3 Steps to Starting Your Nursing Professional Corporation In 2024

If you are a registered nurse, you SHOULD form a Nursing Professional Corporation in California taxed as an S-Corporation.

California law prohibits registered nurses from forming LLCs or a traditional general corporations for their nursing practices. Instead, they must register as a Nursing Professional Corporation when starting a nursing business.

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 Board of Registered Nursing.

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 registered nurse looking to start your Professional Corporation, email me  at sam@mollaeilaw.com or talk to me directly at 818-925-0002

 

What is a Nursing Professional Corporation?

A Professional Nursing Corporation Corporation is a professional corporation which is registered with the California Secretary of State and the California Board of Registered Nursing.

In California, all professional corporations must be registered with the corresponding governmental agency that is tasked to manage their profession. California Professional Nursing Corporation must hold a certificate of registration from the California Board of Registered Nursing.

 

3 Steps to Starting a Professional Nursing Corporation

The 3 steps to starting a Professional Nursing Corporation are:

  1. File the Articles of Incorporation of a Professional Corporation with the Secretary of State to form the Professional Corporation
  2. 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.
  3. 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 Nursing Professional Corporation

Incorporating a Professional Nursing 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.

Learn more about the benefits of a Professional Corporation here.

 

Name Requirements of a Nursing Professional Nursing Corporation

The Professional Nursing Corporation’s name must include “nursing” or “registered nursing.” 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 Registered Nursing, based on underlying Corporate Code concerning Professional Corporations.

 

Who Can Be A Shareholder Of The Professional Nursing Corporation?

At least 51 percent of the shares must be owned by the registered nurse. The remaining 49 percent may be owned by Licensed physicians and surgeons, Licensed doctors of pediatric medicine, Licensed psychologists, Licensed optometrists, Licensed marriage and family therapists,Licensed clinical social workers, Licensed physician assistants, Licensed chiropractors, Licensed acupuncturists, Naturopathic doctors, Licensed midwives and Licensed professional clinical counselors.

The number of licensed persons cannot exceed the number of registered nurses, 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 Nursing Corporation may only be transferred to those who are licensed to practice registered nursing, to a shareholder of the corporation or to the Professional Nursing Corporation itself.

If a shareholder becomes ineligible to practice registered nursing in California or is legally disqualified from rendering professional services to the Professional Nursing Corporation, she must sell or transfer her shares to a qualified shareholder within 90 days of her ineligibility or disqualification.

 

Can A Nursing Corporation Be Opened As An LLC In California?

A Nursing 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 registered nursing. For a registered nurse to provide professional services in California, they must open a Professional Corporation.

 

Can A Professional Nursing Corporation Use a DBA Or Fictitious Name?

In California, a Professional Nursing Corporation can use a fictitious name so long as they file a fictitious business name statement within 40 days of starting the Professional Nursing Corporation.

You must also make a fictitious name filing in every local county recorder’s office for which you are practicing. Also, Professional Nursing Corporations may use fictitious business names, so long as such names are not false, misleading or deceptive.

 

How To Start a Nursing Professional Corporation

Here are the 9 steps you must take to form the California Professional Nursing Corporation:

  1. 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 “Nursing”.
  2. Conduct a corporate meeting where you will issue shares and elect officials and directors for the Professional Nursing Corporation
  3. Create custom Professional Nursing Corporation bylaws
  4. Apply for an EIN
  5. File the Statement of Information with the Secretary of State
  6. File Form 2553 for S-Corporation Tax Election for the Professional Nursing Corporation
  7. Pay California Corporate Taxes and Fees to the California Franchise Tax
  8. Register with the EDD if you will be hiring employees
  9. 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 Nursing 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 Marriage & Family Therapy Corporation (2023)

Marriage and Family Therapy Professional Corporation

If you’re a marriage and family therapist, you SHOULD form a Marriage & Family Therapist Corporation taxed as an S-Corporation and cannot open as a traditional LLC. 

California law prohibits marriage and family therapists from forming LLCs or a traditional general corporations for their marriage and family therapy 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 Board of Behavioral Sciences.

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 marriage and family therapist looking to start your Professional Corporation, email me at sam@mollaeilaw.com or talk to me directly at 818-925-0002

 

What is a Professional Marriage and Family Therapy Corporation

A Professional Marriage and Family Therapy  Corporation is a professional corporation which is registered with the California Secretary of State and the California Board of Behavioral Sciences.

In California, all professional corporations must be registered with the corresponding governmental agency that is tasked to manage their profession.

California Professional Marriage and Family Therapy Corporations must hold a certificate of registration from the California Board of Behavioral Sciences.

 

3 Steps to Starting a Professional Marriage and Family Therapy Corporation

The 3 steps to starting a Professional Marriage and Family Therapy Corporation are:

  1. File the Articles of Incorporation of a Professional Corporation with the Secretary of State to form the Professional Corporation
  2. 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.
  3. Do all the steps above yourself or hire a Business Lawyer to do everything for you.

If you’re a family and marriage therapist looking to form your Professional Corporation, email me at sam@mollaeilaw.com or talk to me directly at 818-925-0002

 

Benefits Of Marriage and Family Therapy Corporation

Incorporating a Professional Marriage and Family Therapy 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 Marriage and Family Therapy Corporation

The Professional Marriage and Family Therapy Corporation’s name must include one of the following; “marriage,” “family,” or “child” together with one or more of the words: “counseling,” “counselor,” “therapy,” or “therapist.”

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.

A marriage and family therapy corporation is required to inform patients, at the outset of treatment, that the business is conducted by a marriage and family therapy corporation. This information may be noted in the Disclosure Statement or the Informed Consent Form.

Also, “LLC” is not permitted as a corporate designation, and California does not certify a “LLC” for the purposes of practicing marriage and family therapy, based on underlying Corporate Code concerning Professional Corporations.

 

Who Can Be A Shareholder Of The Professional Marriage and Family Therapy Corporation?

In a marriage and family therapy corporation, 51% of the corporation’s shares must be owned by a licensed marriage and family therapist. The remaining 49% of the outstanding shares can be owned by one of the following licensed professionals in California: licensed physicians and surgeons, licensed psychologists, licensed clinical social workers, registered nurses, licensed chiropractors, licensed acupuncturists, or naturopathic doctors.

Any shares issued to others who do not are not the professionals listed above are void.

Also, shares in the Professional Marriage and Family Therapy Corporation may only be transferred to those who are licensed to practice marriage and family therapy, to a shareholder of the corporation or to the professional marriage and family therapy corporation itself.

If a shareholder becomes ineligible to practice marriage and family therapy in California or is legally disqualified from rendering professional services to the marriage and family therapy corporation, she must sell or transfer her shares to a qualified shareholder within 90 days of her ineligibility or disqualification.

 

Can A Marriage and Family Therapy Corporation Be Opened As An LLC In California

A Marriage and Family Therapy 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 marriage and family therapy.

For a marriage and family therapist to provide professional services in California, they must open a Professional Corporation.

 

Can A Professional Marriage and Family Therapy Corporation Use a DBA Or Fictitious Name?

In California, a Professional Marriage and Family Therapy Corporation can use a fictitious name so long as they file a fictitious business name statement within 40 days of starting the Professional Marriage and Family Therapy Corporation.

You must also make a fictitious name filing in every local county recorder’s office for which you are practicing. Also, Marriage and family therapy corporations may use fictitious business names, so long as such names are not false, misleading or deceptive.

 

How To Start a Marriage and Family Therapy Corporation

Here are the 9 steps you must take to form the California Professional Marriage and Family Therapy Corporation:

  1. 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 “Marriage and Family Therapy”.
  2. Conduct a corporate meeting where you will issue shares and elect officials and directors for the Professional Marriage and Family Therapy Corporation
  3. Create custom Professional Marriage and Family Therapy Corporation bylaws
  4. Apply for an EIN
  5. File the Statement of Information with the Secretary of State
  6. File Form 2553 for S-Corporation Tax Election for the Professional Marriage and Family Therapy Corporation
  7. Pay California Corporate Taxes and Fees to the California Franchise Tax
  8. Register with the EDD if you will be hiring employees
  9. 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 Marriage and Family Therapy 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

How to Start a Corporation in California 2025 (UPDATED)

How to Start a Corporation in California

You’ve decided to start a new business in the state of California. You’ve done the research on various business structures and corporation seems to be a good fit.

While you should absolutely reach out to an experienced corporate attorney such as myself at sam@mollaeilaw.com to ensure corporation is the right choice, the next step is simple.

How Do You Form a Corporation in California?

If you follow my ten-step process, it isn’t too hard!

 

1. Select Your Corporate Name

The name of your corporation needs to be unique to other businesses already established in the state of California.

California Secretary of State and U.S. Patent & Trademark Office are great resources for checking the availability on potential business names.

It is also important that your business name isn’t misleading. It needs to make sense for what the business actually is.

You can also do a free preliminary check by mailing a Name Availability Inquiry Letter to the California Secretary of State’s office. Keep in mind, you have to mail it in as email inquiries are not an option.

Finally, you can file a Name Reservation Form for 60 days to prevent anyone else from taking the name. The fee is $10, and you must either mail the form in or hand deliver it.

 

2. Articles of Incorporation

To make your corporation official – and legal – you need to file the Articles of Corporation.

The file you send to the California Secretary of State must include the name of your corporation, the purpose, the name and address of the registered agent, and how many shares the corporation is authorized to distribute.

Articles need mailing addresses and street addresses – not P.O. boxes.

There is a $100 filing fee and it must be filed by mail or in person.

File Statement of Information

Within 90 days of filing the Articles of Incorporation and every year after you file, you must file a Statement of Information.

If you are a California corporation you file Form SI-200. If you are foreign, you file Form SI-350. You can file these forms online, by mail, or by drop-off.

The Statement of Information has a $25 filing fee.

Register as a Foreign Corporation Doing Business in California

While you do not have to be in the state to do business, you must register with the Secretary of State. Foreign corporations also need to appoint a registered agent that is physically located in the state.

You can file the Statement and Designation by Foreign Corporation form by mail or in person.

This form comes with a $100 filing fee.

If the name of the foreign corporation is not available in the state, you will have to qualify with an assumed name.

To form in the state of California, you must have a certificate that proves the corporation has been in good standing within six months prior.

 

3. Establish Registered Agent

Every corporation requires an incorporator – or registered agent – that resides in the home state. This individual needs to be in California to accept any legal paperwork on behalf of the company.

In some instances, business owners prefer to hire a registered agent from a private service company that specializes in serving as incorporators of companies.

I highly recommend contacting an experienced attorney such as myself at sam@mollaeilaw.com for a little direction on choosing the best registered agent.

After all, this is a physical body in the state of California representing your business. You need to make sure it is someone you trust to do the job properly.

 

4. Corporate Bylaws

Bylaws are internal ground rules for how the corporation is to be operates.

This is not something you file with the state. This is not something you are legally obligated to have.

As a corporate attorney, however, I’ve added this to the list of steps because it is necessary. It legitimizes your corporation in the eyes of credits, the IRS, and financial institutes.

More importantly, everyone needs guidelines and ground rules.

 

5. Corporate Directors

In addition to the incorporator, you also need a board of corporate directors. This is just the initial board of directors as the shareholders will elect board members during the first shareholders annual meeting.

Your incorporator is required to file what’s called the Incorporator’s Statement listing the names and addresses of the initial directors.

While you need to keep this form your records, this does not need to be filed with the state.

 

6. Board of Directors Meeting

During the first board of directors meeting, they should appoint officers, establish bylaws, select a corporate bank, and distribute stock shares.

They should also establish the corporation’s fiscal year and adopt both the stock certificate form and corporate seal.

All the actions taken need to be documented by the incorporator in the corporate minutes. If the corporation is an S Corp, the first meeting should also include the directors adopting the S Corp status.

It can take anywhere from one to two weeks for the incorporator to prepare the minutes before passing them off to all the directors for their signatures.

 

7. Issue Stock

Take the time to issue stocks to your shareholders. While you are not required to by law, most corporations like to issue stock certificates.

 

8. California Tax Requirements

All California corporations – including foreign – are required to pay taxes to the California Franchise Tax Board (FTB) for doing business in the state of California.

They are also required to pay the annual minimum franchise tax of $800.

Corporations with a lot of income, may end up paying additional tax fees based on their annual income.

 

9. Tax and Regulatory Requirements

Taking steps that include obtaining a federal employer identification number (EIN) and electing the S Corp status for your business are crucial.

By default, the IRS sees all corporations as C Corp. You have to elect the S Corp status if you want to form as an S Corp instead.

You have to submit Form 2553 Election by a Small Business Corporation and it must be signed by all of the shareholders.

It is important to file the election within two months and 15 days of the start of the corporation’s tax year.

Depending on what type of business you manage, it is also important to obtain necessarily permits, licensing, and zoning.

I highly recommend speaking to an experienced business lawyer such as myself at sam@mollaeilaw.com to make sure you have all your ducks in a row when it comes to taxes and regulations. Otherwise, you could end up in legal hot water.

 

10. Corporate Records Book

As you make it to the tenth and final step, you notice the paperwork is starting to pile up. A corporate records book is a crucial part of keeping things straight.

This isn’t something you are legally required to have or need to file with anyone, but this is something that keeps all your important paperwork organized.

Any corporate lawyer worth their salt will tell you a corporate records book is a must-have.

 

What To Do Next

As long as you follow this ten-step action plan, you should have no trouble forming a corporation in the state of California.

Please reach out to me at sam@mollaeilaw.com if you need help with any of the paperwork. Getting the assistance of an experienced attorney from the start is better than having to redo paperwork after making mistakes by trying to do it on your own.

3 Steps to Starting Your Chiropractic Corporation

Chiropractic Corporation

If you’re a chiropractor, you SHOULD form a Chiropractic Corporation taxed as an S-Corporation.

If you’re a chiropractor, you’re prohibited from forming an LLC or a traditional corporation for your chiropractic 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 chiropractor looking to start your Professional Corporation, email me at sam@mollaeilaw.com or talk to me directly at 818-925-0002

 

Chiropractic Corporation

A Professional Chiropractic Corporation is a professional corporation which is registered with the California Secretary of State and the California State Board of Chiropractic Examiners.

In California, all professional corporations must be registered with the corresponding governmental agency that is tasked to manage their profession. Professional Chiropractic Corporation must hold a certificate of registration from the California State Board of Chiropractic Examiners.

 

3 Steps to Starting a Chiropractic Corporation

The 3 steps to starting a Chiropractic Corporation are:

  1. File the Articles of Incorporation of a Professional Corporation with the Secretary of State to form the Professional Corporation
  2. 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.
  3. 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 Chiropractic Corporation

Incorporating a Professional Chiropractic 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.

Learn more about the benefits of a professional corporation here.

 

Name Requirements of a Chiropractic Professional Corporation

The Professional Chiropractic Corporation’s name must contain the name or the last name of one or more of the present, prospective, or former shareholders, and include the word “chiropractic”. 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 chiropractic treatment, based on underlying Corporate Code concerning Professional Corporations.

 

Who Can Be a Shareholder Of a Chiropractic Professional Corporation

At least 51 percent of the shares must be owned by the chiropractor. The remaining 49 percent may be owned by Licensed physicians and surgeons, Licensed doctors of pediatric medicine, Licensed psychologists, Registered nurses, Licensed optometrists, Licensed marriage and  family therapists, Licensed clinical social workers, Licensed acupuncturists, Naturopathic doctors, Licensed professional clinical counselors, and Licensed midwives.

The number of licensed persons cannot exceed the number of chiropractors, 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 Chiropractic Corporation may only be transferred to those who are licensed to practice registered chiropractic medicine, to a shareholder of the corporation or to the Professional Chiropractic Corporation itself.

If a shareholder becomes ineligible to practice chiropractic medicine in California or is legally disqualified from rendering professional services to the Professional Chiropractic Corporation, she must sell or transfer her shares to a qualified shareholder within 90 days of her ineligibility or disqualification.

 

Can a Chiropractic Corporation Be Opened As An LLC In California?

A Chiropractic 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 chiropractic medicine. For a chiropractor to provide professional services in California, they must open a Professional Corporation.

 

Can a Professional Chiropractic Corporation Use a DBA Or Fictitious Name?

In California, a Professional Chiropractic Corporation cannot use a fictitious name or DBA for the Corporation.

 

How To Form A Professional Chiropractic Corporation in California

Here are the 9 steps you must take to form the Professional Chiropractic Corporation:

  1. 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 “Chiropractic Medicine”.
  2. Conduct a corporate meeting where you will issue shares and elect officials and directors for the Professional Chiropractic Corporation
  3. Create custom Professional Chiropractic Corporation bylaws
  4. Apply for an EIN
  5. File the Statement of Information with the Secretary of State
  6. File Form 2553 for S-Corporation Tax Election for the Professional Chiropractic Corporation
  7. Pay California Corporate Taxes and Fees to the California Franchise Tax
  8. Register with the EDD if you will be hiring employees
  9. 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 Chiropractic 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 Veterinarian Professional Corporation (2025)

Professional Corporation for Veterinarians

If you’re a veterinarian in California, you SHOULD form a Professional Veterinary Corporation taxed as an S-Corporation.

California law prohibits veterinarians from forming an LLCs or a traditional corporations to practice veterinary medicine 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 veterinarian looking to start your Professional Corporation, email me at sam@mollaeilaw.com or talk to me directly at 818-925-0002

 

Professional Veterinary Corporation

A Professional Veterinary Corporation is a professional corporation which is registered with the Veterinary Medical Board, to provide veterinary services.

3 Steps to Starting a Professional Veterinary Corporation

The 3 steps to starting a Professional Veterinary Corporation are:

  1. File the Articles of Incorporation of a Professional Corporation with the Secretary of State to form the Professional Corporation
  2. 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.
  3. 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 A Professional Veterinary Corporation

There are plenty of benefits of incorporating a professional veterinary corporation in California.

Correctly starting a veterinary 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 For A Professional Veterinary Corporation

The name of a professional veterinary corporation must contain the words “veterinary corporation” or words or abbreviations which denote its corporate existence, such as “Inc”, “Corp”, or “Corporation”. Also the veterinary corporation may adopt any name permitted by a law expressly applicable to veterinary medicine or by a rule or regulation of the Veterinary Medical Board.

Also, “LLC” is not permitted as a corporate designation within California for the purposes of practicing veterinary medicine, based on underlying Corporate Code concerning Professional Corporations.

 

Who Regulates Professional Veterinary 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 Veterinary corporations must be approved for licensure by the Veterinary Medical Board the before practicing or holding out to the public as an veterinary corporation.

Who Can Be A Shareholder Of The Professional Veterinary Corporation

Each director, shareholder, and officer of the professional veterinary corporation MUST be licensed to practice veterinary medicine.The director of an veterinary corporation must be a licensed shareholder.

Shares of stock in the veterinary corporation may only be issued to people who are licensed to practice veterinary medicine. Any shares shares issued to others who do not practice veterinary medicine are void.

A corporation also may have a non-licensee shareholder, vice-president, or secretary (officer).

However, a non-licensee may not be both a shareholder and an officer. A non-licensee cannot be a director of the firm.

Also, shares in the veterinary corporation may only be transferred to those who are licensed to practice veterinary medicine, to a shareholder of the corporation or to the professional veterinary corporation itself.

 

What Happens If A Shareholder Of the Professional Veterinary Corporation Becomes Disqualified From Practicing Veterinary Medicine

If a shareholder becomes ineligible to practice Veterinary Medicine in California or is legally disqualified from rendering professional services to the veterinary corporation, she must sell or transfer her shares to a qualified shareholder within 90 days of her ineligibility or disqualification.

 

Can a Veterinary Corporation Be Opened As An LLC In California?

A veterinary corporation can’t be opened as an LLC in California.

The Corporations Code section 17375, does not certify LLCs (Limited Liability Companies) for the purpose of practicing veterinary medicine. If an veterinarian wants to provide professional services in California, they must open a Professional Corporation.

 

Can A Professional Veterinary Corporation Use a DBA Or Fictitious Name?

In California, a veterinary corporation can use a fictitious name so long as they file a fictitious business name statement within 40 days of starting the vetrinary 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 Professional Veterinary Corporation

Here are the 10 steps you must take to form the California Professional Veterinary Corporation:

  1. 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 “Veterinary Medicine”.
  2. Register the Veterinary Corporation’s location with the Veterinary Medical Board by providing them with the location of your practice.
  3. Conduct a corporate meeting where you will issue shares and elect offcials and directors for the Professional Veterinary Corporation
  4. Create custom Accountancy Corporation bylaws
  5. Apply for an EIN
  6. File the Statement of Information with the Secretary of State
  7. File Form 2553 for S-Corporation Tax Election for the Professional Accountancy Corporation
  8. Pay California Corporate Taxes and Fees to the California Franchise Tax
  9. Register with the EDD if you will be hiring employees
  10. 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.

As a Business Lawyer for Professionals, I’ve assisted hundreds of professionals just like you start their California Veterinary 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

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