Are you trying to decide if establishing your business as a professional corporation is right for you? Are you finding it difficult to determine all the tax ramifications associated in selecting your entity type? Let the business formation attorneys of Byron Carlson Petri & Kalb, LLC, assist you with your decision. Our professional corporations attorneys have been helping our business clients determine the right entity structures for their organizations for years.
When you contact us to discuss establishing your business, we discuss all of your goals, interests, plans and history in order to help you choose an entity structure that is right for you. We know the rules, regulations, taxation and other implications of each structural type and can find you the best fit possible. Our Edwardsville office is available at 618-307-4054.
What Is a Professional Corporation?
A Professional corporation is typically reserved for a service oriented business, such as doctor, attorney or consultant. The ownership test requires that the business’ stock by owned by qualified people who either work or used to work for the corporation. The statutes involved in these types of entities are unique, and allow for owners to make special provisions or regulations depending upon the type of business in which you are engaged. A professional corporation involving engineers will have very different specifications than that of an accountant.
This type of entity could shield you and your partners from a host of liabilities that other entity formations cannot. For example, as a state-licensed professional you are subject to certain obligations as a practitioner, but as a business owner you can protect your entity should any mistakes be made or issues arise from your practice. This means that in a traditional LLC, you and your business partners may be sued both personally and professionally, but under a professional corporation, only the corporation takes on these debts and the individual practitioner the losses they caused.
In addition to liability protection, professional corporations also offer tax incentives and often qualify for lower income tax rates and insurance premiums. There are a number of special requirements for a professional corporation in order to receive these benefits, and different laws apply in different states. If you are looking to form a professional corporation in Illinois or Missouri, contact our professional corporation lawyers. We understand your business needs are unique. We take time with each client to fully understand what their goals for their business will be. Call us now to set up your new entity at 618-307-4054.
- Christopher W. Byron
- Jillian M. Clark
- Meredith L. Eichholz, Of Counsel