If you are a professional chiropractor in California, you should know that the state positions you on the highest standard.
The state knows what role you play as a professional when it comes to upholding the public’s safety and serving them. So, does that mean you can form any business structure you want?
Not really. The same goes for the answer to the question of can a chiropractor have an LLC in CA. You can not form an LLC as a professional chiropractor operating in California. The reason?
California does not want you to limit your liability for the mistakes you could make while practicing.
So, which structure should you choose? And what else should you know about this issue? Well, this discussion has all the information you are looking for!
What Structure Should You Choose As A Chiropractor in CA?
If you are a professional chiropractor, you need to choose the Chiropractic Corporation. And for the tax status, you can select an S Corp or a C Corp, which are the only options for a professional corporation.
Generally, professionals opt for the S Corp due to the taxation benefits.
Nonetheless, you are not allowed to form an LLC or any other traditional corporation if you practice as a chiropractor. Having your organization register as a Professional Corporation is a must! And while doing so, you should follow all of the steps correctly.
If you fail to carry out a single step properly, the Secretary of the State will reject your professional Chiropractic Corp.
That will eventually leave your corporation vulnerable to different sorts of fines and potential lawsuits. All of these fines and cases will come from various government agencies.
In fact, the California State Board might issue a fine for your corporation if you fail to carry out a single step. That is why it is crucial to go through each step with utmost care and sincerity.
What Is A Chiropractic Corporation?
Basically, when a corporation has the registration of the California State Board of Chiropractic Examiners and the California Secretary of the state, it becomes a professional Chiropractic corporation.
Now, this requirement is not limited to chiropractors only.
All of the professional corporations that are operating within California must register themselves with the corresponding government agencies. The state will make these agencies manage the profession they are assigned with.
A professional Chiropractic Corporation should also hold a certificate of registration from the California State Board of Chiropractic Examiners. Without that, your corp will be vulnerable to many sorts of fines.
What Are The Benefits of A Chiropractic Corporation?
When you are incorporating yourself as a Professional Chiropractic Corporation in CA, you will limit your liability. And it will be restricted to lawsuits and creditors.
You will also significantly minimize the taxes for the self-employment of the shareholders. That is something most professionals look for.
Additionally, the Professional Chiropractic Corporation will enable you to corporate business credit. And there are other advantages as well.
How Can You Form A Professional Corporation As A Chiropractor?
To form the Professional Chiropractic Corporation, you just need to go through these steps:
- First, you should work with the Articles of Incorporation. You need to file them with the Secretary of State and pay the filing fee. On that note, the fee will vary.
- While filing, you should state within its Articles of Incorporation that the purpose of the articles is “Chiropractic Medicine.”
- Once you are done with the filing, you need to conduct a corporate meeting. There, you elect officials and directors for your Professional Chiropractic Corporation. Additionally, you will issue shares in the meeting.
- After that, the next step would be to create custom Professional Corporation bylaws.
- And then apply for an EIN.
- When the application process for the EIN is done, work with the Statement of Information. You need to file it with the Secretary of the State.
- Next, work with Form 2553 for S-Corporation Tax Election.
- You should also pay California Corporate Taxes and Fees. These will go to the California Franchise Tax.
- If you are hiring employees, register with the EDD.
- Apply for local business licenses and registration.
So, can a chiropractor have an LLC in CA? The simple answer is no. If you are practicing as a chiropractor in California, you can not form an LLC.
Instead, you should form a Professional Corporation. In this case, the structure will be a Professional Chiropractor Corporation.
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