In California, licensed professionals (doctors, dentists, lawyers, accountants, etc.) who want to incorporate MUST use a professional corporation. You cannot use a regular corporation or LLC for a dental practice. This is governed by the Moscone-Knox Professional Corporation Act (Corp. Code ยง 13400-13410).
Key PC requirements:
- All shareholders must be licensed professionals in the same or related field. You can't have non-dentist investors as shareholders.
- Officer requirements: Chair, president, and majority of directors must be licensed in the profession.
- Name: Must include "Professional Corporation" or "A Professional Corporation" (abbreviated to "PC" or "A PC" is also acceptable).
- Annual certification: Must file an annual statement with the applicable licensing board (Dental Board of California).
- No LLC option: Unlike many states, California does NOT allow PLLCs (Professional Limited Liability Companies) for dentists.
The PC does NOT protect you from malpractice liability โ you're still personally liable for your own professional negligence. But it does protect your personal assets from general business debts (leases, vendors, employee claims, etc.).