Which of the following statements about professional corporations is TRUE?

Professional corporations are a specific type of corporate structure designed for licensed professionals, such as doctors, lawyers, and accountants. The statement that they limit ownership to licensed professionals is accurate because this structure is intended to ensure that only individuals who are authorized to provide the professional services, and who are licensed according to the regulations governing the specific profession, can hold ownership in the corporation.

This regulation helps maintain the quality and integrity of the professional services rendered, as it ensures that all owners have the necessary education, training, and ethical standards expected in their respective fields. As such, professional corporations work to protect public interests by limiting ownership to those who are qualified.

The other statements do not align with the nature of professional corporations. For instance, these corporations must adhere to certain corporate formalities, such as holding regular meetings and maintaining formal records. They also do not provide blanket limited liability for all forms of malpractice, as professionals can still be held personally responsible for their own negligent acts. Additionally, professional corporations do have ongoing filing requirements to comply with state regulations governing corporate status and professional conduct.