Thursday, May 20, 2010

What are the advantages of a Professional Corporation?

A major advantage of a Professional Corporation is the limited liability the corporate entity affords its shareholders. Typically, shareholders are not legally responsible for the debts and obligation of the corporation, unless the shareholder has specifically agreed to assume personal responsibility for the corporate debts. This 'limited liability' benefit is generally limited by State statute, as to Professional Corporations (PC), in order to prevent a 'licensed professional' from avoiding liability for 'malpractice'.

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