How to Form a Professional Corporation in Georgia
Written by Jimbob Soupbone in Incorporation on Sun 09 July 2023.
If you are a professional looking to start your own business in Georgia, one option to consider is forming a professional corporation (PC). A PC is a specific type of legal entity that is designed for licensed professionals, such as doctors, lawyers, and accountants, who wish to operate their professional practice in a corporate structure. This article will guide you through the process of forming a professional corporation in Georgia.
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Step 1: Choose a Name for Your Professional Corporation
The first step in forming a professional corporation in Georgia is selecting a suitable name for your business. The name must meet certain criteria, including being distinguishable from the names of other registered entities in Georgia. It is a good idea to check the availability of your chosen name by conducting a search on the Georgia Secretary of State's website. Once you have confirmed that your chosen name is available, you can proceed to the next step.
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Step 2: Obtain and File Articles of Incorporation
To officially form your professional corporation in Georgia, you will need to file the Articles of Incorporation with the Georgia Secretary of State's Corporations Division. The Articles of Incorporation serve as a legal document that outlines the basic structure and purpose of the corporation.
When preparing your Articles of Incorporation, you will need to include important information such as the name of your professional corporation, the names and addresses of the incorporators, the initial registered office and registered agent, and the specific professional services that the corporation will offer.
Step 3: Draft and Adopt Corporate Bylaws
After filing the Articles of Incorporation, the next step in forming your professional corporation is to draft and adopt corporate bylaws. Bylaws are the rules and regulations that govern how the corporation will operate. It is important to draft comprehensive bylaws that cover key aspects such as officers and their respective duties, annual shareholder and director meetings, and voting procedures.
Once the bylaws have been drafted, they should be adopted by the board of directors, who will hold a meeting to review and approve the bylaws. It is advisable to seek legal guidance when preparing your corporate bylaws to ensure compliance with all relevant regulations.
Step 4: Hold an Organizational Meeting
Upon adopting the bylaws, your professional corporation should hold an organizational meeting. During this meeting, certain key actions are taken, including:
- Appointment of officers: The board of directors will appoint officers such as President, Vice President, Secretary, and Treasurer.
- Allocation of shares: If your professional corporation will have multiple shareholders, this is the time to determine the allocation of shares among the shareholders.
- Adoption of additional policies: This meeting is an opportunity to adopt essential policies, such as a conflict of interest policy or a code of ethics.
During the organizational meeting, minutes should be taken to record the decisions and actions taken. It is important to retain these minutes as they serve as a legal record of the meeting.
Step 5: Obtain Licenses and Permits
As a professional operating a professional corporation in Georgia, you may need to obtain various licenses and permits to comply with industry-specific regulations. For example, medical professionals may need to obtain a license from the Georgia Composite Medical Board, while attorneys may need to obtain a license from the Georgia State Bar. Be sure to research and understand the licensing requirements for your profession to ensure compliance.
Step 6: Register for Federal and State Taxes
Lastly, to ensure compliance with taxation laws, your professional corporation will need to register for federal and state taxes. In Georgia, you will need to register with the Georgia Department of Revenue for state taxes. Additionally, if your corporation will have employees, you will need to register for federal taxes by obtaining an Employer Identification Number (EIN) from the Internal Revenue Service (IRS).
Conclusion
Forming a professional corporation in Georgia involves several important steps, from selecting a suitable name to registering for taxes. By following these steps, you can establish your professional practice in a corporate form that provides liability protection and conform to industry-specific regulations. Remember, seeking professional advice from an attorney or accountant can help ensure that you navigate the formation process smoothly. Best of luck with your professional corporation venture in Georgia!
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