What are the advantages of a Professional Corporation or PLLC?
A primary advantage of a Professional Corporation is the limited liability the corporate entity affords its shareholders. Typically, shareholders are not liable for the debts and obligations 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 and PLLCs, in order to prevent a ‘licensed professional’ from avoiding liability for ‘malpractice’. In addition, the PLLC receives the ‘flow-through’ tax treatment typical of a partnership.
