What is a professional corporation (P.C.)?

A professional corporation (P.C.) is specifically designed to provide professional services such as legal, medical, or accounting services, and it requires that its shareholders hold the appropriate professional licenses for the services offered by the corporation. This structure allows licensed professionals to operate under a corporate form while maintaining the ethical and regulatory standards set by their respective licensing boards.

In this context, only shareholders who possess the necessary qualifications can participate in the governance and ownership of a professional corporation, ensuring that the organization maintains compliance with professional regulations and standards of practice. This structure protects both the professionals involved and the clients they serve, as it establishes clear accountability and ethical guidelines.

Other choices describe different concepts that do not accurately encompass the definition of a professional corporation, highlighting the distinct nature of option C in representing a business structure specifically related to licensed professional services.