Are You a Professional Looking to Start Your Corporation in California?

If you’re a licensed professional in California — such as a doctor, nurse practitioner, lawyer, therapist, accountant, or dentist — you cannot form a traditional LLC or standard corporation to operate your business.

Instead, under the Moscone-Knox Professional Corporation Act (California Corporations Code §§ 13400–13410), you are required to form a Professional Corporation (PC).

At All-in-Juan Business Consultancy Services, we’ve already helped thousands of professionals across California successfully establish their Professional Corporations quickly and correctly — ensuring full compliance with the Moscone-Knox Act and California state regulations.

What Is a California Professional Corporation?

A Professional Corporation (PC) is a specific legal structure for licensed professionals who want to operate their practices under a corporation while maintaining compliance with their professional licensing board.

This entity offers:

• Legal protection for personal and business assets

• Tax optimization through S-Corporation election

• Professional credibility under California law

Unlike an LLC, a Professional Corporation is required for most California-licensed professionals to legally provide their services.

Understanding the Moscone-Knox Professional Corporation Act

The Moscone-Knox Act sets the foundation for how licensed professionals form and manage Professional Corporations in California.

Key provisions include:

• A Professional Corporation may only offer services in one licensed profession.

• Shareholders, directors, and officers must all be licensed in that same profession.

• The Articles of Incorporation must explicitly state that the corporation is organized under the Moscone-Knox Professional Corporation Act.

• A PC cannot legally operate until it has obtained a current certificate of registration from the appropriate state licensing board.

These rules protect consumers and maintain professional integrity — ensuring only qualified individuals offer licensed services through their corporations.

Professions That Must Form a Professional Corporation

Under the Moscone-Knox Act, the following licensed professionals in California are required to form a Professional Corporation (PC) instead of an LLC:

• Nurses & Nurse Practitioners

• Doctors/Physicians

• Dentists

• Registered Dental Hygienists in Alternative Practice (RDHAP)

• Physician Assistants

• Psychology

• Licensed Marriage and Family Therapists (LMFTs)

• Licensed Clinical Social Worker (LCSW)

• Veterinarians

• Pharmacists

• Audiologists

• Speech Language Pathologists (SLPs)

• Chiropractors

• Optometrists

• Attorneys

• Accountants

• Podiatrists

• Psychiatrists

• Acupuncturists

If your profession requires a California-issued license, you must form a Professional Corporation to remain compliant.

Professional Naming Requirements

Each profession has specific naming requirements that must comply with both the California Secretary of State and the corresponding licencing board.

Your corporate name must:

• Clearly identify the type of professional service provided

• Include a corporate designation such as “Professional Corporation,” “P.C.,” or “A Professional Corporation”

• Be distinguishable from any other registered business name in California

• Follow profession-specific rules — for example, a psychologist’s PC name may differ in format from a lawyer’s or doctor’s PC name

Before filing, it’s important to verify your name’s availability and compliance to prevent rejection or delays.

Why Choose S-Corporation Status

By default, a Professional Corporation is taxed as a C-Corporation, which may lead to double taxation.

However, by filing IRS Form 2553, you can elect to be taxed as an S-Corporation, which allows your business income to pass directly to your personal tax return — avoiding double taxation and reducing self-employment taxes.

Electing S-Corp status also helps you:

• Save on self-employment tax (up to 15.3%)

• Pay yourself a reasonable salary and take dividends tax-efficiently

• Streamline your business tax filings

At All-in-Juan Business Consultancy Services, we’ll guide you through this process to ensure your election is filed correctly and on time.

Step-by-Step: How to Form a California Professional Corporation

Step 1: Define Your Corporation

Determine your professional entity type, name, address, and the nature of your services.
Your Articles of Incorporation must specify that the business is a Professional Corporation under the Moscone-Knox Act.

Step 2: Appoint Directors

Appoint at least three directors, unless there are fewer than three shareholders.
Each director must hold a valid professional license. This ensures compliance with California Corporations Code § 13403.

Step 3: Draft Corporate Bylaws

Corporate bylaws set the rules for how your corporation operates — defining roles, meetings, voting rights, and decision-making processes.
These bylaws must comply with the Moscone-Knox Act and your licensing board’s standards.

Step 4: Obtain an EIN

Apply for an Employer Identification Number (EIN) from the IRS.
This is required for tax filing, hiring employees, and opening a business bank account.

Step 5: File a Statement of Information

Within 90 days of incorporation, you must file a Statement of Information with the California Secretary of State.
This includes details about your officers, directors, and service agent. It must be renewed annually or when major changes occur.

Step 6: File Form 2553 (S-Corp Election)

Elect S-Corporation status by filing IRS Form 2553 within 75 days of incorporation.
This allows pass-through taxation and helps maximize your tax savings.

Step 7: Pay Franchise Taxes

All Professional Corporations must pay an annual minimum tax to the California Franchise Tax Board (FTB).

Staying compliant with these payments ensures your corporation remains in good standing with the state.

Step 8: Register With the EDD

If you plan to hire employees or pay yourself a salary, register with the California Employment Development Department (EDD) for payroll tax purposes.

Step 9: Obtain Local Business Licenses and Permits

Your city or county may require additional business licenses or permits depending on your location and services.

We help ensure your PC meets all local compliance requirements.

Let Us Handle Everything For You

Starting your Professional Corporation can feel overwhelming — but it doesn’t have to be.

With All-in-Juan Business Consultancy Services, we handle the entire formation process for you — from preparing your Articles of Incorporation to ensuring your S-Corp election is approved and your business remains compliant with California’s professional standards.

We’ve already helped thousands of professionals like you build the right business foundation for success — legally, efficiently, and stress-free.

📞 Contact Number: +1 424 407-3686
📩 Email: [email protected]
🌐 Website: www.all-in-juanbusinessconsultancyservices.com

All-in-Juan Business Consultancy Services — helping California professionals form their corporations the right way, under the Moscone-Knox Act.