A “professional corporation” (“PC”) a corporation that is only available to members of certain professions. In Michigan, doctors and lawyers can only form PCs instead of standard corporations. Several other professions, such as accountants, *can* form PCs, but there is little reason to use a PC unless required.

PCs differ from corporations in that the shareholders of a PC are personally liable for their own malpractice – they cannot use the corporation’s limited liability to personally avoid malpractice debt. That said, shareholders of a PC generally avoid personal liability for other shareholders’ malpractice debts, as well as non-malpractice business debts (such as loans, slip and fall liabilities, etc.).