Professional Corporation FAQs
How does a professional corporation differ from the general business corporation?
The differences are:
- A professional corporation must also comply with North Dakota’s Professional Organizations Act, Chapter 10-31 as well as the Business Corporation Act, Chapter 10-19.1
- A professional corporation may provide only one professional service unless the licensing laws of North Dakota authorize two or more kinds of professional services to be practiced in combination.
- All shareholders must be licensed to provide the professional service for which the professional corporation was incorporated.
- The professional corporation must provide a certificate from the North Dakota board that licenses individuals to practice the professional services provided by the professional corporation certifying that all shareholders are licensed. To contact the licensing board, see www.governor.state.nd.us/boards/.
Where do the partners of the professional corporation obtain the professional
To contact the licensing board, see www.governor.state.nd.us/boards/.
Can another professional corporation, a professional limited liability company,
or a professional limited liability partnership be a shareholder of a professional
No, since no individual may be simultaneously an executive or owner of more than one professional organization. See NDCC, Section 10-31-06
Do all shareholders of a foreign professional corporation need to be licensed
to practice in North Dakota?
No, only those partners that will practice in North Dakota need to be licensed and provide certification of licensure with the application for certificate of authority filed with the Secretary of State.