3 Steps to Starting Your Nursing Professional Corporation

Form Your Nursing Professional Corporation in California

If you’re a Registered Nurse (RN) or Nurse Practitioner in California, you’re not allowed to form a Limited Liability Company (LLC) or a standard corporation for your nursing practice.

Instead, California law requires that you form a Nursing Professional Corporation (NPC) under the Moscone-Knox Professional Corporation Act (California Corporations Code §§ 13400–13410).

At All-in-Juan Business Consultancy Services, we’ve helped thousands of healthcare professionals—including nurses, physicians, and therapists—form their Professional Corporations quickly, correctly, and fully compliant with California law.

📩 Contact us today: [email protected]

What Is a Nursing Professional Corporation?

A Nursing Professional Corporation (NPC) is a legal business entity registered with the California Secretary of State and licensed through the California Board of Registered Nursing (BRN).

This structure allows you to:

• Operate your nursing practice legally in California

• Protect your personal assets from business liabilities

• Enjoy tax savings when electing S-Corporation status

• Establish professional credibility and qualify for business financing

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.

3 Simple Steps to Form Your Nursing Professional Corporation

Step 1: File Your Articles of Incorporation

Submit your Articles of Incorporation for a Professional Corporation to the California Secretary of State.
Be sure to include a statement that your corporation is organized under the Moscone-Knox Professional Corporation Act.

Step 2: Complete Required Registrations

After formation, you must:

• Apply for your EIN from the IRS

• Appoint Directors

• Draft your corporate bylaws

• File your Statement of Information with the Secretary of State

• File Form 2553 to elect S-Corporation tax status

• Pay annual taxes to the California Franchise Tax Board (FTB)

• Register with the Employment Development Department (EDD) if you pay salaries

• Apply for local business licenses or permits

Step 3: Let the Experts Handle It for You

At All-in-Juan Business Consultancy Services, we handle the entire process for you—ensuring everything is filed accurately, on time, and in full compliance with state and BRN requirements.

📩 Email us: [email protected]

Benefits of a Nursing Professional Corporation

Forming your Nursing Professional Corporation offers multiple advantages:

✅ Asset Protection – Limits your personal liability against business debts and lawsuits
✅ Tax Efficiency – Save on self-employment tax through S-Corporation election
✅ Professional Legitimacy – Operate under an approved legal structure
✅ Business Credit – Build credibility for loans, insurance, and vendor accounts

Naming Requirements for Nursing Professional Corporations

Your corporate name must comply with California’s professional naming rules:

• Must include “nursing” or “registered nursing.”

• Must have a valid corporate ending, such as:
  “A Professional Corporation,” “Professional Corporation,” “APC,” “A.P.C.,” “PC,” “P.C.,” “Prof. Corp.,” “Inc.,” or “Incorporated.”

• “LLC” or any variation is not permitted for nursing corporations.

• The name cannot be false, misleading, or deceptive.

Each name must be approved by both the Secretary of State and the California Board of Registered Nursing.

Who Can Be a Shareholder in a Nursing Professional Corporation?

California law requires that:

• At least 51% of the corporation’s shares must be owned by Registered Nurses.

• Up to 49% may be owned by other licensed healthcare professionals, including:

  • Physicians and Surgeons

  • Psychologists

  • Optometrists

  • Marriage and Family Therapists

  • Clinical Social Workers

  • Physician Assistants

  • Chiropractors

  • Acupuncturists

  • Naturopathic Doctors

  • Midwives

  • Professional Clinical Counselors

Shares issued to unlicensed individuals are void, and disqualified shareholders must transfer their shares within 90 days.

Can a Nursing Corporation Be an LLC in California?

No.
California law prohibits nurses and nurse practitioners from forming an LLC or general corporation to practice nursing.
Only a Professional Corporation registered under the Moscone-Knox Act can provide nursing services in the state.

Can a Nursing Professional Corporation Use a DBA?

Yes.
A Nursing Professional Corporation may operate under a fictitious business name (DBA) if it:

• Files a Fictitious Business Name Statement within 40 days of starting the business

• Registers the name in every county where it operates

• Uses a name that is not misleading or deceptive

Start Your Nursing Professional Corporation the Right Way

Starting your Nursing Professional Corporation doesn’t have to be complicated.
Our team at All-in-Juan Business Consultancy Services will guide you through every step — from filing to compliance — so you can focus on what matters most: providing exceptional patient care.

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