What is a Washington professional service corporation?

A professional corporation is an entity through which licensed professionals provide professional services. While anyone can incorporate and form a regular corporation, in general, only shareholders who are licensed to provide professional services are permitted to form a professional corporation. RCW 18.100. 060.

Is a PC a personal service corporation?

The terms professional corporation (PC) and personal service corporation (PSC) are often confused. Both are corporations and both are owned by professionals such as attorneys, CPAs, architects, doctors, and others. A PC is a corporation composed of specific types of professionals, set up according to state law.

What is a service corporation?

A personal service corporation is a corporation that is created to provide personal services to individuals or groups. Such services span a wide variety of professional business endeavors as specified by the Internal Revenue Service (IRS) (see below).

How do I serve a corporation in Washington state?

To serve process on a Washington corporation, you have to provide a copy of the summons, personal injury complaint, and case setting schedule. In this respect, it is just like serving an individual defendant. Who you serve, however, is different. RCW 4.28.

What does PS mean for lawyers?

“P.S.” means the attorney is claiming to be a professional service corporation.

Can an S corp be a personal service corporation?

Conversion of C Corp to S Corp A personal service corporation can elect taxation as an S corporation, which allows the owners of the business to report their portion of profits and losses on their personal income tax return.

What benefits is a personal service corporation?

A major advantage to owning a personal service corporation is the benefit of limited liability the structure provides. If a company structured as a sole proprietorship fails to pay a vendor for services rendered, the owner is personally responsible for the debt.

Who qualifies as a personal service corporation?

For a corporation to be considered a personal service corporation by the IRS, the employee/owner must perform at least 20% of the personal services themselves, and must also own at least 10% of the outstanding stock in the testing period.

What is the benefit of a personal service corporation?

There are benefits as a personal service corporation, including better tax rates and more control for shareholders, who also contribute their expertise to the business. Because there are significant tax advantages, many well paid professionals organize these unique types of C-Corporations.

How much does it cost to form a corporation in Washington State?

How much does it cost to form a corporation in Washington? You can register your business name with the Washington Secretary of State for $30. To file your Articles of Incorporation, the Washington Secretary of State charges a filing fee of $180 if filed by mail and $200 for online filing..

How do you serve a summons in Washington state?

(1) The summons must be signed and dated by the plaintiff or the plaintiff’s attorney, and directed to the defendant requiring the defendant to defend the action and to serve a copy of the defendant’s appearance or defense on the person whose name is signed on the summons.