed midwives.
However, the sum of all shares owned by those licensed professionals other than psychologists must not be more than 49% of all shares in the corporation. Any shares issued to others who do not are not the professionals listed above are void.
Also, shares in the Professional Psychological Corporation may only be transferred to those who are licensed to practice psychology, to a shareholder of the corporation or to the professional psychology corporation itself.
If a shareholder becomes ineligible to practice psychology in California or is legally disqualified from rendering professional services to the psychology corporation, she must sell or transfer her shares to a qualified shareholder within 90 days of her ineligibility or disqualification.
Can A Psychological Corporation Be Opened As An LLC In California?
A Psychological Corporation cannot be opened as an LLC in California. The California Corporations Code does not certify LLCs (Limited Liability Companies) for the purpose of practicing psychology.
For a psychologist to provide professional services in California, they must open a Professional Corporation.
Can A Professional Psychological Corporation Use a DBA Or Fictitious Name?
In California, a Professional Psychological Corporation can use a fictitious name so long as they file a fictitious business name statement within 40 days of starting the Professional Psychological Corporation.
You must also make a fictitious name filing in every local county recorder’s office for which you are practicing.
How To Start a Psychology Professional Corporation
Here are the 9 steps you must take to form the California Professional Psychological Corporation:
- File the Articles of Incorporation with Secretary of State and pay the filing fee. The filing fee is currently $100. You must also state within its Articles of Incorporation that its purpose is “Psychology”.
- Conduct a corporate meeting where you will issue shares and elect officials and directors for the Professional Psychological Corporation
- Create custom Professional Psychological Corporation bylaws
- Apply for an EIN
- File the Statement of Information with the Secretary of State
- File Form 2553 for S-Corporation Tax Election for the Professional Psychological Corporation
- Pay California Corporate Taxes and Fees to the California Franchise Tax
- Register with the EDD if you will be hiring employees
- Apply for local business registration and licenses
If you’re interested in forming your California Professional Corporation, email me at sam@mollaeilaw.com or talk to me directly at 818-925-0002
What To Do Next
While these following these steps above might seem straight forward, one mistake while creating your Professional Corporation can cause your corporation to be rejected by the Secretary of State, costing you money and time.
As a Business Lawyer for Professionals, I’ve assisted hundreds of professionals just like you start their Professional Psychological Corporations and I can definitely help you with yours.
Looking to form your Professional Corporation? Email me at sam@mollaeilaw.com or talk to me directly at 818-925-0002
3 Steps to Starting Your Law Professional Corporation for Lawyers in 2025
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- Start Your Business Here »
If you’re a lawyer or attorney in California, you SHOULD form a Professional Corporation taxed as an S-Corporation.
If you’re a lawyer, you’re prohibited from forming an LLC or a traditional corporation for your law practice and instead must register as a Professional Corporation.
If done incorrectly, your Professional Corporation can be rejected by the Secretary of State, leaving you vulnerable to potential lawsuits and fines from various government agencies, and even the California State Board.
As a Business Lawyer for Professionals, I’ve assisted hundreds of professionals just like you start their Professional Corporation and I can definitely help you start yours.
If you’re a lawyer looking to start your Professional Corporation, email me at sam@mollaeilaw.com or talk to me directly at 818-925-0002
Professional Law Corporation
A Professional Law Corporation is a professional corporation which is registered with the California Secretary of State and State Bar of California, to provide legal services.
The State Bar’s Law Corporations Program certifies professional corporations that wish to practice law in accordance with applicable statutes and court rules.
3 Steps to Starting a Professional Law Corporation
The 3 steps to starting a Professional Law Corporation are:
- File the Articles of Incorporation of a Professional Corporation with the Secretary of State to form the Professional Corporation
- Notify your Profession’s state agency that manages your profession, hold a Board of Director’s Meeting and appoint directors, get your Professional Corporation Bylaws drafted, apply for your EIN, file your Statement of Information, file Form 2553 for S-Corporation tax election, pay California corporate taxes to the California Franchise Tax Board, register with the EDD if you will be hiring employees, and apply for local business registration and licenses.
- Do all the steps above yourself or hire a Business Lawyer to do everything for you.
If you’re a lawyer looking to form your Professional Corporation, email me at sam@mollaeilaw.com or talk to me directly at 818-925-0002
Who Regulates Professional Law Corporations?
According to the California Corporations Code 13401(b), all professional corporations must be registered with the corresponding government agency that is tasked to manage their profession.
California law corporations must hold a certificate of registration from the State Bar of California and must abide by the California Rules of Professional Conduct.
California law corporations must also abide by the restrictions imposed by the California Supreme Court.
Benefits Of Starting A Professional Law Corporation
There are plenty of benefits of incorporating a professional law corporation in California.
Correctly starting a law corporation in California will limit your personal liability against creditors and lawsuits, minimize the self-employment taxes of the shareholders, allow you to build corporate business credit, and much more.
Why Can’t a Lawyer Form an LLC?
According to Corporate Code Section 17375, the State Bar does not certify an “LLC” within California for the purposes of practicing law, based on underlying Corporate Code concerning Professional Corporations.
Who Can Be A Shareholder Of The Professional Law Corporation?
Each director, shareholder, and officer of the professional law corporation MUST be licensed to practice law.
Shares of stock in the law corporation may only be issued to people who are licensed to practice law. Any shares shares issued to others who do not practice law are void.
Also, shares in the law corporation may only be transferred to those who are licensed to practice law, to a shareholder of the corporation or to the professional law corporation itself.
What Happens If A Shareholder Of the Professional Law Corporation Becomes Disqualified From Practicing Law?
If a shareholder becomes ineligible to practice law in California or is legally disqualified from rendering professional services to the law corporation, she must sell or transfer her shares to a qualified shareholder within 90 days of her ineligibility or disqualification.
Name Requirements For A Professional Law Corporation
The professional law corporation’s name must include a corporate ending such as:
- “A Professional Corporation”
- “A Professional Law Corporation”
- “Professional Corporation”
- “Professional Law Corporation”
- “Law Corporation”
- “APC”
- “A.P.C.”
- “PC”
- “P.C.”
- “Prof. Corp.”
- “A Professional Legal Corporation”
- “Professional Legal Corporation”
- “A Legal Corporation”
- “Inc.”
- “Incorporated”
- “Corporation”
- “A California Professional Corporation”
- “L.C.”
- “Ltd.”
- “Limited”
- “P.A.” and
- “Professional Association”.
However, the professional law corporation’s name CANNOT include “APLC” “PLC” or “LLC” as its corporate endings. “APLC” may suggest that the entity is “a Public Liability Company” or “Professional Legal Consultant” and therefore is misleading to the public.
Also, “LLC” is not permitted as a corporate designation, and the State Bar does not certify an “LLC” within California for the purposes of practicing law, based on underlying Corporate Code concerning Professional Corporations.
Also note, the name of your law corporation in State Bar records (and on file with the Secretary of State) is the only name under which it may practice law.
Using the Word “Group” in a Law Professional Corporation
To remain in compliance with Rule 1-400 of California Rules of Professional Conduct, you must justify the use of the word “Group” in your name.
You may do this by naming at least one other individual employed by your corporation. This person need not be an attorney.
Using the Word “Law Offices” in a Law Professional Corporation
In a Professional Law Corporation, including the term “Law Offices” implies that the law corporation has more than one address, or more than one attorney including the shareholder at the address of record for the corporation.
So, the term should not be used unless this arrangement is true!
The Law Corporation Program will accept a home address as the second office. The law corporation must provide The State Bar with both addresses.
Using the Word “Associate” in a Law Professional Corporation
According to Rule 1-100 “Rules of Professional Conduct”, including the term “Associate” means an employee or fellow employee who is employed as a lawyer.
The corporation must execute a guarantee in the amounts sufficient to cover the number of attorneys practicing on behalf of the corporation.
Also, including the term “Associates” implies that in addition to the shareholder, the corporation must name at least two (2) other attorneys employed by the corporation and execute a guarantee in the amounts sufficient to cover the number of attorneys practicing on behalf of the corporation.
Can A Law Firm Be Opened As An LLC In California?
No, a law firm can’t be opened as an LLC in California.
According to Corporations Code section 17375, the State Bar of California does not certify LLCs (Limited Liability Companies) for the purpose of practicing law.
For a lawyer or attorney to provide professional services in California, they must open a Professional Corporation.
Can A Professional Law Corporation Use a DBA Or Fictitious Name?
Yes, California Professional Law Corporations who want to use a Doing Business As (DBA) or a fictitious name must get a permit from the State Bar of California to use the name and pay a fee.
You should also file a fictitious name statement in every county in which you operate.
How To Form A California Professional Law Corporation
Here are the 10 steps you must take to form the California Professional Law Corporation:
- File the Articles of Incorporation with Secretary of State and pay the filing fee. The filing fee is currently $100. You must also state within its Articles of Incorporation that its purpose is “law.”
- Register the Law Corporation with the State Bar of California by providing the State Bar with an original proof of your Articles of Incorporation from the Secretary of
- Conduct a corporate meeting where you will issue shares and elect officials and directors for the Professional Law Corporation
- Create custom Law Corporation bylaws
- Apply for an EIN
- File the Statement of Information with the Secretary of State
- File Form 2553 for S-Corporation Tax Election for the Professional Law Corporation
- Pay California Corporate Taxes and Fees to the California Franchise Tax
- Register with the EDD if you will be hiring employees
- Apply for local business registration and licenses
If you’re interested in forming your California Professional Corporation, email me at sam@mollaeilaw.com or talk to me directly at 818-925-0002
What To Do Next
While these following these steps above might seem straight forward, one mistake while creating your Professional Corporation can cause your corporation to be rejected by the Secretary of State.
As a Business Lawyer for Professionals, I’ve assisted hundreds of professionals just like you start their California Law Corporations and I can definitely help you with yours.
Looking to form your Professional Corporation? Email me at sam@mollaeilaw.com or talk to me directly at 818-925-0002
3 Steps to Start Your Audiology Professional Corporation 2023
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- Start Your Business Here »
If you’re an audiologist in California, you SHOULD form a Professional Corporation taxed as an S-Corporation.
If you’re an audiologist, you’re prohibited from forming an LLC or a traditional corporation for your audiology practice and instead must register as a Professional Corporation.
If done incorrectly, your Professional Corporation can be rejected by the Secretary of State, leaving you vulnerable to potential lawsuits and fines from various government agencies, and even the California State Board.
As a Business Lawyer for Professionals, I’ve assisted hundreds of professionals just like you start their Professional Corporation and I can definitely help you start yours.
If you’re an audiologist looking to start your Professional Corporation, email me at sam@mollaeilaw.com or talk to me directly at 818-925-0002
What is a Audiology Professional Corporation
A professional audiology Corporation is a professional corporation which is registered with the California Secretary of State and the Speech-Language Pathology and Audiology Board.
In California, all professional corporations must be registered with the corresponding government agency that is tasked to manage their profession. California Audiology corporations must hold a certificate of registration from the Speech-Language Pathology and Audiology Board of California.
Benefits of Starting a Professional Audiology Corporation
Forming a Professional Audiology Corporation will limit your personal liability against creditors and lawsuits, minimize the self-employment taxes of the shareholders, allow you to build corporate business credit, and much more.
Name Requirements of Audiology Professional Corporation
The professional speech language pathology corporation’s name must include one of the following: “audiology,” “audiologist,” “audiological,” “hearing clinic,” “hearing clinician,” “hearing therapist,” or any similar titles. It must also include a corporate ending such as: “A Professional Corporation”, “Professional Corporation”, “APC”, “A.P.C.” “PC”,”P.C.”,”Prof. Corp.”,”Inc.”, “Incorporated”, “Corporation”, “A California Professional Corporation” or words or abbreviations which denote its corporate existence.
Also, “LLC” is not permitted as a corporate designation, and California does not certify an “LLC” for the purposes of practicing audiology, based on underlying Corporate Code concerning Professional Corporations.
3 Steps to Starting a Professional Audiology Corporation
- File the Articles of Incorporation of a Professional Corporation with the Secretary of State to form the Professional Corporation
- Notify your Profession’s state agency that manages your profession, hold a Board of Director’s Meeting and appoint directors, get your Professional Corporation Bylaws drafted, apply for your EIN, file your Statement of Information, file Form 2553 for S-Corporation tax election, pay California corporate taxes to the California Franchise Tax Board, register with the EDD if you will be hiring employees, and apply for local business registration and licenses.
- Do all the steps above yourself or hire a Business Lawyer to do everything for you.
Who Can Be A Shareholder Of The Professional Audiology Corporation?
Shares of stock in the Audiology corporation may only be issued to people who are licensed to practice audiology. However, licensed speech-language pathologists may also hold shares, or be officers, directors, or professional employees as long as shares owned by licensed speech- language pathologists do not total more than 49% of all shares in the corporation. Any shares issued to others who do not practice speech language pathology or audiology are void.
Also, shares in the audiology corporation may only be transferred to those who are licensed to practice audiology, to a shareholder of the corporation or to the professional audiology corporation itself.
If a shareholder becomes ineligible to practice audiology in California or is legally disqualified from rendering professional services to the audiology corporation, she must sell or transfer her shares to a qualified shareholder within 90 days of her ineligibility or disqualification.
Can An Audiology Corporation Be Opened As An LLC In California?
An audiology corporation cannot be opened as an LLC in California. The California Corporations Code does not certify LLCs (Limited Liability Companies) for the purpose of practicing audiology. For an audiologist to provide professional services in California, they must open a Professional Corporation.
Can An Audiology Corporation Use a DBA Or Fictitious Name?
In California, an audiology corporation can use a fictitious name so long as they file a fictitious business name statement within 40 days of starting the audiology corporation. You must also make a fictitious name filing in every local county recorder’s office for which you are practicing.
How To Form A California Audiology Corporation
Here are the 9 steps to start an Audiology Professional Corporation:
- File the Articles of Incorporation with Secretary of State and pay the filing fee. The filing fee is currently $100. You must also state within its Articles of Incorporation that its purpose is “Audiology”.
- Conduct a corporate meeting where you will issue shares and elect officials and directors for the Professional Audiology Corporation
- Create custom Audiology Corporation bylaws
- Apply for an EIN
- File the Statement of Information with the Secretary of State
- File Form 2553 for S-Corporation Tax Election for the Professional Audiology Corporation
- Pay California Corporate Taxes and Fees to the California Franchise Tax
- Register with the EDD if you will be hiring employees
- Apply for local business registration and licenses
If you’re interested in forming your California Professional Corporation, email me at sam@mollaeilaw.com or talk to me directly at 818-925-0002
What To Do Next
While these following these steps above might seem straight forward, one mistake while creating your Professional Corporation can cause your corporation to be rejected by the Secretary of State, costing you money and time.
As a Business Lawyer for Professionals, I’ve assisted hundreds of professionals just like you start their California Audiology Corporations and I can definitely help you with yours.
Looking to form your Professional Corporation?
Email me at sam@mollaeilaw.com or talk to me directly at 818-925-0002
