We use cookies on this site to enable your digital experience. By continuing to use this site, you are agreeing to our cookie policy. close
Focus On
NEW In-House Counsel | Insurance | Intellectual Property | Immigration | Natural Resources | Real Estate | Tax

Tax treatments of professional corporations: How to change

Wednesday, October 11, 2017 @ 8:47 AM | By David Rotfleisch

This is the last part of a three-article series reviewing the tax implications of different kinds of law firm structures.

Professional corporation (PC)

Professional corporations allow lawyers to enjoy the tax benefits of a small business corporation, although not the limited liability protection. The professional corporation is the most tax efficient structure available for a sole proprietorship or small partnership.

An incorporated law practice enjoys the benefit of the small business deduction. This means that for active business income of up to $500,000, there is a...