Micro-Corporation Names: Your Professional DNA
Mar 01, 2024
Every State Is Different
In the complex intersection of healthcare and business, physicians frequently opt to form professional corporations to navigate the worlds of healing and entrepreneurship. However, the terminology for these entities varies widely across the United States. In this blog post, I’ll explore why professional corporations for doctors are referred to by different names in all 50 states.
Less than a year ago, I was working with an attorney to help my son establish his professional corporation in Texas, where he is completing his family medicine residency at JPS in Fort Worth. He is using his micro-corporation during residency for moonlighting. Through his process, we learned that a "PC" is referred to as a "Professional Association (PA)" in Texas. This surprising discovery made wonder what a professional corporation was called in every state? The answer is a few paragraphs below.
But beyond what a professional micro-corporation is called in each state, as I meet with doctors doing micro-business consultations weekly, the question that often arises is what type of corporation they should form.
My response is that they should not designate themselves as a sole proprietor business as this graph demonstrates.
Secondly, while LLCs are great for real estate and other businesses, they are typically not the best choice for professional services. A C-corp is usually larger and more complex than what you need – it's like buying a Ferrari when a Lexus would have been sufficient.
Your best option will most commonly be a professional micro-corporation.
On a side note: Once you create your professional micro-corporation in your state, you will have the option to choose its tax classification as an "S corp" or a "C corp". For most of you, an S-corp is a perfect fit (choosing the Lexus), but depending on the size of your professional earnings and the robustness of your fringe benefit plans, a C-corp might be best (Ferrari). The correct answer requires a legal and tax professional to examine your life, household needs, and goals to help you make the right choice. This is why it's important to work with someone who understands physicians like you. As a fellow physician who fully understands your life, my micro-business consultation will guide you through the process and connect you with a private referral to a legal and tax professional who will help set up your personalized professional corporation. I invite you to begin today and allow me to assist you with starting your own personalized professional corporation that is built exclusively for you.
In summary, for most of you, the best micro-corporation structure will be a professional corporation, or PC for short. As you navigate the unfamiliar waters of small business ownership, it's important to check with your state to confirm the exact terminology (refer to the list below).
Your Clone
It's important to remember that a professional micro-corporation is a legal and tax entity that essentially mirrors and mimics your personal life, creating a unique clone of you. It's like having multiple versions of yourself, each with your DNA. With his in mind, your micro-business entity should be designed to reflect your individuality.
Just as getting married and having children create legal and taxable entities that include your DNA, the same applies to the formation of your micro-corporation. This unique entity is solely owned and controlled by you, with legal, business, and tax rights similar to any other entity in the business marketplace, whether human or non-human.
Allow me to illustrate your twin entity in this manner: Your virtual micro-business clone serves as an unseen energy field that envelops you, facilitating the seamless flow of all the professional services and care you deliver. Although they can be technically distinct, they present themselves as a unified entity to an outside observer. You hold the exclusive authority to choose whether to offer your professional services independently or through your clone - your professional micro-corporation. It's like having a superpower that you can activate whenever you need it. This ability is exclusive to a select few professionals in the US, and it's a valuable asset that you have earned through your rigorous professional training.
With your high net worth, need for asset protection, and unique knowledge-based service skills, you require a fully equipped and personalized micro-corporation tailored specifically for you by a legal professional who understands the needs of doctors. Rest assured, the cost is worth every dime to ensure it is done properly!At SimpliMD, we offer proven and trustworthy professionals who understand the needs of doctors through our professional network. We only recommend attorneys with whom we have personally worked and can vouch for them based on our positive experiences. This is just one of the many benefits of our trusted SimpliMD community.
The Tapestry of Terminology:
The names given to professional corporations for doctors vary across the nation, reflecting the unique legal nuances and regulatory frameworks of each state. The terms "Professional Medical Corporation (PMC)," "Professional Association (PA)," and "Professional Corporation (PC)" are among the common variations. However, the diversity doesn't stop there; each state may adopt its own distinct terminology, leading to a rich tapestry of names that can sometimes be perplexing.
The List
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Alabama: Professional Association
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Alaska: Professional Corporation
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Arizona: Professional Corporation
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Arkansas: Professional Corporation
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California: Professional Corporation
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Colorado: Professional Corporation
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Connecticut: Professional Association
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Delaware: Professional Corporation
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Florida: Professional Association
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Georgia: Professional Association
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Hawaii: Professional Corporation
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Idaho: Professional Association
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Illinois: Professional Corporation
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Indiana: Professional Corporation
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Iowa: Professional Corporation
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Kansas: Professional Association
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Kentucky: Professional Association
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Louisiana: Professional Medical Corporation
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Maine: Professional Association
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Maryland: Professional Corporation
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Massachusetts: Professional Corporation
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Michigan: Professional Corporation
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Minnesota: Professional Corporation
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Mississippi: Professional Association
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Missouri: Professional Association
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Montana: Professional Corporation
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Nebraska: Professional Corporation
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Nevada: Professional Corporation
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New Hampshire: Professional Association
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New Jersey: Professional Association
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New Mexico: Professional Corporation
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New York: Professional Corporation
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North Carolina: Professional Association
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North Dakota: Professional Association
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Ohio: Professional Association
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Oklahoma: Professional Association
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Oregon: Professional Corporation
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Pennsylvania: Professional Association
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Rhode Island: Professional Corporation
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South Carolina: Professional Association
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South Dakota: Professional Corporation
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Tennessee: Professional Association
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Texas: Professional Association
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Utah: Professional Corporation
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Vermont: Professional Association
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Virginia: Professional Corporation
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Washington: Professional Corporation
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West Virginia: Professional Corporation
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Wisconsin: Professional Association
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Wyoming: Professional Corporation
Legal and Regulatory Factors:
The primary reason for the divergence in nomenclature lies in the intricacies of state-specific legal and regulatory frameworks. Each state crafts its statutes and regulations governing the formation and operation of professional corporations for physicians. These legal intricacies can lead to variations not only in the name but also in the specific requirements and restrictions imposed on these entities.
State-Specific Requirements:
While the essence of establishing a professional corporation remains consistent – combining the healing art with entrepreneurial endeavors – the specific requirements, documentation, and compliance standards vary. State medical boards and legal authorities dictate the terms under which these entities can operate, reflecting the uniqueness of each jurisdiction. This is why it is so important to work with experienced legal professionals who understand doctors.
Navigating the Complexity:
If you are looking to establish professional corporations, navigating the complexity of state-specific requirements is crucial. It requires a keen understanding of the legal landscape, compliance nuances, and the terminology adopted by the state in question. SimpliMD acknowledges this diversity and aims to guide you through the intricacies, providing resources and support tailored to the specific legal environments that you encounter in your state.
The Unified Vision of SimpliMD:
While the names and legal intricacies may differ, the vision of SimpliMD remains unwavering – to inspire, inform, and support physicians in their journey towards micro-business competency. Our community is physician-led and created exclusively for physicians to support one another. When I provide a micro-business consultation for you, it will be filtered through the experience of a seasoned physician who has done this myself and understands your complicated life. I am not a salesman; I am a fellow physician whose goal is to help you thrive!
In the vibrant mosaic of American healthcare, the varied names of professional corporations for doctors across all 50 states reflect the intricate dance between healing and entrepreneurship. SimpliMD stands as a steadfast companion, offering guidance and resources to you on this unique journey. The diversity in nomenclature underscores the importance of a platform that understands and supports your nuanced needs as you strive to thrive both as a healer and entrepreneur.
I would also like to remind you, since I am not a legal or tax professional, that I do recommend that you work with a legal professional to help you do this the right way. Reach out to me today and let me help guide you and connect you the right people.
