A bill that would amend, supplement and repeal various sections of the Professional Service Corporation Act will be heard in the Senate Commerce Committee today. S-2386 is sponsored by Senator Nia H. Gill and was drafted by Stuart L. Pachman, of Brach Eichler, LLC, and Steven R. Antico, of Garfunkel Wild, P.C., members of the association’s Business Law Section.
The bill is designed to eliminate the requirement that each shareholder of a professional corporation be licensed within the state to provide the type of professional services for which the corporation was incorporated. This would enable professionals who are licensed or otherwise legally authorized to provide services in other states to be shareholders of a New Jersey professional corporation, provided at least one shareholder is licensed by the state of New Jersey. Additionally, the bill allows foreign professional corporations to do business in New Jersey through shareholders or employees who are licensed in New Jersey, a practice that is currently only available to foreign professional legal corporations. It also expands the ability of domestic professional corporations to merge with a foreign professional corporation, or a domestic or foreign limited liability company, authorized to provide the same professional services.
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