A Professional Corporation (PC) or Professional Limited Liability Company (PLLC) is an entity intended
for individuals needing a state license to practice in their field. The advantages
and entity characteristics are the same between PC’S and PLLC’S as with corporations
Examples of PC’s and PLLC’s
What classifies a business as a Professional Service Business differs based on State
Laws. Here are a few examples of Professional Service Businesses:
- Physical Therapists
Why PC or PLLC is right for my business
State laws dictate whether or not your company is classified as a Professional Service
business. Here are some additional steps to complete when filing for a PC or PLLC:
Getting your state licensing body approved of for the PC or PLLC for the owner’s
or owner’s profession.
Incorporation documents must be signed as an incorporator or organizers by a licensed
Since state guidelines vary, iCorp will file the documents with appropriate state
agencies and address any additional requirements and/or approvals based on your
PC and PLLC Differences
- Professional Service Businesses are typically taxed differently than regular
corporations, imposing a flat tax on all earnings.
- The PLLC entity is not recognized in all states.
How It Works
Now that you have decided a professional corporation best fits your business needs,
here is how it works:
- Select a name and we will check to see if it is available.
- Choose the state where you wish to file your entity.
- Determine whether or not you wish iCorp to acquire your EIN and perform the Registered
- Allocate corporate officers.
These four tasks can all be accomplished by filling out our fast and easy filing
application. The fees associated with each product and service will be listed in
your order summary and throughout the application.
Our online application will track your status as you proceed and will also save
all the information populated page by page. After the application has been submitted
you will receive a confirmation e-mail with your order status and summary.
If we have questions or concerns, we simply give you a follow up call to clarify.
Again, help is only a phone call away. Give one of our knowledgeable representatives
a call to assist you with your order: 1-866-689-3989
What are the differences between Professional Corporations (PC’s) / Professional
Limited Liability Corporations (PLLC’s) and regular Corporations / Limited Liability
The difference between PC’s / PLLC’s and regular C-Corp’s, S-Corp’s and LLC’s is
that PC’S and PLLC’s are organized for the purpose of providing professional services.
State laws determine what classifies a business as a PC or PLLC. Typically, these
professions require a license. Here are some examples of PC’s and PLLC’s: Doctors,
Lawyers, Accountants, Architects, and Engineers.
How are PC’s and PLLC’s Formed?
PC’s and PLLC’s are formed similarly to C-Corp’s, S-Corp’s and LLC’s; by filing
the Articles of Incorporation or the Articles of Organization with the state. However,
with PC’s and PLLC’s, the proper state licensing body must approve the incorporating
documents before filing the entity with the Secretary of State.
What additional steps does it take to file a PC or PLLC?
After the incorporating documents are approved by the state, the signature and license
number of a licensed professional as the incorporator must be filed with the state.
Due to these additional requirements, filing times for PC’s and PLLC’s can be delayed.
Who can be a shareholder or director in a PC or PLLC?
The majority of states restrict who may be a shareholder or director of a PC or
PLLC. For example, some states require more than 50% of the shareholders and directors
to be a licensed professional in the profession in which they are operating. Other
states require all shareholders or directors to be licensed professionals on the
profession in which they are operating.
What Is the SS4/EIN/Tax ID Number?
An EIN (Employee Identification Number) or Federal Tax ID Number is issued by the
IRS to identify your company federally. An EIN is used when filing tax returns,
hiring employees, opening a bank account in the company name, creating a trust or
pension, and is a requirement for LLC and Corporations.
If you are a sole proprietor, your SSN can suffice as an EIN for all official documents
and government forms.
What Is a Registered Agent and Do I Need One?
Almost every state requires a corporation or an LLC to maintain a Registered Agent.
The Registered Agent address accepts legal and official documents including, but
not limited to: franchise tax notices, annual reports, official legal notices (such
as a court summons), and more on your company’s behalf. If a Registered Agent is
not designated, this may infringe on the company’sability to gain access to stet
courts and legally enter into contracts.