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. Structure
Apr 11, 2022 · Professional Corporations (PCs), also known as professional service corporations, were created to allow certain kinds of professionals such as physicians, lawyers, accountants, or engineers to do business together. PCs might show up as S-corporations, C-corporations, or LLCs on their tax forms.
Sep 26, 2018 · 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 a popular form of organization for a solo practitioner, as it provides some liability protection, while still allowing you to keep your solo operation. Governing a …
Mar 30, 2020 · The letters "PC" after the name of a lawyer or other professional stands for "professional corporation." It's a type of legal entity used by accountants, doctors, lawyers, architects and others who provide expertise. Being a PC limits liability to being responsible only for their own actions.
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.
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.
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.
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.
One of the key benefits of a LLP or an LLC compared to a PC is flexibility. Each partner has the right to manage the business entity and make decisions about daily business operations. The basic governing structure is a partnership agreement, which doesn't even have to be written. However, individual states have statutes which will address certain aspects of the business, if there is no written agreement in place. So, if there is no written agreement or the agreement doesn't address particular issues, the LLP or LLC will be subject to the gap-filling provisions in their states' business code.
There's a huge tax difference between a PC and a LLP or an LLC. A professional corporation is a business entity that must pay income taxes for the corporation itself, which may result in double taxation. However, with an LLP or LLC, the member pays individual taxes, not the entity itself.
The key reasons to have a formal business structure is for liability protection and tax considerations. None of the business organization structures will protect an attorney from personal liability for professional malpractice, personal loan guarantees, or intentional torts.
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.
The formation of a PC requires articles of incorporation be filed along with the applicable fees with your secretary of state. There are also annual filings as dictated by state law. The articles should state:
The all-cap letters "PC" can stand for many things in our lives. The personal computer became known as a PC shortly after its debut. More recently, being PC has meant being politically correct, or saying what is customarily accepted as the "right" thing to say to avoid offending anyone regardless of what you might want to say. However, when you see the letters "PC" with lawyers' names, other professionals' names or after a company's name, the "PC" meaning is clear: professional corporation.
"PC" after a company's name stands for "professional corporation," a type of corporation used by professionals such as lawyers, accountants and doctors because of the limited liability and tax advantages it provides.
PCs are taxed in a way that comes with both advantages and disadvantages. For example, PC employees have higher contribution limits on retirement plans. PCs can provide health and life insurance benefits tax free and can receive deductions for additional benefits like disability insurance.
A limited liability company is like a partnership but with more limited liability. One advantage to professionals is that LLC members (as the LLC participants are called) can consist of different types of entities, such as individuals and corporations.
Understanding "PC" After a Name. A professional corporation, abbreviated as "PC" after a company’s name, is a type of corporation often seen in professions where highly educated people provide services to those who need their expertise, such as accountants, lawyers, doctors, architects, consultants and other professionals.
Designed specifically to give some protection from liability to professionals such as doctors, lawyers, architects and others, "PC" does not excuse all liability — it still holds professionals accountable for their own actions.
So, a doctor in a solo practice and a PC of doctors could join an LLC that has other doctor members as well. A disadvantage, however, is that members of an LLC are generally required to carry a high level of malpractice insurance.
A professional corporation or PC is one variation of a corporation. Licensed professionals who want to incorporate their practice can form a PC.
In a PLLC, the members and managers must be licensed to practice the same profession. In California, licensed professionals are limited to forming a sole proprietorship, general partnership, or professional corporation (PC).
A limited liability company or LLC is a legal entity that combines the limited liability protection of a corporation with the tax benefits of a partnership.
The following are often required to form a PC: Accountants. Attorneys. Engineers.
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 professionals— again, check your state statutes —have the option to form a PC.
If you want to practice law, you'll need to be licensed. Getting licensed earns you the lawyer abbreviation of Esq., which stands for Esquire . There are a variety of other career options available to those who earn a J.D.
It's a graduate degree and is required to practice law in the United States. LL.M. The Master of Laws (LL.M.) degree is available to people who already have a J.D. It provides advanced legal study and certification in a specific area of law, such as international law, human rights law or intellectual property law.
LL.B. The Legum Baccalaureus (LL.B.) is the foreign equivalent of a J.D. It's not available in the U.S.
Each designates a degree the attorney earned. The following are the most common lawyer initials: J.D. J.D. stands for "juris doctor” and is the degree received when an attorney graduates from law school.
When reading the names of some attorneys, it can seem like there's an entire alphabet written after the surname. Essentially, the more education an attorney has, the more lawyer abbreviations you might find after the individual's written name. If you have any interest in going to law school, it's helpful to understand the meaning behind the abbreviations and know which of these degrees may work best for you.