5 min. read
Under the tax code, groups of professionals, like chiropractors, may form and operate a special type of entity called a Professional Corporation (PC) or Professional Association (PA), depending on the state in which it is organized. The PC is a separate entity from the owners, similar to a C-Corporation, but the tax rate is less, and the shareholders usually take out all or most of the profits as tax-deductible salaries, bonuses, or fringe benefits.
The benefit to this type of association is it protects individual owners from the negligence of an associate, and it can be a useful backup to malpractice insurance. This type of legal form is not advisable. For a sole owner, check with a tax advisor if you’re considering practicing with other individuals.