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People also ask
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Can a professional corporation limit liability but not for one's own malpractice?
FAQs: Will a PC protect me from personal liability for my own malpractice? No, you are still personally liable for your own professional negligence, and a PC will not fully shield you from vicarious liability if you supervise or control other attorneys.
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What's the difference between a PC and PLLC?
The difference between a PC and a PLLC is ultimately the same as the difference between a corporation definition and a regular LLC. One major difference is how these entities are taxed. The PLLC has a few options for taxation, and all of them are likely to save ownership money compared to a PC.
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Is a PC the same as an LLC?
A PC business entity is reserved for specialized professions and offers even more liability protection than an LLC. You'll likely want to choose a business structure that offers tax benefits while protecting you and your assets if something unexpected happens.
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What is better, PC or PLLC?
In general, we think that the PLLC is the better option if you want flexible taxation options and fewer maintenance requirements, while the professional corporation is a better choice for high-income ownership groups that can take advantage of the corporate tax rate.
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What does PC mean at a law firm?
What does PC mean in a lawyer's title? If you see 'PC' after a lawyer's name, it means they're part of a Professional Corporation. They run their practice as an incorporated entity.
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What are the disadvantages of a PLLC?
Pros and cons of a PLLC More Regulations: With a PLLC, you'll face more regulations and paperwork. ... Limited Availability: Not all states recognize PLLCs, and some professions can't form PLLCs in certain states.
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What is the difference between a professional corporation and a professional limited liability company?
Forming a PLLC involves filing Articles of Organization with the state, and incorporating a PC involves filing Articles of Incorporation. While PLLCs should have an LLC Operating agreement in place, it's not usually required by the state. However, PCs must have bylaws that establish the governing rules of the business.
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What qualifies as a professional corporation?
A professional corporation (abbreviated as PC), also known as a professional service corporation (abbreviated as PSC), is a type of corporation established by state statute that permits owners of certain licensed professions, such as attorneys, architects, engineers, accountants, and dentists, to own shares in a ...
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