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Since individuals that provide professional services are generally held to a higher standards, most states have specific rules as to how they must file their business structure. Corporations providing professional services as defined by their state are required to file a professional corporation.

Here at DoMyLLC, our trained LLC specialists understand the needs of small businesses and are dedicated to providing excellent customer service. Incorporating with DoMyLLC takes 15 minutes of your time. Simply place an order and provide a signature if needed. We make it that easy to DO.

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Have Questions? Speak with a DoMyLLC specialist at (888)-DoMyLLC (366-9552).

Overview

Just like a General for Profit Corporation, a Professional Corporation is business structure that offers assett protection to professionals that own and operate the company. A Professional Corporation is a separate legal entity that can raise capital, build credit, enter into contracts and be sued like an individual.

Professional Services generally consist of:

Lawyers & Law firms.
Doctors & Dentists.
Accountants & CPA’s.
Architects.
Financial Advisers.
Other licenses professional as defined by the state.

Formalities & Taxation

Professional Corporations are required to comply with all corporate formalities. They are required to hold annual meetings, record minutes and issue stock. Along with internal requirements they must also complete annual state reporting and file taxes.

Professional Corporations are subjected to double taxation’s unless the elect to be an S-Corporation. They have the same taxation options as a General for Profit Corporation.

Frequently Asked Questions

What is the difference between a corporation and an LLC?

The main between the two are the formalities. Corporations are required to hold annual meetings, take meeting minutes and issue stock. With an LLC, the company is not required to hold meetings, take meeting minutes or issue stock. Do to the fact that there are far less formalities in an LLC, they have become a very popular entity structure in recent years. If you have questions, please contact our office toll free at (888)-DoMyLLC (366-9552).

What is considered professional services?

Lawyers & Law firms
Doctors & Dentists
Accountants & CPA’s
Architects
Financial Advisers
Other licensed professional as defined by the state

To find out if a business activity is considered a professional service please contact our office toll free at (888)-DoMyLLC (366-9552).

Who owns a Professional Corporation?

The owners of a Professional Corporation are called “Shareholders.” The shareholders own the company based on how much stock they have purchased.

Example: Brian and Suzy decide to open up a general healthcare office in the community. The Articles of Incorporation state that they are authorized to issue 1500 shares of stock. Brian purchases 600 shares of stock and Suzy purchases 400 shares. Since 1000 shares have been issued and Brian owns 600, he would own 60%. Since Suzy owns 400 shares, she would own 40%. (Keep in mind there are still 500 shares left that can be sold at a later date which will affect ownership % once they are sold).

What information is needed when forming a Professional Corporation?

The information needed to file the Corporation:

Corporate name
Business address
Registered agent and physical address
Officers of the Professional Corporation
Directors of the Professional Corporation
Authorized shares and par value
Business activity

What is a Board of Directors?

The Board of Directors are appointed by the shareholders. The directors jointly oversee the activities of the company. It is the responsibility of the board members to carry out the orders of the shareholders. In most small corporations the Board of Directors are also the shareholders.

Who are officers in a Professional Corporation?

Officers are responsible for running the day to day activities of a corporation. Officers are generally appointed by the board directors. Although many different officer positions may be appointed, there are three main officers in a Professional Corporation:

President – Is the top executive in the company. They are responsible for the overall management of the company and ensure the duties set forth by the Board of Directors are carried out.
Secretary – Is generally responsible for maintaining all corporate records and documents.
Treasurer – Is the chief financial officer of the company and is responsible for all corporate finances and bank accounts.

What is a Registered Agent?

A Registered Agent is a person or authorized entity, who can accept legal documents and notifications from a government office on behalf of an LLC. All LLCs must designate a person or entity to act as their registered agent. The agent can be anyone in the state as long as they are at a physical location and available during normal business hours. Our office includes this service in our package in order to ensure proper state requirements are met. For more information on our registered agent services please click here.

What is the process once you complete an order?

Review & Processing – Your order will be reviewed and processed by one of our document filing specialists.
Signature – Documents need to be signed.
State Approval – the documents will be sent to the state for approval.
Completion – Once we receive the final paperwork back from the state, we complete your order and send the final documents for your records.

What will I receive in my package?

All standard packages include the following:

Filed Articles of Incorporation
Customized Bylaws
Minutes for Meeting
Stock Certificates
Registered Agent Service for 1 year
Document Storage
Compliance Reminders & Tips

What is required once the Professional Corporation paperwork is completed?

Most states require that a Professional Corporation file an annual report with the state and pay a filing fee. The company is also required to file taxes just like an individual. Our office can assist with the annual report filing, however, we are unable to assist with taxes (speak with a CPA or tax professional).

How do I file taxes for a Professional Corporation?

The best way to find out about taxation questions for your business would be to speak with an accountant. Here at DoMyLLC we specialize in prepare state paperwork and are not qualified to answer specific tax questions.