Forming a professional entity (PC or PLLC)
A professional corporation (PC) or professional limited liability company (PLLC) is a C corporation, S corporation or limited liability company (LLC) organized to provide professional services in industries that require a state license in order to practice. Some states have other names for professional corporations, such as a professional association (PA) or service corporation (SC)
Who should form a professional corporation?
What services constitute professional services are defined by state law and differ from state to state. Typically they are professions that require a license, such as:
Additionally, a PC corporation or PLLC must typically be organized to solely provide the services of the licensed practitioners.
Features & benefits of PCs and PLLCs
Forming a professional corporation or PLLC involves additional steps, such as:
- Approval of the incorporation by the appropriate state licensing body for the owner’s or owners’ profession
- Signature on the incorporation documents of a licensed professional as the incorporator or organizer
In addition to preparing the incorporation documents and filing them with the appropriate state agency, BizFilings seeks the necessary approvals and addresses any other extra requirements for professional corporations imposed by your intended state of incorporation.
Key Benefits of Professional Corporations
PCs and PLLCs offer many of the same advantages as regular corporations and LLCs. Taxation of PCs can differ from that of C corporations, however. Click on the FAQ tab on this page or the article noted below to learn more about the taxation of PC corporations and professional limited liability companies. Setting Up a Professional Service Business
Professional Corporation Drawbacks
The professional limited liability company (PLLC) entity type is not recognized in all states. To see if your intended state of incorporation allows PLLCs, check the LLC formation information in our state guides. State Guides