Starting a Professional Corporation
A Professional Corporation (some states refer to them as Professional Associations) is a variation of the corporate form available to entrepreneurs that provide professional services 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 to 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 PC 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 PC, doesn’t exempt professionals from professional liability with regards to negligence or malpractice. The cost associated with this filing is the same as the cost of a general corporation. However, professionals my be required to prove that they are members in good standing of their profession’s board.