3 Steps to Start Your Audiology Professional Corporation 2023

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

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.

Shares of stock in the Audiology corporation may only be issued to people who are licensed to practice audiology. However, licensed speech-language pathologists may also hold shares, or be officers, directors, or professional employees as long as shares owned by licensed speech- language pathologists do not total more than 49% of all shares in the corporation. Any shares issued to others who do not practice speech language pathology or audiology are void.

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

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

Can An Audiology Corporation Be Opened As An LLC In California?

An audiology corporation cannot be opened as an LLC in California. The California Corporations Code does not certify LLCs (Limited Liability Companies) for the purpose of practicing audiology. For an audiologist to provide professional services in California, they must open a Professional Corporation.

Can An Audiology Corporation Use a DBA Or Fictitious Name?

In California, an audiology corporation can use a fictitious name so long as they file a fictitious business name statement within 40 days of starting the audiology corporation. You must also make a fictitious name filing in every local county recorder’s office for which you are practicing.

How To Form A California Audiology Corporation

Here are the 9 steps to start an Audiology Professional Corporation:

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. Conduct a corporate meeting where you will issue shares and elect officials and directors for the Professional Audiology Corporation
3. Create custom Audiology 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 Audiology 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