business formation
In the State of California, the privilege of practicing a licensed profession comes with specific regulatory requirements regarding business structure. Unlike standard commercial enterprises, many licensed professionals are prohibited by law from forming a Limited Liability Company. Venture Business Law specializes in the formation and maintenance of Professional Corporations under the Moscone-Knox Professional Corporation Act.
Under the California Corporations Code, individuals licensed by the Department of Consumer Affairs, the State Bar, or various medical boards must provide their services through a Professional Corporation or a specialized partnership.
California law maintains that the professional relationship between a practitioner and a client requires a higher level of accountability. Consequently, the Secretary of State will generally reject Limited Liability Company filings for professions such as medicine, law, accounting, and dentistry.
To remain valid, a Professional Corporation must strictly adhere to the Moscone-Knox Professional Corporation Act. Failure to comply can lead to the suspension of your corporate status or disciplinary action by your licensing board.
With few exceptions, all shareholders must be licensed to practice the specific profession for which the corporation was formed.
The directors and officers of the corporation must also be licensed individuals. For solo practitioners, California law allows a single individual to serve as the sole director, president, and treasurer.
Each profession has specific naming requirements. For example, a dental or medical corporation must often include the name or surname of one or more shareholders and a specific designator such as Professional Corporation or Medical Corporation.
Venture Business Law provides an end-to-end solution to ensure your practice is established correctly from day one.
Draft and file specialized articles that include the mandatory statutory language required for professional entities
Facilitate the formal appointment of directors and officers in accordance with your professional licensing board rules.
Create custom bylaws that address the unique ownership restrictions and share transfer limitations inherent in professional practices.
Where required, we assist in obtaining the necessary certificate of registration from your specific state board, such as the State Bar of California or the Medical Board.
Provide a complete corporate record book, including initial minutes and stock certificates issued in compliance with professional standards.
Draft and file specialized articles that include the mandatory statutory language required for professional entities
Facilitate the formal appointment of directors and officers in accordance with your professional licensing board rules.
Create custom bylaws that address the unique ownership restrictions and share transfer limitations inherent in professional practices.
Where required, we assist in obtaining the necessary certificate of registration from your specific state board, such as the State Bar of California or the Medical Board.
Provide a complete corporate record book, including initial minutes and stock certificates issued in compliance with professional standards.
Strategic planning is essential for the longevity of any professional practice. Secure video consultations are provided to discuss the structural and regulatory needs of your firm.
Feature
Professional Corporation
General Partnership
Registered LLP
Entity Type
Corporate
Partnership
Specialized Partnership
Liability Shield
Comprehensive
None
Limited to Errors
Tax Options
C-Corp or S-Corp
Pass-Through
Pass-Through
Availability
All Licensed Fields
All Fields
Limited (Law/CPA/Arch)
I am an active member of the State Bar of California (#361178). All services provided through Venture Business Law P.C. are California legal services. I am also a non-practicing solicitor in England and Wales; I do not provide legal services as a solicitor.
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