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PROFESSIONAL CORPORATION (PC)

A special type of corporation that is authorized by state law which allows a short list of licensed professions to obtain some limited liability (such as lawyers, doctors, accountants, architects and some health care providers.) A PC does not absolve a professional member for personal liability due to their own negligence or malpractice but it does limit the liability of the other member professionals. In contrast, a general partnership would make every member liable for the acts of other partners. Some states also offer Limited Liability Partnerships (LLP) which provide better coverage in such situations.

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