If you are an Acupuncturist looking to start your own business in California, you’ve come to the right place. If you have been looking into becoming an independent contractor for a clinic, hospital, or any organization, forming your own professional corporation is the best way to do it.  

We have had so many questions from clients in the same profession requesting business consultations on the steps and guides to starting their own corporation. Here, we answer these questions as guidelines to help you make the best decision for your business. To start your business as an acupuncturist, we lay out the pros and cons and provide the best options to steer away from any inconveniences from tax laws and state regulations. Find out more as we delve into the details.  

How to Form Your Acupuncture Professional Corporation in California 

Client Question: Should I form a Professional Corporation for my Acupuncture business in order to be hired by other businesses? 

Answer: Yes, unless the business you will be hired into doesn’t require you to. But forming a corporation has its own reasons and benefits for both the employer and the individual.  

Client Question: What are the reasons why I should form a professional corporation instead of sticking as an individual doing his private practice? 

Answer: Last January 2012, the state of California passed a law for independent contractors and their transactions between companies. The law regulates the job specifications in which businesses can only allow to hire them as “independent contractors” should their job be outside the scope offered by the hiring business or corporation. In the case of acupuncturists when working in a clinic or hospital, it is clear that as an individual, they would have to be hired as employees rather than independent contractors. Moreover, should they opt for private practice as independent contractors, the best option for them would be to form a professional corporation because it also serves as a protection from the AB5 law both from the hiring business as well as the acupuncturists.   

How to Differentiate an Employee, Independent Contractor, and An Acupuncture Professional Corporation 

As an acupuncturist, there are a few options to start your practice. Either you apply as an employee in a business organization, be an independent contractor (in most cases it’s very difficult for business owners to deal with because of the AB5 law), or form a professional corporation. While every option has its own pros and cons, many acupuncturists now opt to form their own business or private practice through a professional corporation.  

Client Question: What’s the difference between an employed acupuncturist and an independent contractor as per California law? 

Answer:  To elaborate the differences, an employee varies from an independent contractor in such a way that an employee should still be under the control of the hiring business entity and be subject to the company’s laws as well as be directed in terms of performance and labor. An independent contractor is a self-employed individual who accepts a working contract the hiring business entity needs without having to provide for them the usual benefits given to their employees.  

Client Question: What kind of protection do I get from forming a professional corporation for my Acupuncture business? 

Answer: Because of the AB5 law, business owners, as well as acupuncturists, are having a difficult time engaging in business transactions because the law states that independent contractors can only be the people who provide products and services outside the course offered by the hiring business entity. This means independent contractors of a clinic or hospital can be a security agency or cleaning facility for instance. The California labor code section 226.8 was created because the government analyzed some loopholes in terms of misclassifying employees as independent contractors. Acupuncturists were included in this misclassification.  

As a professional corporation, you steer away from the limitations brought about by the AB5 law because you are no longer an individual doing his private practice, but another whole business entity. You also gain a lot of benefits from forming a professional corporation because it provides greater advantages in terms of tax payments.  

How to Form Your Professional Corporation in California 

Like many medical professional corporations, acupuncturists can form their business by first coming up with a corporate name under strict compliance from the California state law and regulations. Once you’ve complied with the name requirements, it’s mostly up to our expert corporate attorneys to do the job and build your business into reality.  

Start Your Acupuncture Business by Forming A Professional Corporation with Us Now! 

We’ve laid out all the answers for you to start tracking your acupuncture business in California. You now know the pros and cons of becoming an independent contractor and understand the first and basic steps into forming your own professional corporation. With our expert corporate attorneys, we will proceed to build your dream business into a reality. Contact us now at +1 (714) 634-4838 and let us help guide you on forming your professional acupuncture corporation.