The incorporation documents, the Articles of Incorporation for a professional corporation (PC) and Articles of Organization for a PLLC, are similar to those of standard corporations and limited liability companies (LLCs). But with PCs and PLLCs, the proper state licensing body must often approve the incorporation documents before these documents can be filed with the Secretary of State.
Also, the incorporation documents typically must have the signature and license number of a licensed professional as the incorporator. That’s why the filing time for PCs and PLLCs is typically longer than the filing time for standard corporations and LLCs. BizFilings obtains the necessary approvals for our customers when we incorporate their businesses as PCs and PLLCs.
To form a PC or PLLC with BizFilings, the ordering process is slightly different. Based on state requirements, we ensure that your particular business needs to form a PC or PLLC in your state of incorporation before we apply our $125 PC/PLLC formation fee to your order. Placing a normal incorporation service order with us is the first step in this process, then our Incorporation Specialists confirm this requirement and contact you regarding next steps. See our Ordering Details tab for PCs and PLLCs for more information on ordering.
Generally, the taxation of PCs and PLLCs is the same as standard corporations and limited liability companies (LLCs). PCs are taxed like C corporations (unless they make the S corporation election). But many PCs do not have the advantage of graduated corporate federal income tax rates. Those that are "qualified personal service corporations" must pay the highest federal income tax rate of 35 percent on all taxable income instead of applying the lower marginal rates to some income. Qualified personal service corporations typically provide services in the fields of health, law, engineering, architecture, accounting, actuarial science or consulting. Seek the advice of an attorney or accountant to determine if your company meets this classification in your state of incorporation.
Most states will recognize a PC's federal election of S corporation status, which allows for pass-through tax treatment—the corporation’s income is not taxed at the business level, but the corporation does complete a tax return. The income or loss as shown on this return is "passed through" the corporation and reported on the owners’ personal tax returns. Any tax due is then paid by the owners at the individual level. To see if your state of incorporation recognizes the federal S corporation election, view the Ongoing Corporation Requirements page of our state guides.
Naming a business is always an important decision. Many professionals choose to name their businesses or firms using their name and/or that of their partners. Others choose to include the name of their specialty. The name of your PC or PLLC must not be "deceptively similar" to any existing corporation or limited liability company (LLC) and be "distinguishable on the record" of your state. It is possible that the name you select will not be available. That’s why we ask for a second choice on our incorporation service order form.
Additionally, the name you choose usually must show your business is a PC or PLLC. Most states require that the corporate or LLC name be followed by the ending "Professional Corporation" or the abbreviation "P.C.," "PC," or, in some states, "P.A." (professional association) or "S.C." (service corporation). For PLLCs, the appropriate ending is "Professional Limited Liability Company" or "PLLC."
Depending on your state of incorporation, there may be restrictions that require the profession to be listed in the company name (for example, Johnson Chiropractic, PC). Additionally, there may be specific "restricted words" that are not available for use in names. Check the Corporation Formation Requirements or LLC Formation Requirements page of our state guides for your intended state of incorporation for more details.
A registered agent is required when you incorporate a business. A company must also have a registered agent when it registers to do business in a state or states other than the state of incorporation (a process called foreign qualification).A registered agent is a person or company who receives important legal and tax documents on behalf of a business. The registered agent must have a physical address in the state of incorporation (or qualification) and be available during normal business hours.
BizFilings includes Registered Agent Service in our incorporation service packages. As your registered agent, we go beyond satisfying your state's legal requirement, we provide a number of benefits at no additional charge to you, including our monthly Registered Agent Watch email, access to BizComply─our online compliance management tool, electronic Service of Process (notice of litigation) delivery, 24/7 access to your account and more.
For professionals, there are a number of benefits to having BizFilings as your registered agent, including:
To order a PC or PLLC formation with BizFilings, you have two options:
To order online:
Upon reviewing the business purpose statement within your order, the state may require you to form a PC or PLLC. If so, we will contact you and then apply the $125 PC/PLLC formation fee to your incorporation service order.
To order by phone:
Contact one of our Incorporation Specialists, Monday - Friday, 8:00 AM - 7:00 PM central time at 800-981-7183 to place your order.
We have resources to help you understand your options.