A Professional Corporation is a corporation organized for the sole purpose of a professional service. The general category of the PC or PSC can be as S-corporation or C-corporation. The professional service referred to by the law is any personal service that requires a license in Texas. Classic examples of “professional service” providers are architects, attorneys, CPAs, dentists, physicians, and veterinarians. Except for the obligation that directors and officers of a PC must be licensed professionals, the rules regarding the governance of a PC are much like those that apply to non-professional corporations. The corporate form usually insulates its owner from liability. But a professional corporation does not protect its owners from liability for malpractice.
The federal income tax law provides a unique problem for some PCs. If the IRS determines that a PC is a “personal services corporation,” it is taxed differently than other corporations. The income tax rate for a PC determined to be a personal services corporation is a flat 35 percent, which is less favorable than the graduated tax rates generally applied to corporations. The possibility of having this tax rate applied makes forming a PC undesirable for most licensed professionals.
If you are evaluating what entities for your practice, contact an experienced Waco business lawyer at 254-753-6437 to discuss forming a professional corporation.
HUNTER SLOCUM Hunter Slocum joined Dunnam & Dunnam in 2022 and has quickly become one of more active young lawyers at the McLennan County Courthouse.
CAROLINA TRUESDALE Carolina Truesdale graduated Cum Laude from Texas Tech University School of Law. She has had a lifetime passion for serving families during challenging
MASON DUNNAM Mason Dunnam won his first jury trial the day after becoming licensed to practice law. Since that time, he has become one of
ELEEZA JOHNSON Eleeza Johnson joined Dunnam & Dunnam in 2015, during which time she has worked to provide successful results for her clients in some
ANDREA MICHELLE MEHTA Andrea Michelle Mehta became a lawyer to help people navigate the legal world. Working alongside her colleagues and with clients is one
GERALD R. VILLARRIAL Gerald Ray Villarrial has an important goal – to be remembered as someone who cared about people and changed lives through his
JIM DUNNAM Jim Dunnam is a Board Certified Specialist in both Civil Trial Law and Family Law. Jim was born and has spent his entire life in
MERRILEE L. HARMON Merrilee L. Harmon became a lawyer to advocate for others in the Waco community. Her compassion, drive and experience are proven through
VANCE DUNNAM Vance Dunnam’s 70-year career was a testament to his unyielding commitment to his clients and passion for the law. He practiced law until he passed away at
Copyright © Dunnam & Dunnam, L.L.P. All Rights Reserved. Prior results do not guarantee a similar outcome. Dunnam & Dunnam LLP maintains this website to provide you with general information concerning itself and its attorneys, as well as to facilitate communications with persons and entities possibly desiring to establish an attorney-client relationship with a law firm or an attorney. Information provided by and through this website does not create any kind of attorney-client relationship with Dunnam & Dunnam or any of its attorneys and, furthermore, does not constitute and should not to be relied upon by you as any kind of legal advice or service by Dunnam & Dunnam or any of its attorneys. Dunnam & Dunnam L.L.P. assumes no liability for the use or interpretation of information contained herein. This publication is provided “AS IS” WITHOUT WARRANTY OF ANY KIND, EITHER EXPRESSED OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR NON-INFRINGEMENT.