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⍰ ASK Are there any restrictions on the use of certain business structures for specific types of businesses in the USA?

One example is the professional corporation (PC), often mandatory in fields like law, medicine, and accounting. Professionals in these industries must organize as professional corporations to meet regulatory standards and uphold ethics.

Certain industries have specific structure requirements. Banks and financial institutions must operate as corporations to comply with regulations. Nonprofits use the taxexempt Section 501(c),(3) structure under the Internal Revenue Code.

Business structure choices can be influenced by licensing requirements. States or licensing boards may dictate allowable structures in regulated industries, ensuring businesses meet criteria and maintain professional standards.
 

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