California Professional Corporation Requirements
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FAQ
California requires certain professionals?such as lawyers, accountants, and engineers?to create a professional corporation rather than the traditional corporation. Unlike many other states, California doesn't allow professionals to form a limited liability company (LLC) or professional LLC (PLLC).
ByStep Guide to Forming a California Professional... Pick a Name. ... Appoint a Registered Agent for Service. ... File the Article of Incorporation and Initial Statement of Information. ... Designate Corporate Directors. ... Prepare Corporate Bylaws. ... Share Issuance. ... Call for Your First Board Meeting.
As a general matter, if your job requires a license and/or you render professional services, you cannot form an LLC for your line of work in California. The California Corporations Code provides very few exceptions to this rule, most notably for contractors.
If your business meets the qualifications, S corporation status allows you to avoid double taxation, thus increasing your net profits. In many states, licensed professionals are not permitted to operate as regular corporations. However, a professional corporation is an alternative that provides limited liability.
What Is A California Professional Corporation? Members of certain professions, such as lawyers, doctors, accountants, and engineers, may form a California professional corporation (also known as a ?PC?). Typically, these types of entities provide services only through licensed professionals.