“PC” stands for “professional corporation”. Many law firms choose to be formed as professional corporations, instead of as partnerships, because the corporate structure provides some protections to the shareholders against personal liability for the acts and debts of the business. Although PCs don’t offer the level of personal liability protection of S corps or LLCs, this structure does protect owners from malpractice claims filed against other associates. PCs must usually be approved by the state agency that licenses the professionals. Also, PCs will not protect you against malpractice suits, but will eliminate your liability for claims directed at your associates (see S Corp Vs. Professional Corp Vs. LLC).
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