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...
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...
