Welcome to our weekly business basics post! This week we decided to explore a specialized legal entity called a professional corporation (PC). Now most of those who know a little bit about corporate law probably know that there are two, main types of corporations – S-Corps, and C-Corps. But in addition to these, there are a few other specialized structures that are important to keep under the belt of a small business, like the professional corporation.
So what is a professional corporation?
The process of starting a business is usually associated with that of accumulating large sums for start-up capital and marketing campaigns. Businesses have now moved away from that sort of thinking and have found easier and more innovative ways to get their companies up and running without having to find an outrageous sum of money. This calls for a total change in the mindset of the budding entrepreneur and a level of commitment to the process.
Starting a Business with Zero Capital
This will be a challenging task with many hurdles to jump, but once you are dedicated to the process you will make it. Here are a few tips.
If you’re running a small start-up business with a partner, chances are this partner is a good friend, a colleague you trust or maybe even your spouse.
During the early phases of a start-up it is even more so important to put everything in writing. You are laying the foundations to what may hopefully grow into a solid corporation. Many will feel the relationship with the chosen partner is strong enough to withstand any potential disagreement. Continue reading
For the last installment in our series on the tax treatment of entity types we’re going to cover the Partnership. If you’ve been keeping up with our posts, this will seem eerily familiar. Why? Because the LLC is typically treated just like a Partnership!
The four considerations we’ve been covering are:
- Pass through of gains
- Pass through of losses
- Transfer of assets to the entity, and
- Transfer of assets from the entity