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3 Steps to Starting Your Audiology Professional Corporation (2020)

Audiology Professional Corporation

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’m 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 Ariel Mossazadeh Esq. at ariel@mollaeilaw.com or talk to me directly at 424-256-6686

 

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

The 3 steps to starting a Professional Audiology 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 Ariel Mossazadeh Esq. at ariel@mollaeilaw.com or talk to me directly at 424-256-6686

 

Who Can Be A Shareholder Of The Professional Audiology Corporation?

Each director, shareholder, and officer of the professional Audiology corporation MUST be licensed to practice audiology in California.

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 10 steps to start an Audiology Professional 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 “Audiology”.
  2. Register the Corporation with the Speech-Language Pathology and Audiology Board by providing the Board with an original proof of your Articles of Incorporation from the Secretary of State.
  3. Conduct a corporate meeting where you will issue shares and elect officials and directors for the Professional Audiology Corporation
  4. Create custom Audiology 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 Audiology 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

If you’re interested in forming your California Professional Corporation, email me at ariel@mollaeilaw.com or talk to me directly at 424-256-6686

 

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 Ariel Mossazadeh Esq. at ariel@mollaeilaw.com or talk to me directly at 424-256-6686

Sam Mollaei, Esq.

As a Business Lawyer for Entrepreneurs, I help entrepreneurs start their U.S. business without dealing with complicated government forms. I’ve assisted more than 2,246 entrepreneurs successfully start their business and I'm backed by more than 702 5-Star Google Reviews. If you're interested in starting your business, take the first step by requesting your Free Strategy Session on this page.

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