What is a professional corporation?
A professional corporation is organized to carryout one or more professional services, and the shareholders of the professional corporation must be licensed or authorized to practice a certain profession, which includes accountants, architects, engineers, attorneys, dentists, physicians, veterinarians, real estate salespeople and registered nurses. The articles of incorporation filed to form a professional corporation must be accompanied by a certificate of the licensing authority of the subject profession. Professional corporations are managed in a manner similar to general corporations, though all directors and officers of a professional corporation, other than the secretary, must be qualified persons with respect to the underlying profession of the entity. The shares of a professional corporation may only be owned by similarly qualified persons, or by partnerships, other professional corporations or limited liability companies, which are wholly owned by other licensed individuals.
Professional corporations are formed by those persons licensed to practice certain professions which are eligible to be shareholders in this type corporate entity. Those professions eligible to organize vary from state to state but normally include: accountants; architects or engineers; attorneys at law; chiropodist-podiatrists; chiropractors; dentists; optometrists; physicians, surgeons, doctors of medicine or doctors of osteopathy; psychologists; veterinarians; registered nurses; any natural person licensed as a real estate salesperson; and physical therapists.
Professional Corporations: A professional corporation/professional association is an individual or group of individuals, who are licensed in their profession as required by law, and have incorporated for the purpose of rendering the same professional service (doctors, dentists, architects, etc.). Professional corporations generally may not conduct any other business, must comply with particular conventions in their choice of corporate name (Example, Johnson & Apple, P.A.), and must comply with regulatory requirements of their respective regulating agency. A professional corporation may be taxed as either a traditional C corporation or as an S corporation. Membership requirements: All members must be licensed to provide a given professional service. See the specific regulating agency for additional state licensing requirements that may apply to your profession.
Florida Incorporation Service can also complete the documents necessary to create your professional corporation. A professional corporation/professional association is an individual or group of individuals, who are licensed in their profession as required by law, and have incorporated for the purpose of rendering the same professional service (doctors, dentists, architects, etc.). Professional corporations generally may not conduct any other business, must comply with particular conventions in their choice of corporate name (Example, Johnson & Apple, P.A.), and must comply with regulatory requirements of their respective regulating agency. A professional corporation may be taxed as either a traditional C corporation or as an S corporation. Membership requirements: All members must be licensed to provide a given professional service. See the specific regulating agency for additional state licensing requirements that may apply to your profession. Professional Corporations (Tax Implicatio
