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 is an associate attorney at Dunnam & Dunnam, L.L.P.
Carolina G. Truesdale graduated from Texas Tech University School of Law, Cum Laude, where she discovered her passion for serving families during difficult times.
Mason Dunnam won his first jury trial the day after becoming licensed to practice law. He became a lawyer to fight for the little guy.
Eleeza Johnson has been a member of Dunnam & Dunnam since 2015 and is currently designated as Of Counsel.
Andrea Michelle Mehta became a lawyer to help people navigate the legal world. She loves her work and the people.
Gerald Ray Villarrial has an important goal – to be remembered as someone who cared about people and changed lives through his skill as an attorney.
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 Waco.
Merrilee Harmon is a Family Law specialist, Board Certified by the Texas Board of Legal Specialization since 1985.
Vance Dunnam has 60 years of experience as a lawyer in Waco, Texas, handling all types of cases in both the office and the courtroom.
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.
