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FAQ’s





Professional Corp

  1. Can I incorporate as a professional corporation?
    If you are engaged in a profession that requires that you obtain a license from a State licensing agency in order to engage in that profession and the State in which you are working permits professionals in that profession to provide professional services through a corporate entity then, yes, you can incorporate as a professional corporation.  What professions qualify will depend on the particular State.  As a general rule, most States permit accountants, attorneys, chiropractors, dentists, medical doctors, psychologists, physician assistants and other health care professionals to incorporate and provide professional services through a professional corporation. 


  2. Once I incorporate my business will my personal assets always be protected? 
    Incorporating is a good way to protect your personal assets from claims against your business.  However, in order to get this protection, you have to not only incorporate your business, but you also have to operate your business as a separate legal entity.  For example, you should prepare Shareholder and Board of Director minutes, open a separate bank account in the name of the corporation, use stationary and business cards that make it clear that you are doing business as a corporation, enter into contracts in the name of the corporation, etc.  In addition, many States limit a professional’s ability to insulate himself or herself from professional malpractice by forming a corporation.


  3. I live in Arizona.  Can I incorporate in Nevada?
    Yes.  You do not have to live in a particular State in order to incorporate a business in that State.  However, before you can practice your profession in that State, you will have to comply with that State’s licensing requirements.  In addition, many professional boards or agencies require that, if you are going to practice a profession through a corporation, that corporation has to be formed in the State in which you are going to practice. 


  4. Do professional corporations need bylaws, organizational minutes and stock certificates? 
    Yes.  Just like all other corporations, professional corporations should have bylaws, organizational minutes and stock certificates.