What is a professional corporation?

A professional corporation is a special type of corporation which some state laws allow for that works like a limited liability partnership - that is, it’s a corporation owned and operated by licensed professionals, such as attorneys, accountants or doctors. With a professional corporation, each owner/shareholder has limited liability with regard to any acts undertaken by other owners or the corporation itself. This is no different from the limited liability that applies to all other corporations. However, where there is a difference is that an owner/shareholder remains personally liable for any of their own misconduct. For example, if one owner commits malpractice and the business subject to some judgment as a result of this, that owner is personally liable to the extent the corporation cannot cover the judgment.