Can I form a professional corporation? …...

Groups of certain professionals can form corporations known as professional corporations or professional service corporations (“PC”). The list of professionals covered by professional corporation status differs from state to state; though it typically covers accountants, engineers, physicians and other health care professionals, lawyers, psychologists, social workers, and veterinarians. Typically, these professionals must be organized for the sole purpose of providing a professional service (for example, a law corporation must be made up of licensed attorneys).

In certain states, this is the only incorporation option available for certain professionals, whereas in others, they are given the choice of being either a professional corporation or S or C corporation.

Professional corporations can shield owners from liability. While it can’t protect a professional from his/her own malpractice liability, it can protect against liability from negligence of an associate.

For more information on forming a corporation, contact your Los Angeles CPA today!

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