A professional corporation is a corporation created under state law for the purpose of practicing a particular profession in corporate form. Generally only a professional licensed to practice the profession being practiced by the professional corporation may be a shareholder in such a corporation.
The following businesses may incorporate as professional corporations:
- Clinical Social Work
- Marriage and Family Therapy
- Natuopathic Doctors
- Physical therapy
- Physician assistants
- Speech-language pathology and audiology
- Shorthand court reporters
Architecture firms may incorporate under the Professional Corporations Act, or under the General Corporation Law.
In general, a professional corporation is formed in the same manner as a C corporation and is subject to the same general requirements. The General Corporation Law applies to professional corporations, except when its provisions are in conflict with or inconsistent with the Moscone-Knox Professional Corporation Act.
A Professional wanting to open up its own corporation needs to, under the law, create a specific type of entity. A Professional Corporation is made under the code for this purpose.