I receive many questions about legal forms of practice, and there is lots of confusion about differences and advantages. For example, the Professional Corporation (PC) is often misunderstood. It is just what it says it is: (1) A corporation, (2) run by professionals. Laws relating to PC's differ by state. Here are some requirements to think about if you're considering setting up as a PC:
1. Some states require a name which reflects the professional nature of the corporation. In other words, a PC named "Wellness Forever" would not be acceptable. The word "Chiropractic" should be part of the name. New York goes even further and requires that the name must not be "false, fraudulent, deceptive or misleading" and that it appropriately describe the profession and the services provided.
2. The name must include "PC" or "Professional Corporation" to clearly distinguish it from other types of corporations.
3. In some states (California, for example), only certain professions are allowed to form PC's. In Texas, MD's, osteopaths, and other "doctors of medicine" (including chiropractors???) are not allowed to incorporate, but must form an LLC (Limited Liability Company) or PLLC (Professional Limited Liability Company).
5. Another restriction on PC's in some states (Iowa, for example), is that all shareholders must be licensed in the profession. So if you were going to form a PC in Iowa, you could not have your non-DC family as shareholders. (The law doesn't mention your Board of Directors, though.)
In short, you must check the laws of the state in which you want to practice. Go to the web site of your state's Secretary of State and find the business section. Or get an attorney who is licensed to practice in that state and who specializes in these matters.
(More information in Planning for Practice Success)
