what does pc mean for a lawyer?

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.

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What does PC mean in legal terms?

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

What does PC stand for after a business name?

Jul 16, 2021 · 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.

What does PC stand for?

Sep 26, 2018 · Governing a Professional Corporation. 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. A PC is much more formal, as …

What does PC after a name mean?

Mar 28, 2014 · What does PC stand for after an attorney name? PC is a professional corporation. It's more or less like a corporation but with special rules concerning who can own it and addressing liability ...

What professions use a PC?

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.

What is a business attorney?

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.

Can a licensed professional be relieved of liability for malpractice?

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.

Is a professional corporation necessary?

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.

Can a group of doctors form a professional corporation?

For example, a group of doctors who have their individual medical practice can form a professional corporation if their business is to practice medicine.

Who is required to incorporate as a professional corporation?

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.

Do I need to carry a certain designation in my company name?

You may have to carry a certain designation in the company name, such as “PC” for professional corporation. You will also need to draft corporate by-laws. These are the rules of how businesses will operate and be governed.

What is a PC for lawyers?

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.

What is a PC in business?

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.

Why do we need a formal business structure?

None of the business organization structures will protect an attorney from personal liability for professional malpractice, personal loan guarantees, or intentional torts . However, an LLP, LLC or a PC will protect against liability for the malpractice of other partners or shareholders and business-related liabilities, such as a slip and fall near the watercooler.

What happens if there is no written agreement?

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.

What should the articles of incorporation state?

The articles should state: the intention to operate as a corporation; a definition of the corporation's purpose; the names of the officers and shareholders; and. the agent for the service of process.

Why do we need partnership agreements?

The idea behind partnership agreements or by-laws is to prevent conflict down the road when a new situation arises. The more thought that goes into the initial agreements on the front end will prevent or minimize any business interruptions when unexpected events happen down the road.

What is professional corporation?

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.

What does it mean to be a PC?

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, ...

What does PC stand for in business?

"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.

How are PCs taxed?

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.

What is a limited liability company?

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.

What is a PC after a name?

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.

Does PC cover all liability?

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.

Can a doctor in a solo practice and a PC of doctors join an LLC?

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.

What is the difference between a PC and a PLLC?

Differences Between PC and PLLC. A PC is usually considered to be a C-Corp [1] by the IRS and its profits are taxed at the corporate tax rate. A PC is also subjected to “double taxation.”. The difference for a PLLC is that though a PLLC may choose to be taxed like a C-Corp or an S-Corp, the business doesn’t pay taxes.

What is a professional LLC?

A professional limited liability company (PLLC) is an LLC designed for licensed professionals. It also requires a similar incorporation process to form an LLC and you must draft articles of organization and operating agreement for your state business filing. Rules also vary widely by state.

What are the benefits of a PLLC?

One of the benefits of a PLLC is that it protects the assets of the practice if the owner loses a major malpractice suit, gets divorced, and so on. A PLLC also offers “charging order” protection. Last ly, a PLLC is not subject to double taxation.

What is the difference between a professional corporation and a standard corporation?

The major difference between a professional corporation and the standard corporation is that professionals cannot operate as regular corporations and only professionals that are licensed to practice can be shareholders in a PC.

What are the pros and cons of 401(k)?

Allows higher contributions to 401 (k) plans. Provide certain benefits to employees on a tax-free basis, which include life and health insurance. Shareholders may gain tax benefits. Ownership is easier to transfer, though it is restricted.

Does a professional corporation protect the owner from personal liability for individual malpractice or misconduct?

Cons. A professional corporation (PC) does not protect the owner from personal liability for individual malpractice or misconduct . A PC is likely to be subjected to double taxation like other corporations, except when the S-Corp is formed. Not every profession can form a PC and your state will determine your eligibility.

Is a PC a PLLC?

A professional corporation is more suitable for high-income companies that can take advantage of the corporate tax rate and for owners who want to bring in new shareholders easily. However, your state may have restrictions on who can form a PLLC vs PC.

What does a PC protect?

Your PC protects other shareholders, such as other doctors in your practice . Without PC protection, they can be held personally liable for your malpractice, but when your practice is structured as a PC, only the doctor who commits the malpractice is liable.

Do you have to be licensed to work in an LLP?

Limited liability partnerships, or LLPs, don't necessarily require you to be licensed, but they offer personal protection for you in case one of your partners makes a major mistake. If you're an attorney in an LLP, for example, you can't be sued personally if one of your business partners commits negligence in a legal case.

What does esq mean in law?

In the USA, lawyers use Esq., meaning “esquire, ” to indicate their status. As a social matter, though, the circumstances in which a lawyer can use Esq. as a postnominal are fairly constrained. Declaring yourself an attorney in this way is considered gauche in almost all cases.

What does P.A. stand for?

P.A. stands for “Professional Association” which is a type of business entity which can only be created by people in certain professions (most commonly lawyers).

What does PA mean in business?

PA = PC [Professional Corporation] in all practical respects. However, the PA will lack formal organizational documents for “a corporation” and the PA will likely have to publish the banns at the time of its formation - as do LLCs. To publish the banns [which. Continue Reading.

What is a professional association?

Professional Associations are a form of business entity that is available in some states for a business that primarily engages in a professional service. The “PA” is similar to a corporation. Other professionals, like real estate agents, doctors, and architects, can also organize their business entity as a PA.

Can a lawyer have a doctorate?

A lawyer may have a doctorate in any discipline and many have. I have friends who are practicing lawyers and physicians. One is not a doctor, in the legal academe, without an LL.D. or Ph.D. Ontario, in its rush to become more American, has seen its law schools changing the name of their degrees from LL.B. to JD.

Is "counselor" a title?

Echoing what others have said, in the U.S. there is no typical title for a lawyer. Sometimes "counselor" is used, but strangely it doesn't seem like it's ever used with the person's name. As in: "You have a good point, counselor.".

Can you sue a lawyer for malpractice?

However; you may still sue the lawyer, personally, for malpractice.