California accountants who practice accountancy are permitted to form professional corporations here in California. The statutory authority is set forth in the Moscone-Knox Professional Corporation Act (the “Moscone-Knox Act”). See Cal. Corp. Code, §13400 et seq. Like all types of corporate entities, a Accountancy Corporation is formed by filing articles of incorporation with the California Secretary of State.

It is often better to form a Accountancy Corporation than to operate a practice as a sole proprietorship. The corporate form protects personal assets from being seized by business creditors and creating a California Professional Accountancy Corporation greatly facilitates adding licensed partners to a practice. The corporate form shields each of the partners from liability that may be alleged against the other(s). If you have questions about the requirements of forming a Professional Accountancy Corporation, or whether a Accountancy Corporation is the best entity type for your situation, reach out to the trusted corporate attorneys experienced in working with accountants.

Pursuant to California law, a Professional Accountancy Corporation has certain naming requirements that must be met when the corporation is formed. These name options include:

Accountancy: California Business and Professions Code Section 5060. “(a) No person or firm may practice public accountancy under any name which is false or misleading.

(b) No person or firm may practice public accountancy under any name other than the name under which the person or firm holds a valid permit to practice issued by the board.

(c) Notwithstanding subdivision (b), a sole proprietor may practice under a name other than the name set forth on his or her permit to practice, provided the name is registered by the board, is in good standing, and complies with the requirements of subdivision (a).

(d) The board may adopt regulations to implement, interpret, and make specific the provisions of this section including, but not limited to, regulations designating particular forms of names as being false or misleading.”

Consult with the experienced San Diego corporate attorneys to ensure that the name you want for your Professional Accountancy Corporation is compliant.

When forming a Professional Accountancy Corporation, retain an experienced San Diego corporate attorney to provide advice and assistance. There are special rules under the Moscone-Knox Act with respect to who may be shareholders — owners — in a Professional Accountancy Corporation. Likewise, there are limitations on who may be on the board of directors and who may serve as senior management. A Professional Accountancy Corporation is unique in this way.

The corporation may have employees — such as a receptionist or a book-keeper — who are not licensed as long as those employees are not providing any sort of professional accounting services.

Contact San Diego Corporate Law Today

For more information, contact attorney Michael J. Leonard, Esq., or Christina Gandy-Delgadillo, Esq., of San Diego Corporate Law. Michael and Christina can be reached at (858) 483-9200 or via email. These experienced corporate attorneys can ensure your Professional Accountancy Corporation is set up correctly and can assist with the annual maintenance of your California Professional Accountancy Corporation. San Diego Corporate Law provides a host of legal services for businesses including formation of other types of corporate entities.