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A California professional corporation (PC) is the required corporate entity for most licensed professionals who want to practice in corporate form in California. It is formed under the California General Corporation Law and additionally governed by the Moscone-Knox Professional Corporation Act.
If you are currently practicing as a sole proprietor or in a general partnership and want to incorporate your practice, a California professional corporation is the correct path forward.
Our form will walk you through all the important decisions and information.
We prepare the paperwork and file it with the Secretary of State (SOS). You will need to register with your profession's governing body.
We provide the documents, resources, and next steps for your business bank account, free tax consultation, and more!
Can a California licensed professional form a PLLC instead of a professional corporation?
No. California expressly prohibits professional limited liability companies (PLLCs) under Cal. Corp. Code § 17701.04(e), which states that neither a domestic nor a foreign LLC may render professional services in California. Licensed professionals who want to practice in an entity form must generally use a professional corporation. Attorneys, public accountants, architects, and engineers may alternatively use a registered limited liability partnership (RLLP).
Can a California professional corporation have only one shareholder?
Yes. A California professional corporation with one shareholder needs only one director, who must be that shareholder and who also serves as president and treasurer of the corporation (Cal. Corp. Code § 13403).
How much does it cost to form a professional corporation in California?
The California Secretary of State's filing fee for Form ARTS-PC is $100. An initial Statement of Information (Form SI-550) is due within 90 days of incorporation and costs $25. First-year franchise tax is based on net income only, with no $800 minimum; the $800 annual minimum begins in year two. Ongoing compliance costs include the $25 annual Statement of Information fee and any licensing board renewal fees specific to your profession.
What happens if a shareholder of a California professional corporation loses their license?
A shareholder who becomes a "disqualified person" — someone no longer authorized to render the corporation's professional services — triggers a mandatory share-transfer obligation under Cal. Corp. Code § 13408. If all licensed shareholders become disqualified at the same time, or if the sole shareholder is disqualified, it is grounds for suspension or revocation of the corporation's certificate of registration.
Do I need a registered agent for my California professional corporation?
Yes. Every California corporation, including a professional corporation, must designate an agent for service of process with a California street address under Cal. Corp. Code § 202(b). The agent must be available during normal business hours to receive legal documents on the corporation's behalf. LegalNature's registered agent service fulfills this requirement and ensures your corporation maintains good standing with the Secretary of State.
