I am a dentist and have been told that I need to form a professional corporation. What is the difference between a corporation and a professional corporation? Are there restrictions on naming my professional corporation?
A Professional Corporation (PC) is formed for the purpose of providing professional services. Professions which require a license are required to form PCs to incorporate their business. Medical professionals may also form a Professional Limited Liability Company (PLLC). Many states restrict who may own stock in a Professional Corporation. In some states, the shareholders and the board of directors must be licensed practitioners of the specific service the corporation provides. Other states require that at least half of the shareholders and directors are licensed professionals.
Professional Corporations must include the words Professional Corporation or the letters PC in their name. Depending on the type of professional services provided, or business entity elected, it may be Professional Association or PA, or PLLC for a Professional Limited Liability Company. Your state statutes will most likely identify which description may be used.
Some states may require the profession to be part of the business name. The business formation documents often require approval from the state before filing the appropriate Articles of Incorporation or Organization. In addition, the articles typically must contain the signature and often the "license number" of the incorporator who must be a licensed professional.
incorporate.com can assist you to form your Professional Entity online. We have formed thousands of businesses nationwide for professionals just like you. Let one of our Business Specialists help you get started now. The process to form a Corporation or LLC online takes as little as 10 minutes. Simply call 800-818-6082 or (302) 636-5440. Or, you can email us for more information at email@example.com.