One of the entities licensed professionals may choose to use in the practice their profession is the professional service corporation. 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.
New York Professional Service Corporation (P.C.) Incorporation Flat-Fee Package
Package includes the following:
- Preparation of the Certificate of Incorporation.
- Filing the Certificate of Incorporation with the New York Department of Education.
- Obtaining the Certificate of Authority from the New York Department of Education.
- Filing the Certificate of Incorporation and Certificate of Authority from the New York Department of State.
- Filing a certified copy of the Certificate of Incorporation with the New York Department of Education.
- Preparation of Statement of Incorporator.
- Application for Employer Identification Number (EIN).
- Assistance with IRS Form 2553 and NY Form CT-6 to elect “S-Corporation” status, if applicable
One other consideration in entity choice is that, while a standard New York business corporation can conduct any business stated in its Certificate of Incorporation, a professional service corporation is limited to conducting the business of the profession. This means that a doctor cannot use his company 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.
If you’re considering what type of professional service company to use, or if you have decided and want help setting it up, let us know. We’d be glad to help!