Starting a Professional Corporation
A Professional Corporation (some states refer to “Professional Associations”, PA) is a variation of the corporate form available to entrepreneurs that provide professional services
In other words, a Professional Corporation, “PC” , used in conjunction with a business name is a corporation formed by professionals such as lawyers, engineers, dentists, psychologists, social workers, veterinarians and medical doctors. Some states require professionals to form this type of entity if they wish to incorporate as well which professions are included in this category.
Typical name endings are Professional Corporation, Professional Association, or their abbreviations PC or PA. In some states it is also possible for form Professional Limited Liability Companies, which in this case, would have a name ending as “PLLC”. PLLCs are the equivalent to Limited Liability Companies (LLC).
A PA is attractive to professionals because it provides some of the tax advantages and liability protections of a business corporation. However, the fact of doing business as a PA, doesn’t exempt professionals of professional liability (for instance, a medical doctor can still be liable of malpractice even if doing business as a PC).
The cost associated with this filing is the same as the cost of a general corporation. However, professionals my be required to proof that they are members in good standing of their profession’s board.