Starting a veterinary clinic involves more than finding the right location or investing in medical equipment—you also need to decide how to structure your business. One of the most common questions veterinarians ask when starting their own practice is whether they need to form a Professional Corporation (PC).
In this blog, Mahan Law will explain what a PC is, how it compares to other business structures, and whether forming one makes sense for your veterinary practice.
What Is a Professional Corporation (PC)?
A Professional Corporation is a type of corporate entity specifically designed for licensed professionals, such as veterinarians, doctors, dentists, and lawyers. Many states require certain types of professional services to be delivered through a PC or similar structure, like a Professional Limited Liability Company (PLLC).
A PC must generally be owned by individuals licensed to perform the services the business provides. That means only licensed veterinarians can be shareholders or officers in a veterinary PC.
Why Choose a PC for Your Vet Clinic?
Forming a PC can offer several advantages to veterinarians launching their own clinic:
Liability Protection
A PC provides a layer of personal liability protection. While it doesn’t shield you from malpractice claims (you’re still responsible for your own professional conduct), it does protect your personal assets from business debts and contractual liabilities of the clinic.
This is a key reason why many veterinarians opt for a PC over a sole proprietorship or general partnership.
Tax Benefits
Depending on your state and how the PC is taxed, you may benefit from certain tax advantages, particularly if you elect to have the PC taxed as an S corporation. This can allow you to split income between salary and distributions, potentially reducing self-employment taxes.
That said, taxation of PCs varies by jurisdiction and circumstance, so it’s essential to consult a tax advisor or attorney who understands veterinary practice law.
Professional Credibility
Clients and vendors often take your business more seriously when it’s structured as a formal entity. A PC provides your clinic with a level of professionalism and structure that reflects a long-term commitment and credibility.
Do You Have to Form a PC?
Whether you must form a PC depends largely on your state’s laws. Some states require licensed professionals to operate under a PC or PLLC. Others allow sole proprietorships or general LLCs, but may restrict the use of professional titles or limit liability protections.
States that require or strongly encourage a PC or similar structure for veterinary practices include:
- California
- New York
- Texas
- Illinois
- Florida (under certain circumstances)
Before choosing a business structure, it’s essential to check your state’s veterinary board regulations and corporate code. Failing to comply could result in regulatory issues or limit your ability to operate legally.
PC vs. PLLC: What’s the Difference?
In some states, you may have the option of forming a Professional Limited Liability Company (PLLC) instead of a PC. While both are designed for licensed professionals, the difference comes down to how the entity is taxed and managed:
- A PC is typically managed like a traditional corporation, with officers and shareholders.
- A PLLC is managed like an LLC, with members instead of shareholders and fewer formalities.
Both structures offer similar liability protections, but one may offer more flexibility or tax advantages depending on your situation. Choosing between a PC and PLLC often comes down to state law and your business goals.
When Should You Form Your PC?
If you’ve decided that a PC is the right structure for your clinic, it’s best to establish it before you begin operations. Forming your entity early allows you to:
- Open bank accounts in the business’s name
- Sign leases and contracts under the corporation
- Obtain proper licenses and permits
- Start building business credit
- Avoid personal liability for pre-formation activities
It also makes it easier to bring on partners or investors later, if that’s part of your long-term vision.
How Mahan Law Can Help
Starting your own veterinary clinic is an exciting but complex process. Choosing the right legal structure is just one of many decisions you’ll need to make, but it’s one of the most important.
At Mahan Law, we help veterinarians across the country start and grow successful practices. We can assess your goals, review your state’s laws, and handle all the filings required to form a PC or other appropriate business entity. Our goal is to help you launch with confidence, knowing your clinic is built on a solid legal foundation.
Whether you’re just starting out or restructuring an existing business, we’re here to guide you every step of the way. Call today for a free consultation.