In California, there is a general prohibition on the corporate practice of medicine, which includes a prohibition on operating a medical practice as a Limited Liability Partnership (“LLP”) as well. However, there is an exception for professional medical corporations. Professional medical corporations are growing increasingly popular as a business entity, and have become a go-to choice for both large and small practices. For those individual practitioners who want to start their own business for their practice, but do not want to expose themselves to the liability of operating their business as an unincorporated entity, professional corporations can offer a good source of liability protection. Professional corporations also work well for those who desire to operate their business through a more firmly structured and regulated entity as well.
Corporations are probably the most well-known of the business entities, as they provide limited liability to shareholders, easy access to raising capital through investors, are the only business entity that can go public through an IPO, and have a rigid management structure allowing shareholders to delegate the management of the corporation to directors and officers.
Looking to start a new corporation and heard there are different types but are not sure what they are? This article summarily explains some key differences in structure, governance, and requirements of: (1) C-Corporations, (2) S-Corporations, (3) Statutory Close Corporations, and (4) Professional Corporations.
If you are looking to start a business, chances are that you have heard of one of the following business entities. This post will cover general details about sole proprietorships, partnerships, limited liability partnerships, limited liability companies, and corporations.