Pursuing Entrepreneurship as an Acupuncturist – Forming an Acupuncture Professional Corporation in California

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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.

Acupuncture Professional Corporation – What is it?

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.

Are there Specific Government Agencies that Regulate Acupuncture Corporations?

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.

What are the State Laws that Regulate the Formation of an Acupuncture Corporation in California?

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!

Considerations When Forming an Acupuncture Professional Corporation in California

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:

Who Can Purchase Stocks in an Acupuncture Corporation?

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.

Can an Acupuncturist Own Stocks in More than One Acupuncture Professional Corporation?

Yes. An acupuncturist may choose to be a shareholder in more than one acupuncture professional corporation in California.

What Namestyle Formalities Must be Followed When Starting an Acupuncture Profession Corporation?

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.

Are Acupuncture Professional Corporations Allowed to Use A Fictitious Business Name?

Yes! The Acupuncture Board does not prohibit the use of a fictitious business name or a “Doing Business As.”

Is there a Need for a Certificate of Registration as an Acupuncture Corporation?

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.

Who Can Serve as an Officer of Director of an Acupuncture Professional Corporation in California?

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.

Question Straight from an Acupuncturist

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:

Client Question :
“Hi! I am an Acupuncturist based in San Francisco. Recently, my colleagues and I have decided to pursue our own business. We’ve discussed among ourselves and agreed to form a corporation. Is it necessary to hire an attorney or is possible to incorporate a business by ourselves?”

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.

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Have No Doubts that Your Company is Legally Protected: Work With a Local Professional Acupuncture Corporation Specialist

A 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.