Can this be e-signed?

Yes. Electronic signatures are generally enforceable under the ESIGN Act (15 U.S.C. ch. 96, 2000) and UETA where adopted, provided intent, consent, attribution, and reliable record retention are present.

Is notarization required?

Not typically for employment agreements; some states or specific clauses may require notarization or witnesses. Check state rules if notarization or acknowledgment is necessary for an attached document.

Specify payroll withholding and tax treatment; verify TIN/EIN accuracy to avoid backup withholding and reporting penalties under IRC rules.

How long must I keep signed copies?

Retain according to applicable federal and state rules: generally at least three years for tax records (IRC §6501(a)) and six years for HIPAA-covered documents (45 CFR §164.530(j)).

Who can sign for the corporation?

A duly authorized corporate officer or an individual with written delegated authority may sign. Attach corporate resolution if needed to show authority.

What if a party refuses electronic signing?

Offer a paper alternative; for consumer-facing financial or healthcare documents, obtain ESIGN consumer consent before proceeding electronically.

Electronic Signature
Templates
HR
Professional Corporation Employment Agreement

Professional Corporation Employment Agreement

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

What the Professional Corporation Employment Agreement Is

A Professional Corporation Employment Agreement is a written contract establishing the working relationship between a professional corporation (the employer) and an individual professional or service provider. It defines duties, compensation, benefits, tax treatment, professional liability allocation, and the duration of employment. Typical users include physician practices, law firms organized as professional corporations, and other licensed professionals operating through a corporate entity. The agreement clarifies business-to-practitioner responsibilities, licensing compliance, and whether income is paid as salary, shareholder distributions, or a combination of both.

Why this Agreement Matters and Its Legal Standing

Use this agreement to set clear expectations, reduce disputes, and document tax and licensing obligations; electronic execution is generally valid under the ESIGN Act (15 U.S.C. ch. 96, 2000) and UETA (1999) where adopted.

Typical users and when they complete this form

Organizations and individuals who need to document a corporation-to-professional employment relationship use this agreement to manage compliance and liability.

Small professional practices and PC owners preparing standardized employment terms for licensed staff.
General counsels and HR managers drafting enforceable obligations and tax reporting procedures.
Independent professionals contracting with their own professional corporation to formalize compensation and benefits.

Core components to include in the agreement

A complete Professional Corporation Employment Agreement organizes responsibilities, compensation, compliance obligations, and end-of-service terms so both parties understand rights and liabilities during and after employment.

Parties

Identify the professional corporation (legal entity name, state of incorporation) and the individual professional with full legal names and business addresses.

Term

Specify the effective date, fixed term or at-will status, renewal mechanics, and conditions that trigger automatic termination or extension.

Duties

Describe the role, scope of professional services, licensing requirements, continuing education expectations, and reporting relationships.

Compensation

Provide salary, draws, bonuses, profit-sharing, expense reimbursements, and treatment of payroll taxes and benefits.

Liability & Insurance

Address malpractice insurance, indemnification, limits on liability, and assignment of claims or defense obligations.

Termination

Define cause and no-cause termination, notice periods, severance, post-termination obligations, and non-compete or non-solicit provisions where lawful.

Step-by-step: completing and executing the agreement

Follow this sequence to prepare, review, execute, and retain the agreement while preserving legal validity and auditability.

01

Draft: Populate all required fields and attach exhibits.
02

Legal Review: Have counsel validate compliance and enforceability.
03

Signatures: Collect authorized corporate and professional signatures.
04

Retention: Store execution copies per retention rules.

Configuring a digital signing workflow

If you complete and route this agreement electronically, set fields and authentication to match your compliance needs and signer roles.

Field	Configuration
Signature Block	Assign to corporate officer and professional
Date Field	Auto-fill upon signing or require signer input
Attachments	Lock exhibits after upload to preserve integrity
Authentication	Require email + SMS code or stronger where needed

Delivery options and technical considerations

Choose delivery channels and signer authentication based on document sensitivity and regulatory obligations.

Email Link: Simple delivery; basic audit trail
In-Person Kiosk: Useful for supervised signing on-site
Remote Notarization: Use when notarization is required by state rules

Where to send the completed agreement

Routing depends on corporate governance, payroll, and regulatory filing needs; common destinations include HR, payroll, corporate records, and the professional’s personnel file.

HR Records: Retain signed original in employee file
Payroll: Provide copies for withholding setup
Corporate Secretary: Attach for corporate recordkeeping
External Counsel: Send when legal review or dispute arises

Key timing and filing deadlines to watch

Certain tax and employment records trigger statutory retention and reporting timelines; keep the agreement and related payroll records accessible to meet those obligations.

W-2 Reporting:

Employee copies due Jan 31 each year

1099-NEC:

Report nonemployee compensation by Jan 31

I-9 Retention:

Keep 3 years after hire or 1 year after termination (8 CFR §274a.2)

Tax Return:

Corporate and individual filings follow IRS schedules and extensions

Record Access:

Make records available promptly for audits or inquiries

Common preparation mistakes to avoid

Using informal or ambiguous compensation language that creates interpretation disputes later.
Failing to specify governing law and dispute resolution procedures before signature.
Mismatching names or TINs between agreement and payroll records, causing tax withholding errors.
Omitting professional licensing obligations or insurance requirements necessary for practice.

Consequences of errors or noncompliance

I-9 Paperwork: Penalties $281–$2,789 per violation (8 CFR §274a.2)

Misclassification: Wage claims and tax adjustments possible

Tax Reporting: Backup withholding 24% for incorrect TINs

1099 Penalties: $60–$330 per form (IRC §6721 ranges)

Intentional Disregard: $660+ per form, no cap (IRC §6721)

Breach Liability: Contract damages and indemnity exposure

eSignature vendor pricing and feature comparison

Compare common pricing and capability items for eSignature vendors relevant to executing employment agreements; signNow is listed first per platform comparison standards.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Varies by vendor	Varies by vendor	Varies by vendor	Varies by vendor
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

Who may sign on behalf of each party

Corporate Officer

An authorized corporate officer, typically the president or CEO, signs for the professional corporation after board approval or by delegated authority; include a resolution if required by corporate bylaws.

Designated Professional

The individual professional signs in their personal capacity and, where applicable, as a shareholder or officer; ensure licensing and personal indemnity clauses are acknowledged in writing.

Essential data elements to collect and verify

Employer Name: Full legal entity name

Employee Name: Full legal name exactly

Tax ID / EIN: Employer identification number

Effective Date: MM/DD/YYYY format

Compensation: Salary and bonus details

Signatures: Authorized officer and professional

Frequently asked questions and common issues

Answers to frequent questions about execution, enforceability, and recordkeeping for Professional Corporation Employment Agreements.

Need help? Contact support

Can this be e-signed?
Yes. Electronic signatures are generally enforceable under the ESIGN Act (15 U.S.C. ch. 96, 2000) and UETA where adopted, provided intent, consent, attribution, and reliable record retention are present.
Is notarization required?
Not typically for employment agreements; some states or specific clauses may require notarization or witnesses. Check state rules if notarization or acknowledgment is necessary for an attached document.
What about taxation?
Specify payroll withholding and tax treatment; verify TIN/EIN accuracy to avoid backup withholding and reporting penalties under IRC rules.
How long must I keep signed copies?
Retain according to applicable federal and state rules: generally at least three years for tax records (IRC §6501(a)) and six years for HIPAA-covered documents (45 CFR §164.530(j)).
Who can sign for the corporation?
A duly authorized corporate officer or an individual with written delegated authority may sign. Attach corporate resolution if needed to show authority.
What if a party refuses electronic signing?
Offer a paper alternative; for consumer-facing financial or healthcare documents, obtain ESIGN consumer consent before proceeding electronically.

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