Legal Question in Business Law in California

Re: Professional corp requierd for real estate?

The statute allows certain professionals to form professional corporations, but it does not require them to. There is no good reason to make incorporation mandatory. The option will be attractive to some professionals based upon their circumstances, but that does not mean it should be forced upon other professionals who would prefer not to incorporate.

Re: Professional corp requierd for real estate?

What you are missing is that the law is permissive, not mandatory. No one is required to incorporate to practice their business, trade, occupation or profession. It doesn't matter whether you are a doctor, lawyer, carpenter or real estate broker. You can practice as a sole proprietor, member of a partnership, or through a corporation. It is your choice.

There are a couple of limitations. Most licensed occupations cannot be practiced through an LLC. If someone is going to practice through a corporation, some occupations should use a "professional corporation," (doctors, lawyers, architects, nurses and others) while some cannot use professional corporations but must use ordinary corporations (licensed contractors, for example) if they use a corporation at all.

Re: Professional corp requierd for real estate?

What you're missing is the understanding that people make decisions for themselves whether to incorporate. The law 'allows', but does not require.