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Professional corporations provide a limit on the owners personal liability for business debts and claims. Incorporating cant protect a professional against liability for his or her negligence or malpractice, but it can protect against liability for the negligence or malpractice of an associate.
Professional corporations provide a limit on the owners personal liability for business debts and claims. Incorporating cant protect a professional against liability for his or her negligence or malpractice, but it can protect against liability for the negligence or malpractice of an associate.
While forming a PLLC (professional limited liability company) is required in some states, Maryland doesnt actually recognize PLLCs. Licensed professionals in the state can, however, form a regular LLC or a Professional Corporation.
In Maryland, a corporation is only allowed to offer professional services (i.e., be a professional corporation) if every share of stock is owned by a person licensed for the profession.
Professional corporations offer most of the same advantages as a regular corporation: personal asset protection, the ability to issue stock, and tax advantages. The downsides to a professional corporation are also the same as those of a regular corporation, such as the time and money spent on corporate formalities.
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Definition of professional corporation : a corporation organized by one or more licensed individuals (such as a doctor or lawyer) especially for the purpose of providing professional services and obtaining tax advantages.
While traditional corporations their professional corporations are mostly similar, there is one key difference: with professional corporations (such as C Corps), owners are protected from legal claims made against their business, unless the claim was a result of the owners own mistake.
Professional corporations may exist as part of a larger, more complicated, legal entity; for example, a law firm or medical practice might be organized as a partnership of several or many professional corporations.
In Maryland, a corporation is only allowed to offer professional services (i.e., be a professional corporation) if every share of stock is owned by a person licensed for the profession.
There are many benefits associated with incorporating a professional corporation, including lower corporate tax rates, investment and tax strategies, and planning for retirement.

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