How to Create a Professional Service Corporation

A professional service corporation is made up of licensed professionals who provide a specific service. When paired with advice from reliable legal counsel, it is a strong business foundation that protects corporation members from the effects of business-related debt. Here's show to create a professional service corporation.

Instructions

Difficulty: Moderate

Things You’ll Need:

• Contact information for the location where the corporation will operate
• Funds to file incorporation paperwork
• Names and contact information of your corporation's board of directors

1. Choose a business name for your professional service corporation that complies with the rules listed at the Web site for your state's secretary of state. Generally, these names include the terms Incorporated/Inc., Company/Co., or Corporation/Corp. Choose a name that is engaging, interesting and easy to remember, but one that also represents the professional services your corporation offers.
2. Search the availability of the name at your state's secretary of state Web site, then check the name against those listed on the U.S. Patent and Trademark (USPTO) Web site (see Resources below). This will avoid the potential for costly lawsuits in the future.
3. Create your corporation's articles of incorporation. You can often access sample articles of incorporation on your state's secretary of state Web site.
4. Incorporate through your state's secretary of state or through an online incorporation company. To incorporate, you will need the following information: company name, address, brief description of main business activity, names and contact information for corporate officers and directors, number of shares of authorized stock and par value and registered agent information. Some states require you to present your paperwork in person, in which case the Web site will tell you how and where to do so.
5. Complete your state tax registration. Contact your state's business licensing entity for information on how and when to file and filing fee information. This is all usually available on a state's official Web site.
6. Apply for your Employer Identification Number (EIN), using form SS-4. You can file this form electronically at the IRS Web site (see Resources below).
7. Develop corporate bylaws to guide day-to-day transactions as well as shareholder information. For additional guidance, hire a lawyer to draft your bylaws or look for examples on your state's Web site.
8. Hold the first meeting of the board of directors to appoint officers, authorize stock shares and determine the fiscal year of the professional service corporation.

Tips & Warnings

• Although you don't need an attorney to complete the incorporation process, it's a good idea to have a corporate lawyer look over your proposed articles of incorporation and bylaws to ensure you are abiding by your state's laws.
• Many online services allow you to file your incorporation paperwork through them, and their legal staff will answer questions. Incorporating through such a service can take as little as 24 hours.
• Plan which member will handle paperwork and tax filings and fund the incorporation fees on behalf of the corporation.