If you’re a professional starting your own business, you’ve likely seen mention of a Professional Company without much explanation or detail.
A Professional Company is a business entity, like an LLC or corporation, but for licensed professionals. Professional Companies can be one of two types: a P.C., professional corporation, or a PLLC, professional LLC.
Occupations that generally require special licenses or oversight usually need a Professional Company. Though most commonly found in the health services field, other licensed occupations often need a PC or PLLC as well.
Check below for a full list of professional companies.
When forming a Professional Company, you will need to file with the State’s Department of Education. The New York State Office of Professions has some great resources on the law surrounding licensed professionals. It will be the Office of Professions, under the State Department of Education that will oversee these businesses.
New York’s Department of Education will issue a Certificate of Authority, which allows the business to practice in the licensed field. Those applying must provide proof of licensure. Once approved, all shareholders, officers, and directors will be authorized to practice.
Otherwise, a Professional Company can be run just like a corporation or LLC would, at least from a business standpoint. Like corporations and LLCs, there are advantages to both, so the choice should be based on the type of company structure and tax structure you want.
The extra, lengthy steps to form these entities is why most online services, law firms, and business consultants don’t help form them. Fisher Stone has helped form hundreds of Professional Companies. If you’re starting a business, our firm can help you learn your options.
Each state has different regulations about what is required of businesses. Your business may need to be a Professional Entity, so please contact our firm at 212-256-1877 or at email@example.com. You can also schedule a free consultation with a lawyer. Our attorneys will help you avoid the costly, and possibly devastating, mistake of running your company as a regular business.