[startupcfo]

The textbook states that professionals like lawyers or IT consultants can use a PSC and get a 35% tax rate.

Why would someone use this structure instead of a C-Corp?

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[tuanxn]

You don't get to elect to be a personal service corporation. If a group of lawyers, IT consultants, or any individuals who provide professional services get together to form a C-corp, then their C-corp will automatically be a personal service corporation and be subject to the flat 35% tax rate.

I think the information you read simply stated that the professionals mentioned could form a C-corp that would be categorized as a personal service corporation. In contrast to other options like a partnership, LLC, S-corp, etc.

[Author]

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