Definition of PC Attorney
A PC Attorney, also known as a Professional Corporation Attorney, is a legal professional who has established their law practice as a professional corporation (PC).
The abbreviation “PC” stands for “Professional Corporation” and signifies that the attorney’s practice is a separate legal entity from the attorney themselves. This structure provides several advantages, including limited liability protection for the attorney and the ability to offer employee benefits to staff.
Types of PC Attorneys
PC attorneys specialize in various areas of law and can be classified based on their expertise. Understanding the different types of PC attorneys and their roles can help individuals and organizations choose the right legal representation for their specific needs.
The roles and responsibilities of PC attorneys vary depending on their specialization. Some common types of PC attorneys include:
Corporate Attorneys
- Advise and represent corporations, businesses, and other entities in legal matters.
- Draft and review contracts, negotiate deals, and handle mergers and acquisitions.
- Provide guidance on corporate governance, compliance, and regulatory issues.
Criminal Defense Attorneys
- Represent individuals accused of crimes, ranging from misdemeanors to felonies.
- Investigate cases, negotiate with prosecutors, and present evidence in court.
- Advocate for the rights of their clients and protect their interests throughout the criminal justice process.
Family Law Attorneys
- Handle legal matters related to family relationships, such as divorce, child custody, and adoption.
- Negotiate agreements, represent clients in court, and provide guidance on family law issues.
- Assist individuals in protecting their rights and interests in family-related matters.
Immigration Attorneys
- Represent individuals and families in immigration matters, including visas, green cards, and citizenship.
- Guide clients through the complex immigration process, prepare applications, and represent them in legal proceedings.
- Assist individuals in navigating the legal framework and achieving their immigration goals.
Establishment and Operation of a PC
Establishing a Professional Corporation (PC) for attorneys involves several steps:
1. Choose a name: Select a name that complies with state regulations and clearly identifies the PC’s purpose as a legal entity.
2. File articles of incorporation: Draft and file articles of incorporation with the state’s corporation division, outlining the PC’s purpose, structure, and governing documents.
3. Obtain an employer identification number (EIN): Apply for an EIN from the Internal Revenue Service (IRS) to identify the PC for tax purposes.
4. Create bylaws: Develop bylaws that establish the PC’s internal governance, including rules for shareholder meetings, officer elections, and financial management.
5. Issue stock: Issue shares of stock to the attorneys who will be owners of the PC.
Advantages of operating a PC compared to other business structures include:
* Limited liability: Attorneys are protected from personal liability for the PC’s debts and liabilities.
* Tax benefits: PCs can take advantage of certain tax deductions and credits available to corporations.
* Professional appearance: A PC conveys a professional image and can enhance credibility with clients.
Disadvantages of operating a PC include:
* Administrative costs: Establishing and maintaining a PC can be more expensive than other business structures due to legal and accounting fees.
* Complexity: PCs are subject to more complex legal and regulatory requirements compared to other business structures.
* Limited flexibility: PCs have less flexibility in terms of ownership and profit distribution compared to other business structures.
Ethical Considerations for PC Attorneys
PC Attorneys, like all attorneys, are bound by ethical obligations and responsibilities. These obligations include:
- Maintaining client confidentiality
- Avoiding conflicts of interest
- Providing competent representation
- Charging reasonable fees
- Upholding the integrity of the legal profession
PC Attorneys may face unique ethical dilemmas due to the structure of their practice. For example, a PC Attorney may have a conflict of interest if they represent both the PC and a client of the PC. In such cases, the Attorney must take steps to avoid any actual or perceived conflict of interest.
Resolving Ethical Dilemmas
When faced with an ethical dilemma, PC Attorneys should:
- Consult with their supervising attorney or a more experienced attorney
- Review the relevant ethical rules
- Consider the potential consequences of their actions
- Make a decision that is consistent with their ethical obligations
By following these steps, PC Attorneys can help to ensure that they are acting in an ethical and responsible manner.
Professional Liability for PC Attorneys
PC Attorneys, like all other attorneys, are subject to professional liability for their actions and omissions. Professional liability, also known as legal malpractice, refers to the legal responsibility of an attorney to their clients for any damages caused by their negligent or wrongful conduct.
The types of claims that can be brought against PC Attorneys include breach of contract, negligence, and fraud. Breach of contract claims arise when an attorney fails to fulfill their obligations under the terms of their retainer agreement with a client. Negligence claims arise when an attorney fails to exercise the degree of care and skill that a reasonably prudent attorney would exercise in similar circumstances. Fraud claims arise when an attorney makes false or misleading statements to a client.
The potential consequences of a professional liability claim against a PC Attorney can be significant. An attorney may be ordered to pay damages to the client, including compensatory damages for the client’s losses and punitive damages to punish the attorney for their misconduct. In addition, an attorney may be suspended or disbarred from practicing law.
Risk Management for PC Attorneys
PC Attorneys can take steps to manage their risk of professional liability. These steps include:
- Maintaining adequate professional liability insurance.
- Carefully documenting all client communications and interactions.
- Obtaining written retainer agreements from all clients.
- Supervising and training staff carefully.
- Staying up-to-date on the latest legal developments.
