8980 / What are the requirements for establishing a professional corporation (PC)?

Professional corporations are governed by state law, so the requirements will vary from state to state. In many states, each member of the PC must be licensed in the same profession (i.e., law or medicine) and many states require the PC to submit proof of licensing and obtain state approval upon formation. Some states also require that the PC obtain approval from their state licensing body at the time of formation.

The letters “PC” must generally follow the name of the professional corporation. Depending upon the state and the industry, requirements may also apply to the actual name of the PC (for example, while a group of lawyers will often be required to use some form of “professional corporation” after the corporate name, a group of doctors may be required to use “medical corporation”).

Unlike traditional corporations, some (or all) of the officers and directors of a professional corporation often must be licensed to perform the activity that the PC is engaged in. States may specify the number of directors that must be on the PC’s board (for example, in California, three directors are required unless the PC has fewer than three shareholders).