Sample Corporate Records for an Oregon Professional Corporation

A professional corporation is a variation of the corporate form available to entrepreneurs who provide professional servicessuch as doctors, lawyers, accountants, consultants, and architects.In a professional corporation, the owners perform services for the business as employees.

With limited exceptions, a business that renders professional services cannot operate as a Limited Liability Company (LLC). Professional services are those that require licensing, registration, or certification under the Business and Professions Code.

Taxation of Professional Corporations The professional corporation is taxed at a flat rate of 21%, instead of a graduated scale. The taxation rate is similar to the flat tax rate imposed on US resident corporations by the IRS.

A professional corporation is a variation of the corporate form available to entrepreneurs who provide professional servicessuch as doctors, lawyers, accountants, consultants, and architects.In a professional corporation, the owners perform services for the business as employees.

Professional corporations or professional service corporation (abbreviated as PC or PSC) are those corporate entities for which many corporation statutes make special provision, regulating the use of the corporate form by licensed professionals such as attorneys, architects, engineers, public accountants and physicians

Professional Corporation Taxes A PC must file a professional corporation tax return and pay taxes on its earnings.PCs are subject to a 35% flat federal tax rate on their corporate earnings, which can be a disadvantage since C corporations are taxed at 15 to 34% for their earnings below $100,000.

Most importantly, a professional corporation is classified as a regular or "C" corporation by the Internal Revenue Service. The corporation is considered a taxpayer under Subchapter C of the tax code and must file an annual federal income tax return and pay taxes on net income at a corporate tax rate.

C Corps vs. While traditional corporations their professional corporations are mostly similar, there is one key difference: with professional corporations (such as C Corps), owners are protected from legal claims made against their business, unless the claim was a result of the owner's own mistake.

A professional corporation is one that only performs services in one, single profession. It is a specific type of corporation for professionals like doctors, lawyers, accountants, etc. The professional is able to form a corporation, but the professional remains liable for his or her own actions.