Most states have statutes providing for incorporation by those performing specific types of professional services such as doctors, dentists, accountants, lawyers, architects, etc. These corporations are set up and operated similar to a regular corporation but there are a few restrictions.
Usually, the statutes provide that only a person holding the license required to practice the professional service can be a shareholder or at least a majority shareholder. In addition, only those holding the professional license can normally be a director or officer of the corporation except for the corporate secretary.
The reason for these restrictions is that the professionals are strictly regulated by license requirements of their profession and the law does not want unlicensed people making decisions that might compromise the professional’s judgment on matters within their expertise.
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