What 'Professional Corporation' means in NEO's name

In Ontario, regulated professionals such as paralegals, lawyers, accountants and doctors can practise through a professional corporation if their regulator allows it. The words "Professional Corporation" must appear in the name.

The rules

• The corporation's shareholders must be licensees of the profession (with limited exceptions set by law).
• The Law Society must issue a certificate of authorization before the corporation provides legal services.
• The corporation is bound by the same professional rules as the paralegal who practises through it.

What it doesn't change

Under Ontario's Business Corporations Act, practising through a professional corporation does not limit a licensee's personal liability for their own professional negligence or misconduct. The corporation is a business structure, not a shield against professional responsibility.

Why NEO uses one

A professional corporation is a common way for a growing practice to organize its business, employ staff and keep its accounts, while every legal service is still delivered under a paralegal's licence and the Law Society's rules.

Sources

• Business Corporations Act (Ontario)
• Law Society of Ontario

Read next: Confidentiality: NEO's professional duty to you

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This article is general information for people in Ontario, not legal advice. Rules, forms and deadlines change, and every situation is different. Check the current rule or speak to a licensed legal professional before you act.