3 Steps to Starting Your Podiatry Corporation (2023)
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by Sam Mollaei
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If you’re a podiatrist, you SHOULD form a Podiatry Corporation taxed as an S-Corporation.
If you’re a podiatrist, you’re prohibited from forming an LLC or a traditional corporation for your podiatry 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 podiatrist looking to start your Professional Corporation, email me at sam@mollaeilaw.com or talk to me directly at 818-925-0002
Podiatry Corporation
A Professional Podiatry Corporation is a professional corporation which is registered with the California Secretary of State, the Medical Board of California, and The American Board of Pediatrics.
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 Board of Pediatric Medicine.
3 Steps to Starting a Podiatry Corporation
The 3 steps to starting a Podiatry 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 Podiatry Professional Corporation
Incorporating a Professional Podiatry 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 professional corporations here.
Name Requirements of Podiatry Corporation
The Professional Podiatry Corporation’s name must contain the 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: “Podiatry Corporation”, “Podiatry Corp.”,”Podiatrist”, “Doctor of Podiatric Medicine”, “D.P.M”, “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 podiatry, based on underlying Corporate Code concerning Professional Corporations.
Who Can Be A Shareholder Of The Professional Podiatry 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 psychologists, Registered nurses, Licensed optometrists, Licensed chiropractors, Licensed acupuncturists, Naturopathic doctors, Licensed physical therapists. 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 Podiatry Corporation may only be transferred to those who are licensed to practice podiatry, to a shareholder of the corporation or to the Professional Podiatry Corporation itself.
If a shareholder becomes ineligible to practice podiatry in California or is legally disqualified from rendering professional services to the Professional Podiatry Corporation, she must sell or transfer her shares to a qualified shareholder within 90 days of her ineligibility or disqualification.
Can a Podiatry Corporation Be Opened As An LLC In California?
A Podiatry Corporation can’t be opened as an LLC in California. The California Corporations Code does not certify LLCs to practice podiatry. For a podiatrist to provide professional services in California, they must open a Professional Corporation.
Can a Professional Podiatry Corporation Use a DBA Or Fictitious Name?
In California, a Professional Podiatry 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 “podiatric,” “podiatry,” “podiatrist,” “foot,” or “ankle”.
You can apply for the fictitious name permit here: http://www.mbc.ca.gov/Forms/Applicants/fnp-001.pdf
How To Start a Podiatry 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 “Podiatry”.
- Conduct a corporate meeting where you will issue shares and elect officials and directors for the Professional Podiatry Corporation
- Create custom Professional Podiatry 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 Podiatry 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 Podiatry 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 Pharmacist Professional Corporation (2023)
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- Start Your Business Here »
If you’re a pharmacist in California, you SHOULD form a Professional Corporation taxed as an S-Corporation.
If you’re a pharmacist, you’re prohibited from forming an LLC or a traditional corporation for your pharmacy 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 pharmacist looking to start your Professional Corporation, email me at sam@mollaeilaw.com or talk to me directly at 818-925-0002
Professional Pharmacy Corporation
A Professional Pharmacy Corporation is a professional corporation which is registered with the California Secretary of State and the Board of Pharmacy of the State of California.
3 Steps to Starting a Professional Pharmacy Corporation
The 3 steps to starting a Professional Pharmacy 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 pharmacist 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 Pharmacy Corporation
There are plenty of benefits of incorporating a professional pharmacy corporation in California.
Correctly starting a pharmacy 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 Pharmacy Corporation
The professional pharmacy corporation’s name must include the word “pharmacist”, “pharmacy”, or “Pharmaceutical”. It must also contain 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 pharmacy, based on underlying Corporate Code concerning Professional Corporations.
Who Regulates Professional Pharmacy Corporations
In California, all professional corporations must be registered with the corresponding government agency that is tasked to manage their profession.
California pharmacy corporations must hold a certificate of registration from the Board of Pharmacy of the State of California and have a pharmacy permit.
Who Can Be A Shareholder Of The Professional Pharmacy Corporation?
Each director, shareholder, and officer of the professional pharmacy corporation MUST be licensed to practice pharmacy.
Shares of stock in the pharmacy corporation may only be issued to people who are licensed to practice pharmacy.
Any shares shares issued to others who do not practice pharmacy are void.
Also, shares in the pharmacy corporation may only be transferred to those who are licensed to practice pharmacy, to a shareholder of the corporation or to the professional pharmacy corporation itself.
What Happens If A Shareholder Of the Professional Pharmacy Corporation Becomes Disqualified From Practicing Pharmacy?
If a shareholder becomes ineligible to practice pharmacy in California or is legally disqualified from rendering professional services to the pharmacy corporation, she must sell or transfer her shares to a qualified shareholder within 90 days of her ineligibility or disqualification.
Can A Pharmacy Be Opened As An LLC In California?
A pharmacy 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 pharmacy.
For a pharmacist to provide professional services in California, they must open a Professional
Corporation.
Can A Professional Pharmacy Corporation Use a DBA Or Fictitious Name?
In California, a pharmacy corporation can use a fictitious name so long as they file a fictitious business name statement within 40 days of starting the pharmacy 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 Pharmacy Corporation
Here are the 9 steps you must take to form the California Professional Corporation for Pharmacists:
- 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
“pharmacy”. - Conduct a corporate meeting where you will issue shares and elect officials and directors for
the Professional Pharmacy Corporation - Create custom Pharmacy 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, costing you money and time.
As a Business Lawyer for Professionals, I’ve assisted hundreds of professionals just like you to start their California Pharmacy Corporations and I can definitely help you with yours.
Are you a pharmacist looking to form your Professional Corporation?
Email me at sam@mollaeilaw.com or talk to me directly at 818-925-000286
How to Start S Corporation in California
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If you would like to start an S corporation in California, read the following information to gain further insight into the process. If you are seeking to form this type of business, you, no doubt, want to enjoy the tax advantages associated with forming the entity.
What are the Two Main S Corporation California Benefits?
An S corporation California entity can serve your well, as it offers the following advantages:
- This business entity offers limited liability but provides the more traditional structure of a corporation.
- Pass-through taxation is offered for business profits. Therefore, you can record these profits on your tax return.
As a result, shareholders or owners of an S corporation enjoy lower income taxes and self-employment taxes. The pass-through feature permits owners of the company to reduce their total tax costs or pay taxes at a rate lower than what the corporation would have to pay.
Send me an email about any questions you may have about this incorporation. I can be reached at sam@mollaeilaw.com anytime.
An S corporation California formation is a standard corporation that becomes a subchapter S company when the business’s shareholders elect a special tax status with the IRS (Internal Revenue Service).
Like a C corporation California business, an S Corporation is regarded, legally, as an individual entity – one that is separate from its shareholders or owners. In turn, shareholders of an S corporation enjoy limited liability from obligations or the debts incurred by the business. This liability also extends to legal actions that may emerge.
I can help you make the needed distinctions between a C Corporation filing and an S Corporation. I can also help you set yourself up as an S Corporation for tax purposes. Contact me today at sam@mollaeilaw.com for further details.
How Does a Company Form an S Corporation California Business?
An S Corporation California business must follow two basic steps to become incorporated.
- The company first must file an Articles of Incorporation with the state of California.
- The company follows up by electing S Corporation status with the Internal Revenue Service (IRS).
The election should be made within a certain timeframe after incorporation. Let me help you ensure that your incorporation is successful. Contact me today at sam@mollaeilaw.com to get all the details.
When the Articles of Incorporation (or Certificate of Incorporation) is filed, filing fees must be paid. After incorporation, new business owners must file Form 2553 with the IRS. This shows that the company elects S corporation status. It is also necessary to adopt bylaws and hold an initial meeting of the shareholders and directors. Owners are issued shares of stock at this time as well.
This whole process, while basic, can be complex. That is why you need to work with a lawyer and rely on him or her for all your business legal needs. Because I specialize in company formations, you can go to one source to set up your business today.
Contact me at sam@mollaeilaw.com to get all the details and begin the incorporation process.
What are the Differences between S Corporation California Formations and C Corporation Entities?
To help you with an S Corporation California formation, you need to look at the differences between S Corporations and C Corporations in the state. The main difference, you will find, is how the two entities are taxed.
A Major Tax Benefit
Electing to run your business as an S corporation enables you to divide the income and losses among the shareholders (owners), who record the information on their tax returns. The S corporation is not taxed at a corporate level. Therefore, shareholders pay taxes individually instead.
Defining Double Taxation for C Corporation Entities
A C-corporation, on the other hand, is considered as a separate taxable company formation. Therefore, a C corporation pays taxes at the corporate level and the personal income level when shareholder payments are made. This is known as double taxation.
The S Corporation Advantage for California Small Businesses
Naturally, if you are a smaller firm, you will like the benefits attached to forming an S corporation California company. Doing so allows you to avoid the double taxation associated with a traditional C corporation formation filing.
What S Corporation California Regulations are Placed on Company Formation?
While an S Corporation California company formation is highly beneficial to a small business for taxation, certain restrictions should be noted. These restrictions follow:
- S corporations are only permitted 100 shareholders.
- All the shareholders in an S corporation must be permanent residents of the US. You cannot be a foreign investor and buy into this type of company.
- S corporation owners cannot be established as a general partnership, limited liability company, or C corporation.
- S corporations may issue only one type of stock.
The above restrictions should not be a hindrance if you operate as one person or form a small company. However, any efforts toward attracting substantial investors may prove to be a problem.
As a result, the big benefit associated with an S Corporation California formation is pass-through taxation. However, recent tax code changes make understanding this allowance more complex. I can assist you by answering any questions along these lines.
Who to Contact about the Legal Complexities of an S Corporation California Formation
Won’t you contact me by email today at sam@mollaeilaw.com to get all your concerns and questions answered about forming an S Corporation California company? Any company formation should be accompanied by support from a competent legal specialist.
What Does the “S” in an S Corporation California Formation Mean?
While some people believe the “S” in an S Corporation California entity means “small,” that is incorrect. This type of business references Subchapter S of the IRS code. An S corporation is designed to safeguard the company’s shareholders from a firm’s liabilities.
A Subchapter S designation must be elected by the company after the corporation has been chartered. This permits a business to combined the tax benefits of personal taxation with the limited liability advantages of a corporation.
How Does an S Corporation California Company Pay Income Taxes?
Once your business becomes an S Corporation California company, IRS Form 1120-S is used for reporting and filing taxes. Other shareholder distributions are made by using IRS Schedule K-1.
What Information or Forms are Needed to File Income Taxes for an S Corporation California Business?
An S Corporation California business may be liable for the following taxes. Therefore, you will need to check with your accountant what IRS forms are needed for recording and payment.
S Corporation California taxes may include:
- Income Tax (IRS form 1120S and 1120S Schedule K-1)
- Estimated Tax (IRS form 1120-W) – corporation only
- Employment taxes, including social security and Medicare taxes, and income withholding tax. Federal unemployment tax (FUTA) and depositing employment taxes are included as well.
- Excise taxes
Any information that applies to the above forms will be needed for taxation.
Also, S Corporation shareholders are liable for income taxes (IRS 1040 and Schedule E, including other referenced forms on the shareholder’s form Schedule K-1. Estimated tax payments must be made on 1040-ES.
You can get further details about taxes and the information used for recording by speaking to your accountant. I can also support any details along these lines. Simply send me an email at sam@mollaeilaw.com today.
What To Do Next
To form an S Corporation California business, you will need my legal help and support.
Again, feel free to contact me at sam@mollaeilaw.com to get started. I can assess your situation to see if you meet S Corporation criteria and get you started with the formation process.
3 Steps to Starting Your Dentistry Professional Corporation in 2025 (UPDATED)
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- Start Your Business Here »
If you’re a dentist in California, you SHOULD form a professional dental corporation taxed as an S-Corporation.
California law prohibits dentists from forming LLCs or traditional stock corporations for their dental practices. Instead, dentists 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. It may even lead to disciplinary actions from the Dental Board of California.
As a Business Lawyer for Dentists, we’ve assisted hundreds of dentists just like you start their Dentistry Professional Corporation and we can definitely help you start yours.
If you’re a dentist and you’re looking to start a Professional Corporation, book a call here or email sam@mollaeilaw.com or talk to us directly at 818-925-0002
Professional Corporations for Dentists
If you’re a dentist in California, you must form a Professional Corporation, as designated by the California Secretary of State, to practice your profession as a dentist or to open your dental practice.
Learn more about Professional Corporation here.
Business Lawyer for Dentist
As a business lawyer for dentists, I help dental clinicians and specialist form their dental professional corporation in the most effective and efficient way possible. Dentists rest easy knowing that their practice is formed the right way the first time.
3 Steps to Starting a Dentistry Professional Corporation
The 3 steps to starting a Dentistry 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 dentist looking to form your Dentistry Professional Corporation, email us at sam@mollaeilaw.com or talk to us directly at 818-925-0002
Professional Dental Corporations Requirements
To open a professional dental corporation, you must be licensed by the Dental Board of California.
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 dental corporations must register with the Dental Board of California and must currently have a effective certificate of registration from the Dental Board of California under the Professional Corporations Act.
Who Can Be A Shareholder Of A California Dental Corporation?
Typically, a professional corporation is normally limited to rendering professional services in only one profession. Its shareholders, directors and officers must also be licensed in the profession the corporation is to practice.
However, California dental corporations may have shareholders, officers, directors or employees who are licensed in similar professions as long as they do not own more than 49% of the total stock of the dental corporation. Also, the number of non-dentist shareholders cannot outnumber the number of licensed dentists in the corporation.
The professionals who are able to be shareholders within the California dental corporations are:
- Registered dental assistants
- Accredited dental assistants in extended functions
- Dental hygienists in extended functions
- Registered dental hygienists in alternative practice
- Licensed and certified physicians
- Licensed surgeons
What Are The Benefits Of Starting a Professional Dental Corporation?
There are plenty of benefits of incorporating a professional dental corporation in California.
Correctly starting a dental corporation in California will limit your personal liability against creditors and lawsuits, minimize the self-employment taxes of the shareholders, pass profits and losses through the shareholders to avoid double taxation, allow you to build corporate business credit, and much more.
Name Requirements For Dentistry Professional Corporation
The name of the dental professional corporation must contain the name or the last name of one or more of the present, prospective, or former shareholder and must include the words “dental corporation” “Professional Corporation” “Prof. Corp.” “Corporation” “Corp.” “Incorporated” or “Inc.”
Can A Professional Dental Corporation in California Use A Fictitious Business Name?
Yes, if you will be opening your professional dental corporation under a fictitious name, you must file a fictitious business name statement in the county which you will be seeing patients as well as the California Dental Board.
What Is Considered A Fictitious Business Name?
According to the Business and Professions Code 17900(b)(c), a fictitious business name is any name for the practice other than the last name of the owner dentist or a name that suggests that the practice has more owner dentists than there actually are.
How To Form A California Professional Dental Corporation?
Here are the 9 steps you must take to form the California Professional Dental 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 “Dental.”
- Register the professional dental corporation with the Dental Board of California at https:// dbc.ca.gov/
- Conduct a corporate meeting where you will issue shares and elect officials and directors for the Professional Dental Corporation
- Create custom Dental 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 Dental 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 Medical corporation, email me at sam@mollaeilaw.com
What Happens If A Shareholder In The Professional Dental Corporation Is Disqualified Or Has Died?
If a shareholder in the professional dental corporation becomes disqualified from rendering professional services in California or dies, the corporation must acquire all the shares of the shareholder.
If the disqualified shareholder or the representative of the deceased shareholder does not transfer all the shares to the corporation, to another shareholder of the dental corporation, to a person licensed to practice the same profession, or to a licensed person, within 90 days following the date of disqualification, or within six months of the shareholders death, the certificate of registration of the dental corporation may be suspended or revoked.
Are The Shareholders Of The Professional Dental Corporation Liable For The Debts And Obligations Of The Corporation?
Generally, a shareholder of the professional dental corporation are not liable for the debts and obligations of the corporation, unless the shareholder:
- Personally guarantees a debt or obligation,
- Engages in tortious conduct,
- Receives improper distributions of the professional corporation’s assets,
- Intermingles personal and corporate matters (alter ego; piercing the corporate veil), or
- Breaches a duty owed to other
Can A California Dental Corporation Be Owned By A Single Shareholder?
Yes, a California Dental Corporation may be owned by a single shareholder. If that is the case, the shareholder must be a person licensed to practice dentistry in California and must serve as both president and treasurer for the corporation. The other officers of the corporation do not need to be licensed to practice dentistry.
How Are Professional Dental Corporations Taxed In California?
California Dental Corporations are generally by default taxed as a C-Corp, which means that its total income are taxable by both the federal and state governments at corporation tax rates. If the dental corporation is distributing dividends to shareholders, the shareholders must report the dividends as income, which is taxed both at the federal and state income tax levels. This is referred to “double taxation”.
That’s why Professional Dental Corporation should instead elect to be taxed as an S- Corporation. See below on how to do that.
How Should Professional Dental Corporations Be Taxed?
To avoid double taxation, California dental corporations are urged to file Form 2553 for S- Corporation Tax Election.
By being treated as an S-Corporation rather than a C-Corporation, the dental corporation will be treated as a pass through entity. The dentist will pay himself a salary and will take the rest as owner distribution or draw.
What To Do Next
While these following these steps above might seem straight forward, one mistake while creating your dental corporation can cause your corporation to be rejected by the Secretary of State.
As a Business Lawyer for Professionals, I’ve assisted hundreds of dentists just like you start their California Dental Corporations and I can definitely help you with yours.
If you’re a dentist looking to form your Professional Corporation, email me at sam@mollaeilaw.com or talk to me directly at 818-925-0002
Or book a call to speak to us here: https://go.mollaeilaw.com/schedule-call
3 Steps to Starting Your Acupuncture Corporation (2023)
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- Start Your Business Here »
If you’re an acupuncturist in California, you SHOULD form a Professional Corporation taxed as an S-Corporation.
If you’re an acupuncturist, you’re prohibited from forming an LLC or a traditional corporation for your acupuncture 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’m assisted hundreds of professionals just like you start their Professional Corporation and I can definitely help you start yours.
If you’re an acupuncturist looking to start your Professional Corporation, email me Ariel Mossazadeh Esq. at ariel@mollaeilaw.com or talk to me directly at 424-256-6686
What is an Acupuncture Corporation
A Acupuncture Corporation is a professional corporation which is registered with the California Secretary of State and the Acupuncture Board.
In California, all professional corporations must be registered with the corresponding government agency that is tasked to manage their profession.
3 Steps to Starting An Acupuncture Corporation
The 3 steps to starting a Professional Acupuncture 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 an acupuncturist looking to form your Professional Corporation, email me Ariel Mossazadeh Esq. at ariel@mollaeilaw.com or talk to me directly at 424-256-6686
Benefits Of Starting A Professional Acupuncture Corporation
Incorporating a professional acupuncture 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 Acupuncture Corporation
The professional acupuncture corporation’s name must include either “acupuncture” or “acupuncturist”.
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 acupuncture, based on underlying Corporate Code concerning Professional Corporations.
Who Can Be A Shareholder Of The Professional Acupuncture 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 physicians assistants, licensed chiropractors, Naturopathic doctors, Licensed professional clinical counselors, and Licensed midwives.
The number of licensed persons cannot exceed the number of acupuncturists, 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 acupuncture corporation may only be transferred to those who are licensed to practice registered acupuncture medicine, to a shareholder of the corporation or to the professional acupuncture corporation itself. If a shareholder becomes ineligible to practice acupuncture in California or is legally disqualified from rendering professional services to the Professional Acupuncture Corporation, she must sell or transfer her shares to a qualified shareholder within 90 days of her ineligibility or disqualification.
Can An Acupuncture Corporation Be Opened As An LLC In California?
A acupuncture 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 acupuncture.
For a acupuncturists to provide professional services in California, they must open a Professional Corporation.
Can An Acupuncture Corporation Use a DBA Or Fictitious Name?
In California, an acupuncture corporation can use a fictitious name so long as they file a fictitious business name statement within 40 days of starting the acupuncture 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 Acupuncture Corporation
Here are the 9 steps you must take to start a Professional Acupuncture 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 “Acupuncture”.
- Conduct a corporate meeting where you will issue shares and elect officials and directors for the Professional Acupuncture Corporation
- Create Acupuncture 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 Acupuncture 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 Acupuncture Corporations and I can definitely help you with yours.
Looking to form your Professional Corporation? Email me Ariel Mossazadeh Esq. at ariel@mollaeilaw.com or talk to me directly at 424-256-6686
3 Steps to Starting Your Medical Professional Corporation in 2024
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If you’re a doctor in California, you SHOULD form a medicine professional corporation taxed as an S-Corporation as you cannot open like a traditional LLC.
California law prohibits doctors from forming LLCs or a traditional corporation for their medical practices. Instead, you 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. You may even face discipline from the Medical Board of California.
As a Business Lawyer for Professionals, I’ve assisted hundreds of doctors and physicians just like you start their Professional Corporation and I can definitely help you start yours.
If you’re a doctor and you need help opening a medical practice, email me at sam@mollaeilaw.com or talk to me directly at 818-925-0002
California Professional Medical Corporation Benefits
A Professional Medical Corporation is a special type of corporation that doctors and physicians must form if they’re offering a professional service (for basically working as a doctor or opening a medical practice).
There are plenty of benefits of incorporating a professional medical corporation in California.
Correctly starting a medicine professional corporation in California will limit your personal liability against creditors and lawsuits, minimize the self-employment taxes of the shareholders, pass profits and losses through the shareholders to avoid double taxation, allow you to build corporate business credit, and much more.
3 Steps to Starting a Medical Professional Corporation
The 3 steps to starting a Medical 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, have California Professional Medical 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 doctor or physician looking to form your Professional Corporation, email me sam@mollaeilaw.com or talk to me directly at 818-925-0002
Professional Medical Corporations Requirements
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.
A professional medical corporation must be officially registered with the Medical Board of California. California medical corporations must also abide by Title 16 of the California Code of Regulations, in regards to Medical Professional Corporations.
Name Requirements of Professional Medical Corporation
The medicine professional corporation’s name must include the name or surname of one or more of the present prospective or former stockholders of the Corporation.
Who Can Be A Shareholder In A Professional Medical Corporation?
Licensed individuals in the following professions can be issued stock in a professional medical corporation:
- Licensed doctors of pediatric
- Licensed psychologists.
- Registered
- Licensed optometrists.
- Licensed marriage and family
- Licensed clinical social
- Licensed physician assistants.
- Licensed chiropractors.
- Licensed acupuncturists.
- Naturopathic
- Licensed professional clinical
- Licensed physical therapists.
- Licensed pharmacists.
Any of the above-listed professionals can be issued stock in the professional medical corporation as long as they do not own more than 49% of the total stock of the medical corporation.
Also, the number of non-doctor shareholders cannot outnumber the number of persons licensed by the Medical Board of California.
Can A Professional Medical Corporation in California Use A Fictitious Business Name?
Yes, according to Section 2415 of the California Code of Regulations, if you will be opening your medical corporation under a fictitious name, you must file a fictitious name permit with the Medical Board of California.
You can apply and find out more about the fictitious name permit here: http://www.mbc.ca.gov/Applicants/Fictitious_Name/
The proposed name cannot be misleading, deceptive, confusing, or similar to a previously issued name.
When Is It A Requirement To Obtain A Fictitious Name Permit?
A fictitious name permit is required if you are a licensed physician and surgeon, or podiatrist, practicing under a fictitious, false or assumed name in any public communication, advertisement, sign or announcement.
Do You Always Need A Fictitious Name Permit For A Medical Corporation?
No, you do not always need a fictitious name permit for a medical professional corporation. The name and last name of the physician or podiatrist is used, followed by Medical Doctor, M.D., Podiatrist, Doctor of Pediatric Medicine, D.P.M., Medical Corporation, Medical Corp., Podiatry Corporation, Podiatry Corp., Professional Corporation, Prof. Corp., Corporation, Corp., Incorporated or Inc.
Examples: “John Doe Medical Corporation” or “John Doe, M.D. Inc.”, then no fictitious name permit is required. However, the physician’s name must match the legal name on the physician’s medical license.
Are There Any Specific Name Requirements For Fictitious Name Permits?
Yes. The proposed name cannot be misleading, deceptive, confusing, or similar to a previously issued name. Also, a doctor of podiatric medicine must include the designation “pediatric,” “podiatry,” “podiatrist,” “foot” or “ankle.”
Do You Need To Incorporate With The Secretary Of State Before Applying for A Fictitious Name Permit?
Yes, the Medical Board of California requires a copy of the Articles of Incorporation to ensure that the corporation is active and is a professional medical corporation.
If a corporate name is issued by the Secretary of State and is not available as a fictitious name, the physician has the option of amending the corporate name to match the fictitious name.
This amendment should be done after the fictitious name has been issued by the Board. The corporate name may be different from the fictitious name. Also, the approval of the corporate name does not give permission to advertise that name to the public if it is a fictitious name.
Do You Need To Inform the Medical Board If You Decide To Amend The Medical Corporation’s Name?
No, the Medical Board would only need to be notified if there is a complete change of the medical corporation. This would only apply to physicians who have a fictitious business name with the Medical Board. Any other corporate matters should be addressed to the Secretary of State.
How To Form A California Professional Medical Corporation
Here are the 9 steps you must take to form a California Professional Medical 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 “medical”
- Conduct a corporate meeting where you will issue shares and elect officials and directors for the Professional Medical Corporation
- Create custom California Professional Medical 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 Medical 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 Medical Corporation, email me at sam@mollaeilaw.com or talk to me directly at 818-925-0002
Can A California Medical Corporation Be Owned By A Single Shareholder?
Yes. A California Medical Corporation may be owned by a single shareholder.
If that is the case, the shareholder must be a person licensed to practice medicine in California and must serve as both president and treasurer for the corporation. The other officers of the corporation do not need to be licensed to practice medicine.
What Happens If A Shareholder In The Professional Medical Corporation Is Disqualified Or Has Died?
If a shareholder in the professional medical corporation becomes disqualified from rendering professional services in California or dies, the corporation must acquire all the shares of the shareholder.
If the disqualified shareholder or the representative of the deceased shareholder does not transfer all the shares to the corporation, to another shareholder of the medical corporation, to a person licensed to practice the same profession, or to a licensed person, within 90 days following the date of disqualification, or within six months of the shareholders death, the certificate of registration of the medical corporation may be suspended or revoked.
Are The Shareholders Of The Professional Medical Corporation Liable For The Debts And Obligations Of The Corporation?
Generally, a shareholder of the professional medical corporation is not liable for the debts and obligations of the corporation, unless the shareholder:
- Personally guarantees a debt or obligation,
- Engages in tortious conduct,
- Receives improper distributions of the professional corporation’s assets,
- Intermingles personal and corporate matters (alter ego; piercing the corporate veil), or
- Breaches a duty owed to other
How Are Professional Medical Corporations Taxed In California?
California Medical Corporations are generally taxed as a C-Corp, which means that its total income is taxable by both the federal and state governments at corporation tax rates.
If the medical corporation is distributing dividends to shareholders, the shareholders must report the dividends as income, which is taxed both at the federal and state income tax levels. This is referred to as “double taxation”.
S-Corporation Tax Election for Medical Professional Corporations
To avoid double taxation, California medical corporations are urged to file Form 2553 for S- Corporation Tax Election. By being treated as an S-Corporation rather than a C-Corporation, the medical corporation will be treated as a pass-through entity.
The doctor will pay himself a salary and will take the rest as owner distribution or draw.
What To Do Next
While these following these steps above might seem straight forward, one mistake while creating your medical corporation can cause your corporation to be rejected by the Secretary of State.
As a Business Lawyer for Professionals, I’ve assisted hundreds of doctors and physicians just like you start their California Medical Corporations and I can definitely help you with yours.
Call me directly at 818-925-0002 or email me at sam@mollaeilaw.com to get started NOW
