By-laws describe the agreed rules governing the operations of the Professional Corporation.
A professional corporation, also known as a professional services corporation (PC) in California, is a specific type of business organization formed to provide professional services such as legal, medical, dental, accounting, engineering, architectural, and other licensed professional services. In California, professional corporations are specifically designed for professionals who wish to form a corporation but are subject to licensing requirements or regulations by their respective state boards. By incorporating as a professional corporation, the owners, known as shareholders, gain limited liability protection against any legal or financial claims resulting from the professional services provided by the corporation's employees. Some key features and benefits of a professional corporation in California include: 1. Limited Liability: Shareholders are generally not personally liable for the corporation's debts, liabilities, or malpractice claims against other shareholders for professional negligence. 2. Tax Advantages: Professional corporations can take advantage of various tax benefits, including deductions, fringe benefits, and the ability to defer income. 3. Organizational Structure: Professional corporations in California must have a specific organizational structure, with shareholders, officers, and a board of directors. Shareholders are typically professionals licensed in the same field as the corporation's primary business. 4. Licensing Requirements: Shareholders of a professional corporation must be licensed professionals in their respective fields and cannot shield themselves from personal malpractice claims resulting from their own negligence. Regarding different types of professional corporations in California, they generally vary based on the specific professional services they provide. Here are some examples: 1. Legal Professional Corporation (PC): These corporations are formed by attorneys who provide legal services, such as law firms specializing in various areas of law. 2. Medical Professional Corporation (MPC): These corporations are formed by healthcare professionals, including doctors, physicians, surgeons, and other licensed medical specialists. Examples include medical group practices, clinics, or surgical centers. 3. Dental Professional Corporation (DPC): These corporations are formed by dentists and dental specialists, such as orthodontists, periodontists, or oral surgeons. Dental offices or specialized dental clinics can be structured as DPC's. 4. Accounting Professional Corporation (APC): These corporations are formed by certified public accountants (CPA's) or accounting firms providing auditing, tax preparation, or financial consulting services. 5. Engineering, Architectural, and Other Licensed Professional Corporations: These corporations are formed by professionals in engineering, architecture, surveying, and other licensed fields, offering their specialized services to clients. In conclusion, professional corporations in California provide licensed professionals with the ability to form a corporation while still maintaining limited liability protection. Different types of professional corporations exist depending on the specific professional services offered, such as legal, medical, dental, accounting, engineering, architectural, and more. By incorporating as a professional corporation in California, professionals can benefit from the legal protections and tax advantages associated with this business structure.
