How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask TexLaw Your Own Question
TexLaw, Attorney
Category: Business Law
Satisfied Customers: 4430
Experience:  Internationational Commercial Attorney
Type Your Business Law Question Here...
TexLaw is online now
A new question is answered every 9 seconds

I plan to set up the company as professinal corporation type.

This answer was rated:

I plan to set up the company as professinal corporation type. And I apply for EIN number on line. I chose corporations and then several type displayed on the list as follows : Corporaiton, S corporaiton, personal service corpration etc. There is no professinal corporation type. which one shoud be chosen for professinal corporation ?

Thank you for your question. First, a professional corporation is a reserved corporation form for attorneys, accountants, doctors, and other licensed professionals. I want to make sure you understand that going forward.

However, a professional corporation (a P.C.) is simply a corporation. So, when you are making the selection for the EIN, you should just select corporation, unless you have elected to be a subchapter S corporation (which means that you get taxed on the individual level for all income that the company makes).

Usually, it is a good idea to actually incorporate the business with the state before obtaining the EIN.

Please let me know if you have further questions on this subject.

Customer: replied 4 years ago.

You have chosen Corporations.

Read the descriptions below and choose the type for which you are applying.

A corporation is a person or group of people who establish a legal entity by filing articles of incorporation with the state's secretary of state granting it certain legal powers, rights, privileges, and liabilities.

The income of an S corporation generally is taxed to the shareholders of the corporation rather than to the corporation itself. However, an S corporation may still owe tax on certain income.

A personal service corporation involves services in the fields of health, law, engineering, architecture, accounting, actuarial science, performing arts, or consulting.

** I think professional corporation seems to be personal service corporation type. would you confirm it?
What kind of business are going to operate?
Customer: replied 4 years ago.

it will be accounting firm

Thank you for your response. Yes, pick the personal service corporation choice.
TexLaw and 2 other Business Law Specialists are ready to help you