Main Guide: Starting a Business.
A professional corporation (PC) is a corporate entity that is used for a narrow set of licensed professionals - such as lawyers, architects, engineers, accountants, and doctors. Professional corporations differ from traditional corporations because they do not afford their owners limited liability from professional negligence or malpractice claims. However, owners are not liable for the malpractice or negligence of other owners.
Most states require that all shareholders be actively involved in the business, and the PC must be formed solely to provide professional services.