What is the primary characteristic of a Professional Corporation?

The primary characteristic of a Professional Corporation is that it consists of just one profession with limited liability. This means that the entity is organized specifically for the practice of a particular profession—such as law, medicine, or accounting—allowing the professionals within that field to limit their personal liability for the debts and obligations of the corporation.

This structure is designed to protect individual members from personal liability for malpractice claims or other liabilities incurred by the corporation, thereby encouraging collaboration among professionals while maintaining the integrity and standards of their specific professions.

Other options do not adequately represent the nature of a Professional Corporation. The idea of having multiple professions contradicts the concept of a Professional Corporation being dedicated to a single profession. Unlimited liability is inaccurate because one of the key features of such corporations is limited liability for its members, distinguishing it from a general partnership or sole proprietorship. Finally, being solely for non-profit activities misrepresents the typical practice, as many Professional Corporations operate on a for-profit basis while still upholding professional standards.