3 Steps to Starting Your Pharmacist Professional Corporation

Form Your Pharmacy Professional Corporation the Right Way

If you’re a pharmacist in California, you’re required by law to form a Professional Pharmacy Corporation (PPC) to operate your pharmacy practice or provide professional services.

Under the Moscone-Knox Professional Corporation Act (California Corporations Code §§13400–13410), pharmacists cannot form an LLC or a traditional general corporation to conduct pharmacy services.

If your corporation is filed incorrectly, the Secretary of State can reject it — exposing you to liability risks, fines, and penalties from the California Board of Pharmacy and other regulatory bodies.

At All-in-Juan Business Consultancy Services, we’ve helped thousands of licensed professionals, including pharmacists, establish their Professional Corporations the right way — legally compliant, tax-efficient, and ready to operate.

📩 Email: [email protected]

A Professional Pharmacy Corporation is a legal business structure designed specifically for licensed pharmacists who wish to provide professional pharmacy services in California.

It must be registered with both the California Secretary of State and the California State Board of Pharmacy, and must hold an active pharmacy permit before operating.

When correctly structured and taxed as an S-Corporation, it offers limited liability protection, tax benefits, and professional compliance required by state law.

Why Choose S-Corporation Tax Status

By default, a Pharmacy Corporation is taxed as a C-Corporation, which creates double taxation — both corporate and individual income tax.

Filing IRS Form 2553 to elect S-Corporation status allows you to:
✅ Avoid double taxation
✅ Pass income and losses directly to shareholders’ personal tax returns
✅ Reduce self-employment taxes
✅ Simplify your business’s tax obligations

This structure keeps your pharmacy financially efficient and compliant with both state and federal law.

3 Steps to Starting a Pharmacy Professional Corporation in California

Step 1: File Articles of Incorporation

File your Articles of Incorporation for a Professional Corporation with the California Secretary of State, clearly stating that your entity is formed under the Moscone-Knox Professional Corporation Act.

Step 2: Complete Licensing and Regulatory Requirements

After your Articles are filed and approved, 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 All-in-Juan Handle It for You

At All-in-Juan Business Consultancy Services, we handle every step — ensuring your Professional Pharmacy Corporation is properly filed, licensed, and compliant with the Board of Pharmacy and California Secretary of State.

📩 Email: [email protected]

Benefits of a Pharmacy Professional Corporation

Forming a Professional Pharmacy Corporation offers major advantages:
✅ Asset Protection – Limits your personal liability from business debts and lawsuits.
✅ Tax Efficiency – Reduce taxes with S-Corporation status.
✅ Regulatory Compliance – Aligns with the Moscone-Knox Act and the California Board of Pharmacy.
✅ Business Credibility – Enhances your professional reputation with patients, vendors, and banks.
✅ Growth Readiness – Enables expansion through business credit and structured ownership.

Who Regulates Professional Pharmacy Corporations

In California, the California State Board of Pharmacy oversees all pharmacy corporations.
To legally operate, your corporation must hold both:

• A Certificate of Registration from the Board of Pharmacy

• A valid Pharmacy Permit

This ensures all professional pharmacy services are delivered under licensed and compliant business entities.

Who Can Be a Shareholder in a Pharmacy Professional Corporation

Only licensed pharmacists may be shareholders, directors, or officers in a Pharmacy Professional Corporation.

Ownership rules include:

• Shares may only be issued to licensed pharmacists.

• Any shares issued to non-licensed individuals are automatically void under California law.

• Shares can only be transferred to another licensed pharmacist, an existing shareholder, or the corporation itself.

• If a shareholder becomes disqualified or loses their license, they must transfer their shares within 90 days of disqualification.

Name Requirements for a Pharmacy Professional Corporation

Your corporation’s name must clearly indicate that it is a pharmacy business and include:

• “Pharmacy,” “Pharmacist,” or “Pharmaceutical,” and

• A corporate ending such as:
  “Professional Corporation,” “Prof. Corp.,” “A.P.C.,” “P.C.,” “Inc.,” “Corporation,” “Corp.,” or “A California Professional Corporation.”

Example:
✅ BrightLife Pharmacy, A Professional Corporation
✅ Dr. Ana Cruz, Pharm.D., Inc.

❌ “LLC” or “Limited Liability Company” are not allowed designations under California law for pharmacy practices.

Using a Fictitious Business Name (DBA)

A Pharmacy Professional Corporation may use a fictitious business name (DBA), provided it complies with all filing requirements:

• File a Fictitious Business Name Statement within 40 days of opening your practice.

• Register the DBA in each county where the pharmacy operates.

• Ensure the name is not misleading, deceptive, or similar to an existing name.

Example of a compliant DBA:
💊 HealthyRx Pharmacy (filed under BrightLife Pharmacy, A Professional Corporation)

Can a Pharmacy Operate as an LLC in California?

No.
Under the California Corporations Code and the Moscone-Knox Act, pharmacists cannot form LLCs to provide professional pharmacy services.

To legally operate a pharmacy in California, you must form a Professional Corporation registered with both the Secretary of State and the California State Board of Pharmacy.

Start Your Pharmacy Corporation the Right Way

At All-in-Juan Business Consultancy Services, we take the stress out of forming your Professional Pharmacy Corporation — ensuring accuracy, compliance, and fast turnaround.

We’ve already helped thousands of licensed professionals across California start their Professional Corporations correctly under the Moscone-Knox Act — and we’re ready to help you next.

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

All-in-Juan Business Consultancy Services — Helping California Pharmacists Start Their Professional Corporations the Right Way.