As an acupuncturist in California, you now have the option to work for a clinic or start your own business. Of course, the latter sounds better. Everyone wants to be the captain of their own ship! But, where do you start? Begin by learning what you need to form an acupuncture professional corporation.
There are many forms of professional corporations and an acupuncture professional corporation is just one of them. This specific corporation is built to render professional acupuncture services. As with all corporations, an acupuncture professional corporation must be registered with the California Secretary of State.
The California Corporations Code requires all registered professional corporations to abide by the rules and regulations of the government agency that manages their profession. As for acupuncture professional corporations in California, it is the Department of Consumer Affairs – Acupuncture Board that regulates them.
All acupuncture professional corporations that operate in California must abide by the following State Laws:
California Corporations Code – §13401(b)
Business and Professions Code – Acupuncture Corporations are found in the California Business and Professions Code starting with Section 4975.
California Code of Regulations – Chapter 13.7. Acupuncture Committee
Get access to all the laws and regulations related to a professional acupuncture corporation! Click here!
Ideally, professional corporations must be formed with the assistance of an expert attorney. This is to make sure that the process of incorporation is done correctly. Any mistake in the formation process, like a missing documentation, can cause adverse legal issues in the company.
Forming an acupuncture professional corporation entails a ton of corporate and legal work. Below are a few of the considerations:
The following licensed persons may be shareholders, officers, directors, or professional employees of the Acupuncture corporation so long as the sum of all shares owned by those licensed persons does not exceed 49 percent of the total number of shares of the Acupuncture corporation, and so long as the number of those licensed persons owning shares in the Acupuncture corporation does not exceed the number of persons licensed by the governmental agency regulating the designated professional corporation. This rule does not limit employment by an Acupuncture corporation to only those licensed professionals listed.
(1) Licensed physicians and surgeons.
(2) Licensed doctors of podiatric medicine.
(3) Licensed psychologists.
(4) Registered nurses.
(5) Licensed optometrists.
(6) Licensed marriage and family therapists.
(7) Licensed clinical social workers.
(8) Licensed physician assistants.
(9) Licensed chiropractors.
(10) Naturopathic doctors.
(11) Licensed professional clinical counselors.
(12) Licensed midwives.
Yes. An acupuncturist may choose to be a shareholder in more than one acupuncture professional corporation in California.
When choosing a business name for a corporation, keep in mind that the name must comply with the California Business and Professions Code 4978. The name of an acupuncture corporation and any name or names under which it may render professional services must contain the words “acupuncture” or “acupuncturist” and wordings or abbreviations that denote its corporate existence.
Yes! The Acupuncture Board does not prohibit the use of a fictitious business name or a “Doing Business As.”
No. Any professional corporation or foreign professional corporation rendering professional services by persons duly licensed by the Board of Registered Acupuncture are not required to obtain a certificate of registration in order to render their professional services.
These offices are dependent on the number of stockholders in the corporation. In general, each director, shareholder, and officer of an acupuncture Corporation, except an assistant secretary and an assistant treasurer, must be a licensed acupuncturist.
There are exceptions to the rules. An acupuncture corporation that only has one shareholder may have one director. That single shareholder can serve as the president as well as the treasurer of the corporation. The other officers of the corporation in such a situation need not be licensed persons. In cases where the acupuncture corporation has only two shareholders, these stockholders can also serve as the directors of the company. The two shareholders, between themselves, should fill the offices of the president, vice president, secretary, and treasurer.
Recently, we received an inquiry from a California-based acupuncturist. She wanted to start an acupuncture professional corporation with her colleagues, but she’s not sure if she should hire an incorporation attorney to help them. She asked the below question:
Yes, it’s true that some people choose to incorporate their businesses themselves. However, you’ll find that when forming a professional corporation, you’ll have a ton of questions – both corporate and legal concerns. It’s understandable why you’ll have questions because you want to make sure that you start your small clinic right. The best decision to make is to work with a corporate attorney that specializes in forming acupuncture professional corporations in California. By working with an experienced lawyer, you can be sure that all your questions will be answered.
+Read the answerA dependable corporate lawyer will help you understand how a professional corporation is the correct entity for your acupuncture service, assist you through the process of forming the corporation, and be available for you when you need legal and corporate advice.
