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How to qualify as a personal service corporation
Meet the minimum requirement for providing services.
The irs will examine the work of your company. To qualify as a professional service corporation, substantially all of the activities of your business must consist of professional services on the part of employee-owners.
Shareholders in a qualified personal service corporation must provide at least 20% of the corporation's services. For example, if your personal service corporation is a law firm, at least 20% of the operations of the corporation must consist of legal services.