More About Professional Corporations

Being a freelance court/shorthand reporter means becoming your own boss: taking the reigns on your future and business. Certification and education are, of course, the foundation for your business but have you thought about the best structure to house your future?

I don’t mean the office space you want to create or rent, but rather the framework for your business: your legal structure. Getting this right is critical to starting a successful court reporting business in California. With the right entity, you avoid legal earthquakes that could crumble your whole business in the blink of an eye.

So, what do you need to do to ensure your business is legally sound? Start with the very timbers and set up a professional corporation for your California business. Let’s take a look at professional corporations for shorthand court reporters.

How do I get a court reporting license in California?

So, you want to be a court reporter in the Golden State? Well, that’s great news! But before you start transcribing every word in the courtroom, you gotta jump through a few hoops first. Don’t worry, it’s not rocket science, and we’ll break it down for you.

First off, the education requirement. You’ll need to complete a court reporting program at a recognized school through traditional classroom-based instruction or online learning. These programs usually take about two years to complete, and cover subjects such as legal procedures, medical and technical terminology, speed building, and machine shorthand. Some schools even offer job placement assistance to help you land your first gig.

Next up is the training requirement. You’ll need to log a certain number of hours of hands-on experience, which can be obtained through internships, apprenticeships, or working as a freelance reporter. This will help you hone your skills, become familiar with court procedures, and get a feel for working in the real world.

And finally, the big test – the Certified Shorthand Reporter (CSR) exam. This comprehensive test measures your shorthand speed, vocabulary, and comprehension. You’ll need to pass this exam before you can get your license. So, make sure you study hard and are prepared to show what you’ve got!

So, that’s the skinny on how to become a licensed court reporter in California. Remember, it’s not a walk in the park, but if you’re dedicated and put in the effort, you’ll be on your way to a fulfilling career in no time!

What are the 4 methods of court reporting?

So, you want to be a court reporter? Well, you’ve come to the right place. One of the first things you need to know is the different methods of court reporting. It’s like knowing your ABC’s! And, there are four main methods to choose from: stenotype, voice writing, real-time reporting, and audio transcription.

Let’s start with the stenotype method. This involves using a special, stenotype machine to transcribe spoken words into written text. It’s like typing, but instead of using individual letters, you use combinations of keys to represent whole words or phrases. It takes a bit of skill to master, but once you do, you’ll be able to keep up with even the fastest talkers!

Next up, we have the voice writing method. This one involves, you guessed it, speaking what’s being said in the courtroom into a mask. It’s like singing in the shower, but you’re transcribing the proceedings instead of belting out tunes. It’s an art form requiring a strong voice, good memory, and excellent comprehension skills.

And last but not least, we have real-time reporting and audio transcription. Real-time reporting involves transcribing the proceedings as they happen, using computer software to produce a written text that can be displayed on a monitor or screen. Audio transcription involves transcribing recorded audio files like rewinding and playing back a tape. These methods are a bit more straightforward and are a good option for those who don’t want to invest in a stenotype machine or don’t have the voice for voice writing.

So, there you have it. The four methods of court reporting for California court reporters in a nutshell. It’s up to you to decide which one suits you best, but whatever you choose, make sure you’re prepared to put in the time and effort to master it. With dedication and practice, you’ll be transcribing like a pro in no time!

Nest, consider forming your own professional court reporting corporation.

What is A Shorthand Reporting Corporation?

A professional Shorthand Reporting corporation is a legal business entity structure in California. When starting your court reporting business in California, forming this type of entity is important because it follows the correct regulations and stipulations for legally performing court reporting in California.

This type of corporation is also registered with the California Secretary of State and is for those engaged in rendering the professional services of Court Reporting.

Who regulates Shorthand Reporting Corporations and Court Reporting Businesses in California?

The Department of Consumer Affairs – Court Reporters Board of California regulates Shorthand Reporting Corporations. They provide updates on fees, education on licensing and renewals, and much more which you can view via their website: https://www.courtreportersboard.ca.gov/

What are the California State Laws that regulate the formation of A Shorthand Reporting Corporation?

We’ve gathered a list of the California State Laws that you NEED to know when starting a court reporting corporation. These codes are critical to forming a legally compliant shorthand/court reporting firm:

  • California Corporations Code – §13401(b)
  • Business and Professions Code – Shorthand Reporter Corporations is located in the California Business and Professions Code starting with Section 8040.
  • California Code of Regulations – Title 16, Division 24, Article 7 Shorthand Reporter Corporations.

 

Is there an easy place to get access to all of the laws and regulations related to a Professional Shorthand Reporting Corporations Corporation?

Fortunately, there is! You can see all of the California laws with the Department of Consumer Affairs. Check out: Shorthand Reporting Corporations Board Laws and Regulations

Who can be a shareholder in a Shorthand Reporting Corporation?

Not just anyone can be a shareholder or director in your shorthand reporting corporation. If you are considering partnering with a business professional or looking to sell ownership for funding to start your court reporting business, you need to be aware of this!

Only licensed shorthand reporters may be shareholders, officers, directors, or professional employees of the Shorthand Reporting Corporations.

 

Can A Shorthand Reporter be a shareholder in more than one Professional Corporation?

Yes, a shorthand reporter may be a shareholder in more than one Professional Corporation.

Do I have to follow any Name style formalities when I form my Shorthand Reporting Corporation?

Yes, there are certain name style formalities you will need to follow for your court reporting business. When determining your business’ name, you’ll need to ensure the name of the corporation complies with the California Business and Professions Code 8043:

The name of a shorthand reporting corporation and any name or names under which it may be rendering professional services shall contain and be restricted to the name or the last name of one or more of the present, prospective, or former shareholders or of persons who were associated with a predecessor person, partnership, corporation or other organization and whose name or names appeared in the name of such predecessor organization, and shall include either (a) the words “shorthand reporting corporation;” (b) the title “certified shorthand reporter,” or the abbreviation “C.S.R.,” and wording or abbreviations denoting corporate existence; or (c) the words “a professional corporation.”

 

Can I Use A Fictitious Name for My Court Reporting Business in California?

You are allowed to use a fictitious name for your court reporting corporation, as the Shorthand Reporting Corporations Board does not prohibit using a fictitious name or a “DBA”.

Do I need a Certificate of Registration as a Shorthand Reporting Corporation?

Yes, you will need a certificate of registration.

Each year on or before July 31, each shorthand reporting corporation, except those licensed on or after May 16 of that year, shall file with the Board a report on a form provided by the Board reflecting its status as of June 30 and including such information pertaining to its qualifications and compliance with the statutes, rules, and regulations of the Board as the Board may require.

Each shorthand reporting corporation shall file a special report, on a form provided by the Board, within 30 days of any change of the officers, directors, shareholders, place of practice, articles of incorporation, or corporate name.

A Certificate of Registration shall continue in effect until it is suspended or revoked. Such certificate may be suspended or revoked if a shorthand reporting corporation fails at any time to comply fully with the provisions of these rules, with the statutory provisions governing certified shorthand reporters and the rules enacted by the Board pursuant thereto, and with the Moscone-Knox Professional Corporation Act and with other applicable provisions of the Corporations Code.

Each annual report filed hereunder shall be accompanied by a filing fee of $30.00.

Each special report filed hereunder shall be accompanied by a filing fee of $50.00.

 

Can anyone serve as an officer or director of Shorthand Reporting?

These offices are dependent on the number of shareholders of the Shorthand Reporting Corporation.

In general, each director, shareholder, and officer of a Shorthand Reporting Corporation must be a licensed shorthand reporter.

There are some exceptions:

  • A Shorthand Reporting Corporation which has only one shareholder needs to have only one director who shall be such a shareholder and who shall also serve as the president and treasurer of the corporation. The other officers of the corporation in such a situation need not be licensed persons.
  • A Shorthand Reporting Corporation which has only two shareholders need have only two directors who shall be such shareholders. The two shareholders between them shall fill the offices of the president, vice president, secretary, and treasurer.

 

Is there a great resource to find the California Laws and Regulations relating to the Practice of the Shorthand Reporting Corporations in a professional Shorthand Reporting Corporations Corporation?

Yes, you can find the 2018 guide here:

Shorthand Reporting Corporations Board Laws and Regulations

Client Question:I recently graduated in August and moved myself down to San Francisco, California (greater LA area). I tried to find a suitable associate position but having found that to be close to impossible I am in the process of starting my own small court reporting firm.
I am having a hard time finding an small business attorney to help me decide on what kind of business entity I want to be, every local court reporter that I have asked has only told me how much they hate their attorney and are looking for a new one.
I think it is best to limit my liability by going for a PC (or professional corporation, the California version or a LLC) or an S-Corp since I will hope to be taking out a small business loan to start out. I just don’t know which will be better for me as a single court reporter starting out. I know there are different tax implications for each form but even after researching online I couldn’t really figure out what they were. The only disadvantage I have heard on in an S-Corp is that you have to have yearly documented board meetings in order to maintain legitimacy, which I think would consist of me sitting in a room talking to myself saying “same plan as last year guys? Yeah, that sounds good”.
A few court reporters have recommended that I do all the paperwork and incorporation online rather than through an attorney as it is faster and saves a lot of money, has anyone been burned by this before?
What corporation is best for a small startup shorthand reporting firm, and did you form your company online or through an attorney?

These are a ton of questions, and it’s quite understandable why you have all of these running around in your mind. After all, you want to make sure that you start your small clinic right.

The best decision to make is to work with a corporate attorney that specializes in forming Professional Shorthand Reporter Corporations in California. By working with an experienced lawyer, you can be sure that all your questions will be answered.

A dependable corporate lawyer will help you understand how a professional corporation is a correct entity for your court reporting service, assist you through the process of forming the Professional Shorthand Reporting Corporation in California, and be available for you when you need legal and corporate advice.

The short answer to your question is the best option for Shorthand Reporter setting up a small service and running it as a one-person Shorthand Reporting service would be to form a professional Corporation making the S election for tax purposes. There are a lot of complexities in the forming of a professional corporation. You need to satisfy not only state law but the specific requirements of your particular board. Though I suppose it would be possible to learn how to take shorthand by watching YouTube or Google, the most reasonable thing for a person to do is turn it over to a professional like a licensed shorthand reporter. The same is true when it comes to practicing law. It is far better to allow the professionals to guide you through the complicated process, rather than to try to figure out how to do it online. Just to simply avoid the problems that you will run into with the Department of Consumer Affairs – Court Reporters Board of California will make the investment in using a professional to form your corporation well worth the money.

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Rest Assured that Your Framework is Legal Inside and Out: Choosing a Specialist When Starting Your Court Reporting Business in California

You’re taking the reins on your life by building your own business—why would you start with anything other than a solid foundation?
Find an attorney who specializes in forming professional corporations for court reporters starting a new business in California. We’ll talk you through S-Corp to LLC and know the laws and best entity for your situation. Click here to get started!

If you have a question that hasn’t been answered yet, please reach out to us. We’ll answer your question and ensure it is added to this guide.