Professional Entities

Specific documents need to be drafted for the formation of a professional corporation. These are the general guidelines that need to be followed, along with state-specific requirements:

• Articles of Incorporation: A clear statement that says the corporation intends to provide professional services.
• Company Name: Certain language needs to be used in the name, such as professional corporation, service corporation, or professional association. This term can be added at the end of the name in the form of abbreviations if desired. However, there are extensive rules and regulations for each profession as to what name is permitted and how the business must be structured to allow the desired name to be used.
• Defining Purpose: Information about the purpose of the corporation. For example, a professional corporation of doctors would list the purpose of the corporation as an offering of medical services.
• Licensing Board Approval: Finally, the documentation needs to be provided to a local licensing approval board. Attorneys, for example, must have their law corporation approved of by the State Bar. It is crucial that this step is not overlooked, failure to do this will jeopardize the business owner’s license and could result in a variety of other significant issues resulting as well.