In the legal field, when you see "PC" after a lawyer's name or a law firm's name, it stands for Professional Corporation. This designation signifies a specific business structure adopted by legal professionals.
Understanding the Professional Corporation (PC) Structure
A Professional Corporation is a type of incorporated entity, meaning the law practice operates as a separate legal entity from the individual lawyer(s) who own and run it. This is a common structure for professionals like lawyers, doctors, accountants, and engineers.
Key aspects of a law practice structured as a Professional Corporation include:
- Separate Legal Entity: The PC is legally distinct from its shareholders (the lawyers). This means the corporation itself, rather than the individual lawyers, is responsible for the business's liabilities and obligations.
- Limited Liability: One of the primary benefits of incorporating is the limited liability it offers. While lawyers remain personally liable for their own malpractice, their personal assets are generally protected from the corporation's business debts or liabilities incurred by other members of the corporation.
- Formal Structure: Operating as a PC involves more formal legal and administrative requirements compared to a sole proprietorship or a partnership, including maintaining corporate records, holding annual meetings, and complying with specific state corporate laws.
- Tax Implications: Professional Corporations often provide different tax planning opportunities and benefits compared to unincorporated business structures, such as partnerships or sole proprietorships.
- Perpetual Existence: Unlike a sole proprietorship that dissolves upon the death or retirement of the owner, a Professional Corporation can continue to exist even if there are changes in its ownership or management.
Identifying a Professional Corporation
You will typically see "PC" appearing directly after the lawyer's name or the law firm's name, indicating its corporate status. For example, a lawyer might be listed as "Jane Doe, PC," or a firm might be named "Smith & Jones, PC." This designation informs clients and the public that the practice operates as an incorporated business.
This structure allows lawyers to manage their practice with the organizational and liability benefits typically associated with corporations, while still adhering to the professional and ethical standards required by their respective bar associations.
