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Professional Corporation
ОглавлениеA Professional Corporation, also known as “APC” or “PC” was created to allow certain kinds of professionals such as lawyers, doctors, accountants, and engineers to do business as a Professional Corporation. In each state, specific types of professionals are allowed, and in some states required, to form a Professional Corporation. For example, in California, professionals are required to form a Professional Corporation and therefore cannot be an LLC. Professional Corporations are different from the C or S Corporations because all shareholders in a Professional Corporation must be members of the same profession involved in the same business. For example, a group of lawyers can form a Professional Corporation if their business is to practice law. While there is some limitation on liability surrounding the actions of each partner, the professionals in the firm may not be relieved of liability of their own professional negligence or malpractice. This is the main reason professionals form this type of corporation. They can enjoy sharing management responsibilities and profits without exposing themselves to malpractice actions against the other owners.