what is a lawyer who is p c

What is a PC lawyer?

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, …

What is the meaning of PC in law?

An abbreviation for professional corporation, which is a special corporation established by professionals, such as physicians, accountants, or, in some states, attorneys, who practice …

What kind of lawyer do I Need?

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, …

What does PC mean in legal terms?

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 …

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 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.

Who is Jeffrey Johnson?

Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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.

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.

What are the advantages of an LLC vs a PC?

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.

What is the difference between a PC and an LLC?

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.

Why do lawyers need a formal business structure?

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.

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.

Do you need articles of incorporation for a PC?

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:

What is a professional corporation?

Professional corporations provide a limit on the owners' personal liability for business debts and claims. Incorporating can't protect a professional against liability for his or her negligence or malpractice, but it can protect against liability for the negligence or malpractice of an associate.

What are the requirements for a professional corporation?

The list of professionals required to incorporate as a professional corporation is different in each state. Usually, though, mandatory professional incorporation requirements apply to these professionals: 1 accountants 2 engineers 3 health care professionals such as audiologists, dentists, nurses, opticians, optometrists, pharmacists, physical therapists, physicians, and speech pathologists 4 lawyers 5 psychologists 6 social workers 7 veterinarians.

What professions are required to incorporate?

Usually, though, mandatory professional incorporation requirements apply to these professionals: accountants. engineers. health care professionals such as audiologists, dentists, nurses, opticians, optometrists, pharmacists, ...

Can a professional form an LLC?

As an alternative to incorporating, professionals wishing to limit their personal liability can also consider forming a limited liability company (LLC). States laws vary on what type of entity professionals can form though so be sure to check the rules for your state. For example, professionals are not allowed to form an LLC or professional limited ...

Do professional corporations pay taxes?

Unlike sole proprietorships, partnerships, and LLCs, professional corporations do not enjoy pass-through taxation, which means the professional corporation pays tax on its profits, and the owners pay tax a second time on the same income on their personal tax returns.

Can a doctor incorporate a professional corporation?

In many states, people in certain occupations (for example, doctors, lawyers, or accountants) who want to incorporate their practice can do so only through "professional corporations" (PC) or "professional service corporations.". In other states, some professionals have a choice of incorporating as either a professional corporation ...

Can a professional LLC be a partnership in California?

For example, professionals are not allowed to form an LLC or professional limited liability company in California and instead must form either a professional corporation or a registered limited liability partnership. In some states, you have the option to form a professional limited liability company (PLLC).

What is a PLLC in California?

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).

What is a PC?

A professional corporation or PC is one variation of a corporation. Licensed professionals who want to incorporate their practice can form a PC.

What is LLC in business?

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.

What happens to a professional when he retires?

If a professional retires or leaves, ownership is easily transferred to the others, and professionals can share management responsibilities and profits without worrying about being liable for each other's malpractice actions. The flat corporate tax rate, however, could limit corporate growth.

What professions are required to form a PC?

The following are often required to form a PC: Accountants. Attorneys. Engineers.

Can creditors come after personal assets?

Both limit an owner's personal liability for business debts and claims to business assets, and creditors cannot come after personal assets. Neither protects you against personal liability for your own malpractice, negligence, or personal wrongdoing. Malpractice protection is often why professionals file as a PC to avoid financial liability for ...

Does a business owner report profits on Schedule C?

The owner reports all profits, or losses, as self-employment income on their Schedule C and submits it with the 1040 form in their personal taxes.

What does J.D. stand for in law?

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.

What is LL.M. law?

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.

What is LL.B. in medical?

LL.B. The Legum Baccalaureus (LL.B.) is the foreign equivalent of a J.D. It's not available in the U.S.

What does "esq" mean in law?

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.

Do lawyers have abbreviations?

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.

What is a C corporation?

A C corporation will be classified as a personal service corporation if substantially all the stock is owned by corporate employees engaged in the following activities or professions: health services. law. accounting. engineering. architecture. consulting. actuarial science, or. performing arts.

How to form a professional corporation?

To form a professional corporation, you must file articles of incorporation with the secretary of state and pay a filing fee. In contrast to an ordinary corporation, which may be formed any lawful purpose, a professional corporation’s articles must limit its corporate purpose to the practice of the profession that its shareholders are licensed to perform. Unlike ordinary corporations, professional corporations must also usually obtain approval from the state professional licensing board that regulates the profession. The state licensing board will ensure that all shareholders are licensed professionals in good standing. For more on how to form a professional corporation, see professional corporations on nolo.com.

What are the benefits of a C corporation?

Nevertheless, professional corporations that are C corporations enjoy certain tax benefits. The tax law allows a C corporation to provide its employees with many types of fringe benefits which it can deduct from the corporation’s income as a business expense. These include: 1 health, accident, and dental insurance 2 disability insurance 3 deferred compensation plans 4 working condition fringe benefits such as company-owned cars, and 5 group term life insurance.

What are the professions that are restricted by the state?

psychologists. social workers. veterinarians, and. health care professionals such as doctors, dentists, nurses, physical therapists, optometrists, opticians, and speech pathologists. Most states impose restrictions on who may own a professional corporation and the work it can do.

Is a professional corporation a C corporation?

A professional corporation can be either a regular C corporation that is a separate taxpaying entity that files its own tax returns and pays taxes at corporate tax rates, or it can elect to be taxed as an S corporation in which profits or losses are passed through the corporation to be taxed on the shareholders’ personal tax returns. ...

Is a doctor in a professional corporation personally liable?

Thus, for example, a doctor in a professional corporation is not personally liable if another doctor-shareholder carelessly injures a patient. However, the individual shareholders in a professional corporation are always personally liable for any losses caused by their own carelessness. Thus, a doctor-shareholder of a professional corporation is ...

Who is personally liable for any losses caused by their own carelessness?

The individual shareholders in a professional corporation are always personally liable for any losses caused by their own carelessness.

What is attorney client privilege?

Attorney-client privilege is one of the most important protections afforded to litigants in a lawsuit. This privilege protects all communications that occur between an attorney and a client for purposes of seeking or receiving legal advice. This means that clients and their attorneys can talk without restraint, ...

Why is the privilege of a lawyer eliminated?

If the client brings a random friend to a meeting, or discusses a conversation that took place with an attorney with a stranger, then the privilege is eliminated because the conversation has been disclosed to a third party. Accordingly, conversations between clients and attorneys must be kept confidential and closely guarded.

Do attorneys have to keep client conversations confidential?

Accordingly, conversations between clients and attorneys must be kept confidential and closely guarded. When attorneys are dealing with individual clients, it is relatively easy to determine when the attorney-client privilege applies to communications and to make sure that those communications are protected. When communications begin ...

Is attorney-client privilege limited?

The first, and most important thing, to recognize is that attorney-client privilege between corporate attorneys and employees is limited and must relate to legal advice and the employee’s actual duties at the company. Any employee who speaks with an attorney should be aware of these limitations.