Is a PA an Attorney?

A PA (professional corporation) is not an attorney, to put it simply. Professionals can incorporate their practices using a PA, a sort of legal entity that includes accountants, doctors, lawyers, and others. There are several advantages to incorporating as a PA, including limited liability protection and tax advantages.

The incorporation as a PA does not, however, grant a lawyer the same legal privileges and rights as an attorney, and this is a crucial distinction to make. A person needs to pass the bar exam and obtain a license from the state they want to practice law in in order to be able to practice law. A lawyer may be shielded from personal liability by incorporating as a PA, but this does not give them the authority to practice law without the required licenses.

However, there are several drawbacks to incorporating as a PA. The expense and difficulty involved in establishing and running a company are two of the biggest disadvantages. In order to retain the corporation’s legal standing, other legal criteria must be fulfilled, such as filing yearly reports and holding regular meetings.

There are several standards that must be fulfilled in order to incorporate as a PA. These differ from state to state, but generally speaking they involve submitting articles of incorporation to the state and paying incorporation costs. The corporation must also adhere to specific laws and regulations about how it should be run, as well as have a board of directors and officials.

Creating a S corporation is an additional option for incorporation. S corporations offer limited liability protection and tax benefits, much like PAs do. However, compared to PAs, they are typically less expensive to set up and maintain. S corporations also don’t need to have regular meetings and are subject to fewer other legal obligations.

Creating a S corporation is often less expensive than creating a PA, even though the cost varies by state and the intricacy of the corporation. For instance, in Pennsylvania, incorporating a S corporation costs $125, while incorporating a PA costs $125 + $200 for registration.

To sum up, incorporating as a PA differs from becoming an attorney. Even though it might provide some advantages, such limited liability protection and tax benefits, it does not give a person the right to practice law without the necessary licensing. Additionally, there are disadvantages to incorporation, such as the expense and difficulty of establishing and running a corporation. However, there are other options that can be less expensive and simpler to handle, like setting up a S corporation.