What Does P.c. Stand for in Law Firm

PCs do not protect individual professionals from their own misconduct. If a physician is undergoing professional training, a patient can still sue him or her individually if he or she commits medical malpractice. Professionals must purchase malpractice insurance to protect themselves from malpractice lawsuits. A PC usually protects its owners from misconduct by others in the company. For example, if two lawyers jointly own a PC, one is generally not responsible for the mistakes of the other. When choosing the best way to start your business, it`s important to understand the tax implications and other differences between your options. Professional corporations or professional services firms (abbreviated as PC or PSC) are those corporations for which many corporate laws contain special provisions governing the use of the corporate form by licensed professionals such as lawyers, architects, engineers, accountants and physicians. The general category of PC or PSC can be S corporation, C corporation or LLC, but with a subcategorization into PC or PSC. The legal provisions that apply to professional companies generally differ in important respects from those that apply to other companies.

[1] Unlike a traditional business, carrying on business as a professional does not exempt a merchant from personal liability for his own negligence or fault. The main reason professional groups choose to organize as a professional corporation is that, unlike a partnership, an owner is not personally liable for the negligence or misconduct of other owners. In some States, a limited liability company offers the same advantage and should therefore be considered as a possible business entity by professionals setting up a business. In the United States, professional enterprises have two nationalities for diversity purposes, just like ordinary enterprises, namely that they are citizens of (1) the state in which they are incorporated and (2) the state in which they have their principal place of business. This differs from other similar organizations that are not technically « businesses, » such as professional associations, unions, partnerships (including limited partnerships and limited liability companies), and limited liability companies, for which citizenship is based on each member`s place of residence. [3] As a result, diversity jurisdiction in lawsuits involving the professional order is expanded relative to these other forms of corporate organization, thereby expanding the professional corporation`s access to federal courts, which may be beneficial to the firm. The specific requirements of companies vary considerably from state to state. The type of entity you choose is integral to the success of your business. It`s worth taking the time to research and understand the best choice for you.

The decision you make can have long-term effects on your practice, so it`s worth spending time figuring out what`s most logical for your situation. Whichever organizational structure you choose, there must be operational rules for the creation and continuation of business activities. A good source of information on what provisions to include is the Uniform Partnership Act, which has been enacted in all states except Louisiana. At a minimum, your law firm agreement or articles of incorporation should state the following: The letters « PC » after a company name stand for Professional Corporation. Some, but not all, professional companies enjoy the same liability protection as general contractors. Many states, such as Delaware, reserve the term Professional Corporation for licensed professionals such as doctors, accountants, and architects. Each state is subject to its own corporate laws, so specific laws vary when it comes to professional companies. This is an exciting time for your law firm to grow. Once you`ve decided on your business structure and prepared your operating rules, you need an effective strategy to make sure the right customers show up at your doorstep. Let FindLaw Legal Marketing Solutions help you find the clients who best fit your growing practice.

Roger Thorne is a lawyer who started writing freelance in 2003. He has written for publications ranging from MotorHome magazine to Cruising World. Thorne specializes in writing for law firms, websites, and professionals. He holds a Juris Doctor from the University of Kansas. For individual practitioners, however, this benefit doesn`t matter unless they plan to add more professionals at a later date. As a licensed professional starting a solo practice, choosing the right business structure starts with understanding your options. Limited liability companies and professional companies have tax advantages and disadvantages in terms of personal liability protection. Professional corporations may exist as part of a larger and more complicated legal entity; For example, a law firm or a doctor`s office can be organized as a partnership of several or many professional companies. [ref. Professional companies may have a single director or multiple directors. As a general rule, they do not grant directors the same degree of limitation of liability as ordinary commercial companies (cf. LLP).

[2] These companies must identify themselves as professional enterprises by inserting « PC » or « P.C. » after the name of the company. [1] In some states, it is not uncommon to see the name of a law firm or law firm with the letters « PC » behind it. PC stands for Professional Corporation. Like limited liability companies, corporations and other business structures, professional companies are legally recognized companies in some states. A professional business is a product of state laws that contain detailed provisions on what the business can and cannot do. A corporation should have its own articles and agreements that dictate the responsibilities and conduct of the corporation, its directors and shareholders. A PC is much more formal, as operational decisions often require director approval and shareholder votes. One of the main advantages of an LLP or LLC over a PC is flexibility. Each partner has the right to manage the business unit and make decisions regarding day-to-day business operations.

The basic governance structure is a partnership agreement that doesn`t even need to be written. However, individual states have laws that govern certain aspects of the business in the absence of a written agreement. Thus, if there is no written agreement or if the agreement does not address certain matters, the LLP or LLC is subject to the provisions of their states` business codes that fill in the gaps. Unlike other states, California does not allow lawyers to form a limited liability company. Instead, California allows the use of a professional limited liability company (LLP). All other states allow the formation of an LLC or limited liability company (PLLC) for law firms. In the end, there isn`t much difference between an LLP and an LLC. However, shareholders, directors and officers must belong to the same profession. PCs aren`t as popular as they used to be, partly because changes in tax laws and partly because LLCs or PLLCs offer the same limited liability protection as a PC and are easier to use. They eventually gained long-term customers and made big profits.

Your small business is growing and now it`s time to take your practice to the next level. If you choose a limited liability company (LLC); a limited liability company (LLP) or a professional company? Each of these corporate structures offers some protection against liability caused by your company`s employees and colleagues, but this is only one factor among many to consider. Read on to learn more about law firm business structures and which one best suits your growing practice. Typically, PCs must be integrated by a licensed professional in the field where the PC provides services. A professionally established law firm must be established by a licensed lawyer.