One of the entities licensed professionals may choose to use in the practice their profession is the professional service corporation, also known as a PC The professional service corporation carries most of the benefits of a corporation.
As a “legal person” separate from its owners, the acts and liabilities of the professional service corporation are considered separate from those of its stockholders. Stockholders can also be considered employees of the company, which can be financially beneficial for both the company and its owners.
The professional services of a licensed professional, however, are considered acts of those professionals; thus, the corporate form cannot protect them from the services that they render. But, the corporate form will prevent from the acts of other professionals in the company. So in a corporation a doctor’s personal assets may be on the line when he treats a patient, but his not when another doctor treats a patient. In a general partnership, every doctor in the partnership can be held personally responsible.
One other consideration in entity choice is that a professional service corporation is limited to conducting the business of the profession. This means that a doctor cannot use a professional service corporation to run both a doctor’s office and dance studio. If you want to form a multi-purpose company, then the PLLC may be more appropriate.
New York Professional Service Corporation (PC) Incorporation Flat-Fee Package
Package includes the following:
- Ensure compliance with professional service naming requirements
- Prepare of professional service corporation certificate of incorporation.
- Prepare of professional entity affidavit.
- Coordinate with New York education department to obtain certificate of authority to form a professional service corporation.
- File certificate of incorporation and certificate of authority with the division of corporations of the New York department of state.
- File certified copy of certificate of incorporation with the New York education department.
- Prepare basic bylaws for professional service corporation.
- Prepare statement of the incorporator.
- Prepare initial director resolutions.
- Prepare initial shareholder resolutions.
- Apply for employment identification number (EIN), if requested (current social security number or taxpayer identification number required).
Flat-Rate Legal Fee: $1,688
*Flat-rate fee applies only to basic professional service corporations. If a more complex corporate structure is required, such as provisions for multiple-classes of shares, anti-takeover measures or multi-tiered governance, fees may be higher. Shareholders’ agreements, if required, are prepared at our hourly rate. Flat fee does not include state fees, which as of January 2018, total $280.
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