Professional Corporations are business entities which are constituted under different legal provisions as compared to regular businesses. Usually, these include corporations which provide services such as accounting, engineering, architecture, law and medicine. The legal regulations that define how such corporations should be started and run usually differ compared to other LLCs, and can also differ depending on the state involved.
Usually, these corporations can have single or multiple directors. They are also legally required to identify themselves as professional corporations. This is usually done by affixing the abbreviation PC after their names in legal and other documents. It is possible to find professional corporations being part of larger organizations.
The fact that different rules apply when starting a professional corporation means that when one is in a position where they need to do so, it would be wise to work with an attorney from the word go. The attorneys’ role would be to find out the state and federal provisions relating to the type of company that one is keen on starting, and then making sure that they conform to all these provisions.
In addition to the state and federal business regulations, professional corporations may also be governed by other laws that are specific to the type of company being started. For instance, physicians who start professional corporations will need to adhere to laws which seek to protect clients’ rights, privacy and other privileges in the medical profession.
The complexity of all the rules and regulations that a professional corporation needs to adhere to can be confounding, and can lead to many mistakes when not adhered to either during incorporation or when the business is running. This is why attorneys tasked with handling such matters have to be experienced in this specific field.