and J.D., there are a number of other abbreviations that can follow a licensed attorneyâs name:
PC. In some states, it isn't uncommon to see the name of a law firm or attorney's office with the letters "PC" after it. PC stands for "professional corporation." Like limited liability companies, corporations and other business structures, professional corporations are legally recognized business entities in some states.
What does PC stand for in business terms? Professional Corporations (PC) are corporations for certain occupations â typically, service professions like lawyers, doctors, architects and the like. A professional corporation isnât allowed to branch out beyond the services for which it was specifically incorporated with the state.
What are the Professional Requirements for Becoming a Lawyer?
Penal CodePC Stands for Penal Code This is a collection of statutes that covers state laws regarding most criminal offenses. For example, charges of burglary, rape, or possession of an assault weapon would all be charged under the Penal Code.
Professional corporationsThe letters "PC" after a business's name stand for professional corporation. Professional corporations enjoy some, but not all, of the same liability protections as general corporations.
The difference between LLC and PC is straightforward. A limited liability company (LLC) combines the tax benefits of a partnership and the limited liability protection of a corporation. A professional corporation (PC) is organized according to the laws of the state where the professional is licensed to practice.
Professional corporations or professional service corporation (abbreviated as PC or PSC) are those corporate entities for which many corporation statutes make special provision, regulating the use of the corporate form by licensed professionals such as attorneys, architects, engineers, public accountants and physicians ...
Definition. PC. Personal Computer (generic term)
Professional Corporations (PC) are corporations for certain occupations - typically, service professions like lawyers, doctors, architects and the like.
PCs are subject to a 35% flat federal tax rate on their corporate earnings, which can be a disadvantage since C corporations are taxed at 15 to 34% for their earnings below $100,000.
While legally a sole proprietorship and an LLC/PLLC/PC are different, for tax purposes you may choose to set up your LLC so that it is the same as a sole proprietorship, or you may set it up as a corporation. Consult an accountant to decide what is best for you. How do you decide which entity is right for you?
The difference between LLC and PC is straightforward. A limited liability company (LLC) combines the tax benefits of a partnership and the limited liability protection of a corporation. A professional corporation (PC) is organized according to the laws of the state where the professional is licensed to practice.
Any law firm can choose to become incorporated as an LLC for legal and financial protection. In most cases, if one member of an LLC has a lawsuit brought against them, the other members will be protected from liability, and only the one member will be affected.
Stands for âInformation Technology,â and is pronounced âI.T.â It refers to anything related to computing technology, such as networking, hardware, software, the Internet, or the people that work with these technologies.
Medical doctor (not a chiropractor âDCâ nor an osteopathic physician âDO). PC means professional corporation that he has formed to run his business activities. If he is board certified, he will also have other initials, such as FACOG (fellow of the American college of obstetricians and gynecologists), etc.
It offers limited liability, offers tax advantages, can accommodate an unlimited number of partners, and is credible in that it is registered with the Ministry of Corporate Affairs (MCA). At the same time, it has fewer compliances than a private limited company and is also significantly cheaper to start and maintain.
Limited liability partnerships are owned by its âmembersâ who are referred to as âpartnersâ. LLPs donât have shareholders or directors, nor do they have shares. You need at least two members to set up an LLP.
LLP is a separate legal entity and can hold assets in its name. The status of Partnership Firm does not have separate identity from its Partners. The liability of Partners is limited to the extent of their contribution in LLP. Further, one Partner is not affected or not held liable for the actions of another Partner.
Generally speaking, they include accountants, engineers, healthcare professionals, lawyers, psychologists, social workers, and veterinarians. Typically, each individual organization limits their membership to one profession or grouping of professions.
A business attorney can also answer many of the questions you may have about setup and liability for business in your area. They can also make any requirements from a board of directors to stock shares and more.
A professional corporation status can be essential in some business models. If state laws allow you to register your business corporation accordingly, it could eliminate many hassles. Each situation has to be evaluated individually, though.
For example, a group of doctors who have their individual medical practice can form a professional corporation if their business is to practice medicine.
The list of professionals required to incorporate as a professional corporation, or personal services corporation, is given below: health care professionals (audiologists, dentists, nurses, opticians, optometrists, pharmacists, physical therapists, physicians, and speech pathologists) Of course, this is a general list.
While there is some limitation on liability surrounding the actions of each partner, the licensed professionals in the firm may not be relieved of liability for their own professional negligence or malpractice. This is the main reason professionals form this type of corporation.
Unlike a regular corporation, a PC for lawyers requires that each director, shareholder and officer be licensed to practice law. Further the legal PC may only provide services in its field.
A PC is much more formal, as operating decisions often require director approval and votes of shareholders. As with any corporation, you must hold shareholder and director meetings, keep records and minute books.
A professional corporation is a product of state laws which provide detailed provisions on what the corporation can and cannot do. A corporation should have its own set of by-laws and agreements that dictate the responsibilities and conduct of the corporation, its directors, and shareholders.
Unlike other states, California does not allow lawyers to form a limited liability company. Instead, California allows for the use of a professional limited liability partnership (LLP). Every other state allows for the formation of an LLC or a professional limited liability company (PLLC) for law firms.
The following are often required to form a PC: Accountants. Attorneys. Engineers.
A professional corporation or PC is one variation of a corporation. Licensed professionals who want to incorporate their practice can form a PC. However, the shareholders, directors, and officers must belong to the same profession.
In California, licensed professionals are limited to forming a sole proprietorship, general partnership, or professional corporation (PC). One advantage of an LLC is that each ownerâalso called a memberâhas limited liability, which means they are not personally liable for the financial obligations of the LLC.
While some states allow professionals to form an LLC, others require that professionals form a professional limited liability company (PLLC) as set out by state statutes. In a PLLC, the members and managers must be licensed to practice the same profession.
Accountants. Attorneys. Engineers. Medical doctors. Veterinarians. There are exceptions. Some states give professionals a choice between incorporating as a PC or as a regular corporation. In all states, certain professionalsâ again, check your state statutes âhave the option to form a PC.
The PC pays corporation taxes, and this means a sole practitioner gets hit with double taxation. Not only is their income taxed first at the corporation level, but it's taxed again as personal income. They can deduct corporate expenses, including disability insurance, life and health insurance, and payroll taxes.
For solo practitioners, however, this advantage doesn't matter, unless they plan to add additional professionals at a later date. In this case, forming as an LLC is often the better choice. In some states, however, single-member LLCs don't have any creditor protection.
In terms of tax advantages and tax law, an LLC has the flexibility to go with the default, which is âpass throughâ taxation, S-Corp. designation, which is also âpass throughâ and comes with some other restriction, or C-Corp. taxation where you pay corporate tax.
The main difference being, again, that professionals cannot operate as regular corporations and only professionals can be shareholders in a PC. Corporations default to C-Corp. taxation when they are formed. This means that they are considered a taxpaying entity and pay corporate tax on income.
An LLC can be opened by pretty much anyone who wants to run a business and protect their personal assets. This is what is meant by the term limited personal liability and the main reason people who start off as sole proprietors or in partnerships choose to incorporate.
A lawyer is any person who has graduated from law school and has earned a J.D. A lawyer may not necessarily have taken a Bar exam to practice law. An attorney, on the other hand, is licensed to practice law after passing a state Bar exam. It is an attorney who can use the esquire title after her name.
To become an attorney, one must do two things: graduate from law school and then pass the state licensing exam (know n as the Bar exam). Once a person graduates from law school, he can add the initials J.D. after his name, which stands for Juris Doctor, or the degree garnered.
What Does Esq. Mean When Talking About an Attorney? There are many initials that typically follow an attorneyâs name. One of those is Esq., which stands for esquire. In the legal field, there is a different connotation for what it means when Esq. follows an attorneyâs name instead of her credentials.
It's proper practice for opposing attorneys in a case to use Esq. when addressing correspondence to each other. However, itâs not required that the title be used when addressing an attorney. In more casual, social correspondence, Esq. should be included instead of a courtesy title of Mr. or Mrs. Both should not be used when writing to an attorney.
Instead, itâs a courtesy title that is used when addressing correspondence to a practicing lawyer, or attorney, who is now an esquire. For example, you might write on an envelope: Ms. Jane Smith, Esq.