Governing Law A professional corporation is governed by state law, and states place certain restrictions on who may own shares in the corporation. For example, in many states, only those who are of the same profession may be owners of a professional corporation.
What is a legal professional corporation?
A professional corporation is a corporation that carries on a professional practice. Examples of professionals that may incorporate their practices include medical doctors, dentists, veterinarians, chartered accountants, certified general accountants and lawyers.
Can a lawyer work in a professional corporation?
If you are a salaried employee, the answer is no. Salaried income may not be earned through a professional corporation, so this will be an important consideration. As professionals begin their career, many will begin as salaried employees. This is especially true for lawyers and accountants who practice in firms.
How to become a shareholder of a law corporation?
A shareholder of a law corporation must be licensed and entitled to practice law. The shares of a law corporation must be owned only by that corporation or a shareholder. The shares of a deceased shareholder must be sold or transferred to the law corporation or its shareholders within six months and one day following the date of death.
How to become a law corporation in California?
Every Law Corporation is required to have a Certificate of Registration before it can be considered as a Professional Law Corporation and before it can engage in business. This can be obtained from the State Bar of California.
Can a professional corporation be a regular Corporation?
In other states, some professionals have a choice of incorporating as either a professional corporation or a regular corporation. And in all states, certain professionals are allowed to form professional corporations or professional service corporations.
