Professional Corporations are entities formed for use by licensed professionals such as attorneys, accountants, doctors and engineers. While professional corporations are structured as and operate similar to that of an S or C Corporation the professional corporation does not limit the liability of the licensed professional for their own malpractice or negligence when practicing their licensed profession. However, it does limit the liability for one licensed professional from the malpractice or negligence of other licensed professionals within the company.
Most states allow for the formation of professional corporations and typically require them to identify themselves as professional entities by using a professional corporate indicator such as “P.C.”, “PC”, “P.A.” or “PA” as opposed to the standard “Inc”, “Corp” or “Ltd”. Further some states require that the company obtain consent from the agency that issues the license of the licensed professional prior to filing with the Department of State.