Sarita Garg's Legal Blog

With the expansion of our firm into Long Beach, California and also into the Southwest Houston area, we  have now formed, what is called a PC.  PC stands for Professional Corporation, which is just a different type of entity.  We were previously an LLC, which stands for Limited Liability Company.  You may be wondering what is the difference between the two, and why does it even matter?  Well, in any kind of business, whether it is a law firm, a medical practice, convenience store, hotel, etc., will be classified as some type of entity.  It could be a sole proprietorship, which essentially means, that there is only one person who solely owns the company.  Or, you could form a partnership, which generally involves two or more individuals.  Third, an entity could be classified as a Limited Liability Company ( also called an LLC), which is essentially a combination of a partnership and a corporation.  Of course, the fourth category includes corporations, which are whole new ball game.  Corporations are usually larger entities, and there are many formalities and state requirements that have to be satisfied before a corporation is legally operating.  Professional Corporations (PCs) are just corporations that are entities in specific professions, such as law firms, medical practices, accounting firms, engineering firms, etc.

The difference between all of these entities is that depending on what type of business you are opening, and what your goals are, every entity has different tax consequences, as well as different outcomes with regards to liability.  If you are interested in forming a company, and are unsure which type of entity you should form, you should contact a Smith & Garg Business Attorney to find out your options.