What are PCs and PLLCs?
If you are considering starting a business, it is a good idea to get in touch with a legal representative to ensure that you do everything properly. One of the first decisions you need to make as a prospective business owner is whether your business will be classified as a Professional Corporation (PC) or a Professional Limited Liability Company (PLLC). The differences between the two company types are often subtle, but they can determine the direction you take in the years to follow. Scheduling a consultation with Tobin, O'Connor and Ewing will ensure that you start off on the right track.
What is the Difference Between PCs and PLLCs?
The main difference between the two types of companies is that a professional corporation may only provide a single professional service. "Professional services" are defined in Washington, DC as any services that require a license to practice legally. PCs tend to be simpler than PLLCs, with fewer procedural issues and more allowances for solo control over business decisions and operations.
By contrast, PLLCs have more rules, but they also allow for a broader diversity of services, products and workers within the company. They tend to be used for businesses with a broader, more expansive scope, and they are necessary if you are planning to provide a service for which there are no Washington, DC licensing requirements. PLLCs also offer more legal protection against malpractice lawsuits.
When it comes to tax purposes, PCs operate like C corporations, for which company net profits are taxed at the corporate tax rate. By contrast, PLLCs are more like S corporations, which tax company profits as personal income of the LLC owners.
To discuss how we may help you achieve your legal objectives, contact Tobin, O’Connor & Ewing. We can be your best resource, and we look forward to serving you.