A Professional Corporation (PC) is a legal structure that dentists and other licensed professionals can choose to operate under. It is essentially a corporation that is specifically designed to provide professional services. When you see “PC” after a dentist’s name, it indicates that they are practicing as a Professional Corporation.
One of the main reasons a dentist may choose to operate as a PC is for liability protection. By forming a PC, the dentist’s personal assets are generally shielded from any legal claims or debts incurred by the corporation. This can provide a layer of protection for the dentist’s personal finances and assets.
Another advantage of operating as a PC is the ability to take advantage of certain tax benefits. A PC can deduct various business expenses, such as equipment purchases, office rent, and employee salaries, which can help lower the overall tax liability for the dentist. Additionally, a PC can offer the dentist certain retirement benefits, such as a 401(k) plan, which can help with long-term financial planning.
Operating as a PC also allows dentists to share ownership and management responsibilities with other professionals. This can be beneficial in terms of sharing the financial burden, as well as leveraging the expertise and skills of other professionals within the corporation. For example, a dentist may form a PC with other dental specialists, such as orthodontists or oral surgeons, to create a comprehensive dental practice that offers a wider range of services to patients.
In my own experience, I have seen dentists choose to operate as a PC to provide a more professional image to their patients. Being a part of a Professional Corporation can convey a sense of trust and credibility to patients, as it signifies that the dentist is operating within a regulated and structured business entity.
Operating as a Professional Corporation can offer dentists various advantages, such as liability protection, tax benefits, and the ability to collaborate with other professionals. It is important for dentists to consult with a legal and financial professional to fully understand the implications and benefits of operating as a PC, as the requirements and regulations may vary depending on the jurisdiction and the specific profession.