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.
Mar 30, 2020 · 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.
PC Overview. As the name suggests, only "professionals" can form a PC. A professional, in this context, refers to someone who engages in a business that requires a professional license, such as a doctor, lawyer, or architect. In contrast to LLCs and LLPs, PCs offer owners limited liability protection with the exception of malpractice claims.
An abbreviation for professional corporation, which is a special corporation established by professionals, such as physicians, accountants, or, in some states, attorneys, who practice together. In most jurisdictions, a professional corporation may be organized by professionals who render a personal service to the public that requires a license and that, before proper statutory …
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.
"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.
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.
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.
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, ...
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.
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.
Until recently, PCs differed from corporations in that PCs had a 35-percent federal tax rate whereas corporations had a graduated tax scheme. In November 2017, Congress passed the Tax Cuts and Jobs Act of 2017 that applied a flat tax rate to all corporate entities.
That means that members' personal assets are legally distinct from the LLC's assets. So, in the event someone sues the LLC, member assets are shielded from the proceeds of the lawsuit.
An LLC also provides members with pass-through taxation, which means that the LLC does not pay taxes on profits earned. Instead, profits "pass through" to the members, who pay personal income taxes on profits distributed by the LLC.
Moreover, PCs do not have a pass-through taxation scheme and are instead taxed as corporations—in other words, they are subject to double taxation.
Another advantage is that an LLC has minimal paperwork requirements, which makes launching an LLC rather easy. An LLC can have multiple members or as few as one member. As such, it is advantageous for someone with a small home-based business to incorporate as an LLC.
As the name suggests, only "professionals" can form a PC. A professional, in this context, refers to someone who engages in a business that requires a professional license, such as a doctor, lawyer, or architect.
As the name suggests, an LLP is a partnership, which means, in contrast to an LLC, that there is no flexibility for creating centralized management.