What are the disadvantages of a Professional Corporation?

The primary disadvantage to a professional corporation is the potential for "double taxation". This occurs when the 'Earnings and Profits' of a professional corporation are distributed to shareholders as 'Dividends'. These 'Earnings and Profits' were taxed first as 'Income' earned by the corporation, and again taxed as 'Income' to the shareholder when received as 'Dividends'. The potential for "double taxation" can be minimized, however, since the corporation is permitted to deduct a very broad range of business expenses.

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Source: Business Document Filing in All 50 States.