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S Corps are referred to as "Professional Corporations". Their intended purpose was for Doctors, Lawyers, Consultants etc. and other people looking for liability protection for services they provide. I believe in some states they even restrict the number of shareholders.

Take that for what it's worth.

A Professional Corporation is different from an S-Corporation. The S-Corporation is an IRS classification of a regular corporation, while Professional Corporations are a different type of corporation created at the state level. Professional Corporation owners are limited to the profession it is aimed at. So they must be, for example, all lawyers or all doctors. They are generally used for professions that require a state license.

A PC is actually different from an S Corp! I haven't read the article yet but felt the need to reply to this. States also don't have S-corps, they are a construct of the IRS and an LLC or a C-corp can elect to be taxed as an S-corp but it doesn't change their legal entity form. The shareholder limit is 100 and there are a few other nuances but the general idea is that you can elect for your corporation to be taxed as a flow through so as to avoid double taxation.

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