Scarinci Hollenbeck, LLC
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Author: Scarinci Hollenbeck, LLC
Date: October 26, 2017
The Firm
201-896-4100 info@sh-law.comA professional services corporation (PSC) is a special type of business entity that may be formed exclusively by licensed professionals. Some examples are certified public accountants, architects, optometrists, professional engineers, land surveyors, land planners, chiropractors, physical therapists, registered professional nurses, dentists, physicians, and veterinarians.
A professional services corporation closely resembles a regular corporation in many ways, but a PSC has certain special requirements. In New Jersey, professional services corporations are governed by the New Jersey Professional Service Corporation Act (Title 14A, Chapter 17, New Jersey Statutes) and the Business Corporation Act of New Jersey (Title 14A, Corporations, General, New Jersey Statutes).
Under New Jersey law, one or more persons, each of whom is duly licensed or otherwise legally authorized to render the same or closely allied professional service within the state, may organize and become a shareholder or shareholders of a professional corporation. “Closely allied” professional areas are defined as architecture, professional engineering, land surveying and land planning; and any branch of medicine, surgery, optometry, optician, physical therapy, registered professional nursing, and dentistry.
A professional corporation cannot engage in any other business activity other than rendering the professional service for which it was incorporated. Below are several other key requirements:
All New Jersey corporations must register with the State of New Jersey Department of the Treasury. You may complete the required forms online or print and mail the forms to the Treasury Department. In either case, you will need to provide the following information to register your professional services corporation:
For professionals considering a PSC, it is always a good idea to consult with an experienced accountant and attorney who can fully advise you regarding the best legal structure for your New Jersey business, including the most advantageous structure in terms of flexibility, taxes, and limited liability.
For more information about PSC’s or if you have any questions, please contact me, Michael A. Jimenez, Esq., Counsel in Scarinci Hollenbeck’s Corporate Transactions & Business Group, at 201-806-3364.
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