Article Date:
January 2012

Word Count:



Professional Corporation as a C Corporation Is a Personal Service Corporation



I have a client who is a cardiologist who receives income from hospital referrals but is paid primarily by insurance companies. Would this be considered personal service income and preclude him from operating as a C corporation? (M.S., Philadelphia, Pa.)




Yes, it could be personal service income, but even if it is, it doesn’t preclude him from operating as a C corporation.


Why Incorporate?


First, why does your client want to incorporate?


Health care professionals usually incorporate to limit their liability. However, the limited liability afforded to professional corporations is not as great as your client may think.


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