Professional Corporation Bylaws California Withholding
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FAQ
California professional corporations can be taxed two ways: (1) as a C corporation or (2) as an S corporation. The C corporation and S corporation designations are made with the IRS, while the professional corporation, itself, is formed with the California Secretary of State. The first step is to file with the CA Sec.
California corporations must of course also comply with federal laws in addition to California laws. For example, corporations must obtain a federal Employer Identification Number (EIN).
A professional corporation conveys limited liability to its members just as a regular corporation. However, in most cases, the corporation does not convey limited liability for the malpractice of the individual members. Ideally, professionals manage that type of risk through malpractice insurance policies.
The incorporation costs are normally considered as a one-time cost. The cost to form a California Corporation includes: You can form a General Stock Corporation or a Professional Corporation. The cost to form a California Corporation by filing Articles of Incorporation is $100.
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.