What is considered a professional corporation in California?

What is considered a professional corporation in California?

Members of certain professions such as lawyers, doctors, accountants, and engineers may form a California professional corporation (also known as a “PC”). Typically, these types of entities provide services only through licensed professionals.

How much does it cost to incorporate a company in California?

How much does it cost to incorporate in California? Incorporating in California will cost a minimum of $125. Broken down, the standard filing fee for incorporating in California is $100. For an extra $15, you can hand deliver your Articles of Incorporation to the California Secretary of State’s office in Sacramento.

Who can own a California professional corporation?

In a California professional medical corporation, at least 51% of the shares must be owned by a licensed physician or surgeon, and only up to 49% of the outstanding and issued shares may be held by a (1) doctor of podiatric medicine; (2) psychologist; (3) registered nurse; (4) optometrist; (5) marriage, family, and …

Is a California professional corporation an S Corp?

If you do not elect to have your California professional corporation taxed as an S corporation, the default is for it to be taxed as a C corporation. By electing to be taxed as an S corporation, your professional corporation would instead be a pass-through tax entity, like an LLC or a partnership.

Can a California professional corporation be an S Corp?

You should consult with your CPA or tax professional to make sure being taxed as an S corporation is the best fit for your professional corporation, but for most California professional corporations electing to being taxed as an S corporation rather than a C corporation is likely to provide the most tax savings.

How do I incorporate myself in California?

How to Form a Corporation in California

1. Choose a Corporate Name.
2. File Articles of Incorporation.
3. Appoint a Registered Agent.
4. Prepare Corporate Bylaws.
5. Appoint Directors and Hold First Board Meeting.
6. Issue Stock.
7. File a Statement of Information.
8. Comply with Tax Requirements.

How do I avoid the 800 franchise tax in California?

To avoid back-to-back California Franchise Tax payments, you can hold off on forming your business until January or include a “future file date” on your articles of organization or incorporation when you file.