Are you looking to form a business with a group of fellow licensed professionals? Whether you are a doctor, attorney, architect, public accountant, or a member of a profession requiring some kind of licensure, you may be interested in registering your business as a professional corporation with the Pennsylvania Secretary of the Commonwealth. Let’s take a closer look at professional corporations, what they are, and what they can offer you and your business as chosen business structure.
Professional Corporations
If you want to jointly practice in a professional capacity, a professional corporation may be right for you and your business. Commonly established by a group of licensed professionals who wish to start a joint practice, members of a professional corporation are licensed professionals granted the ability to provide professional services throughout Pennsylvania. It is important to note that some businesses looking to provide professional services within the state may require prior approval from a particular Pennsylvania state agency or board prior to filing for professional corporation status. Prior approval from the Pennsylvania Secretary of the Commonwealth may also be needed.
A professional corporation must be formed pursuant to 15 PA. Cons. Stat. Section 2903 of the Pennsylvania Code. The name of a professional corporation must comply with all relevant laws and regulations regarding corporate names in Pennsylvania. The name of the professional corporation must accurately reflect the purpose of the business as authorized by its Articles of Incorporation. Furthermore, the professional corporation’s name must comply with any applicable Pennsylvania professional licensing board regulations.
Members of a professional corporation must remember that they are not just subject to the rules set forth in the Pennsylvania Code and Pennsylvania’s corporation laws regulating professional corporations. Members of a professional corporation must also remain in compliance with the bodies governing members of their specific profession. For instance, lawyers who have formed a professional corporation must remain in compliance by those rules and regulations set forth by the Pennsylvania State Bar and the Supreme Court of Pennsylvania. Doctors in a professional corporation will remain accountable to any governing bodies granted the authority of oversight relating to the medical profession.
If you are a professional looking to form a joint practice with other licensed professionals, you may want to consider forming a professional corporation. A professional corporation offers the same benefits as a regular corporation. Additionally, there is another advantage to forming a professional corporation in Pennsylvania. Being a member of a professional corporation has powerful implications for your professional liability exposure within the business itself. You see, if malpractice is committed by one member of a professional corporation, the professional corporation structure will help to shield the other members from being held liable. Malpractice on the part of one member will not necessarily extend to the other professional members of the professional corporation.
Pittsburgh Business Law Attorneys
Looking to form a professional corporation? The team at Jones, Gregg, Creehan & Gerace can counsel you on whether this is the best business structure for your endeavor and can also assist in its formation. Contact us today.