Can Your Company Create a California Professional Corporation?

San Diego business attorneys at Gehres Law Group provide advice to companies on how best to structure their business entity. This decision should ideally be made with the help of business formation attorneys when operations first begin. However, as companies expand and change, many alter their business structure. Making changes to the type of business entity could also become necessary as a result of regulatory changes, such as tax reform, that makes a particular organizational type more or less attractive. 

There are many different kinds of business entities that could be created. One option for California companies is to operate as a California professional corporation. This option is not available to all businesses, but companies that are eligible to operate as a professional corporation should work with an experienced attorney to understand the option and to determine which business entity makes the most sense.

Can Your Company Operate as a California Professional Corporation?

The California Corporations Code establishes the rules and requirements for when a company may operate as a professional corporation. In particular, the Mascone-Knox Professional Corporation Act details exactly when a company may operate as this type of business entity. The types of entities which may operate as a professional corporation include attorneys (Gehres Law Group is organized as a professional corporation), some medical professionals, CPA’s, psychiatrists, psychologists, and others. These types of organizations may not operate as a limited liability company.

The relevant law stipulates that a professional corporation is organized under the Moscone-Knox Professional Corporation Act and the General Corporate Law. The professional corporation must generally be engaged in the business of rendering professional services in a single profession.

The professional services that are offered through the professional corporation must include services that are lawfully provided to the public only by someone who is licensed, certified, and/or registered.  The licensing, certification, or registration must be documented in the Business and Professions Code, the Osteopathic Act, or the Public Accountancy Act.

Any organization that operates as a professional corporation must do so pursuant to a certificate of registration that has been issued by the appropriate regulatory body with jurisdiction over the profession and with authority over the way in which that the profession is practiced, such as the State Bar of California. A business that chooses to operate as a professional corporation must make certain to designate that it is operating as this specific type of business entity and in compliance with the rules promulgated by the regulatory body governing such profession.

Getting Help from San Diego Business Attorneys

The San Diego business attorneys at Gehres Law Group will provide guidance and advice on whether your organization is eligible to operate as a professional corporation. If you can and should operate as a professional corporation, we can assist you in completing the required process to create your corporation and give your business it’s own identity in the eyes of the law. If a professional corporation is not an option for you, or is not the correct option based on your circumstances, our business formation lawyers can provide assistance in selecting the type of company structure that is right for you.

To find out more about how Gehres Law Group can provide you with assistance in forming the right type of business entity to accomplish your company goals and provide your company with desired protections, give us a call at 858-964-2314 or contact us online today for your complimentary consultation.

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