As A Nurse, What Type Of Business Should I Create?

It is not that easy to start your own business as a professional. Some states, such as California, restricts some professional from choosing particular business types.

For example, if you are a nurse, you can not legally start an LLC. In fact, you can not even register for a traditional general corporation.

 

Now, you might be wondering, as a nurse, what type of business should I create? Well, you need to register for the Professional Corporation structure. However, you can not just form a regular Professional Corp as a nurse practitioner.

Instead, you would need to create a Professional S Corp. Want to learn more about the nursing professional corporation? You need to give our discussion a read!

Call me anytime about your legal concerns. Just email sam@mollaeilaw.com.

What Does The Nursing Professional Corporation Mean?

Let us first discuss S Corp. As you might have guessed, it is similar to Professional C Corporation. But one of the key differences is that Professional S Corp can only have 100 shareholders.

Another structure that S Corporation is similar to the partnership structure. S Corps are pass-through organizations. And that is why the profits do not require to be taxed twice. They will only need to pay the tax once.

Nonetheless, some of the factors make Professional S Corporations unique. First, the S Corp can only offer one class of stock.

And the shareholders will be limited to being particular estates, trusts, or individuals. This Corp should also create a tax based on the calendar year.

So, what is Nursing Professional Corp? It is a Professional Corporation that requires to be registered with the Secretary of the State. The Corp also needs to be listed with the Board of Registered Nursing. At least, those are the cases for California.

This registration is because the professionals of California need a corresponding governmental agency certificate to operate. It is a mandatory requirement.

That said, you need to be a little careful when starting your Professional Corporation as a nurse.

The Secretary of the State will reject your business without correctly forming the corporation. That will eventually make your establishment vulnerable to potential fines and lawsuits.

But who will do these fines and lawsuits? Well, it could be from governmental agencies. Also, the Board of Registered Nursing can issue lawsuits and fines.

So, you must take every step to form the Nursing Professional Corp or S Corp seriously.

Call me anytime about your legal concerns. Just email sam@mollaeilaw.com.

How Do I Start A Professional Nursing Corporation?

Starting the Professional Nursing Corporation can worry you at the beginning. However, let us assure you that it is not as hard as you might have been thinking it is. You just need to go through these steps properly:

Step 1: File The Correct Articles

Before anything else, you need to work with the correct articles. These articles are for the Incorporation of a Professional Corp. Therefore, to start the Professional Corporation correctly, you should file them with the Secretary of the State.

Step 2: Notify The State Agency And Carry Out Other Necessary Tasks

After you file the articles, you should notify the state agency that is managing your professional. You would also need to hold a Board of Directors meeting and appoint the directors.

Then, draft the Professional Corporation Bylaws. You should also apply for EIN (Employe Identification Number) and file the statement of Information. Moving forward, you should file Form 2553 for S corp.

And when you are done with these, you can take a breath of relief as you have passed through the most tedious tasks.

Step 3: Taxes And Registration with EDD

Once you are done with step 2, you must pay corporate taxes. It is yet another crucial task to ensure that you start your Corp properly. Also, you should register the Corp with the EDD (Employment Development Department).

After all of that, apply for the local business registration. And with that, you will be done with the formation of the Nursing Professional Corp.

Call me anytime about your legal concerns. Just email sam@mollaeilaw.com.

Final Words

Are you still wondering, as a nurse, what type of business should I create? Well, depending on your state, the only option would be to form a Professional S Corp.

And as you know by now, the process to start the Nursing Corporation is not as hard as many think it is. You just need to go through the steps correctly.

Call me anytime about your legal concerns. Just email sam@mollaeilaw.com.

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