What does PLLC stand for?
professional limited liability company
A PLLC is a special kind of business entity available to licensed professionals. By Christine Mathias, Attorney. A professional limited liability company (PLLC) is a business entity that offers tax benefits and limited liability for professionals, such as lawyers, accountants, and doctors.
What does PLLC stand for in medicine?
A professional limited liability company (“PLLC”) is a business entity designed for licensed professionals, such as lawyers, doctors, architects, engineers, accountants, and chiropractors.
Is a pllc the same as an LLC?
PLLCs and LLCs are essentially the same business structure. However, anyone looking to form a business that provides professional services will need to consider which structure is best for them. While only three states require licensed professionals to form a PLLC, at least thirty states offer the option.
What is a PLLC in New York?
A New York PLLC is a limited liability company (LLC) formed specifically by people who will provide New York licensed professional services. Like other LLCs, PLLCs protect their individual members from people with claims for many (but not all) types of financial debts or personal injuries.
What are the benefits of a PLLC?
Advantages
- Members of a PLLC aren’t personally liable for the malpractice of any other member.
- PLLC members are not personally liable for business debts and lawsuits, such as unpaid office rent.
- The PLLC can choose to be taxed as a pass-through entity or as a corporation.
How do you get a pllc?
To form a PLLC, a licensed professional must sign all filing documents as well as include their professional license number and a certified copy of their license. Importantly, they must submit these documents for approval with their state licensing board before filing them with their state’s secretary of state.
What can a pllc do?
State PLLC laws often provide that only licensed professionals can be members, or that a certain number of members must be licensed professionals. A PLLC cannot be used to shield the members from claims for malpractice. However, the malpractice of one member cannot create liability for the other members.
Do I need an EIN for a pllc?
Most new single-member LLCs classified as disregarded entities will need to obtain an EIN. A single-member LLC that is a disregarded entity that does not have employees and does not have an excise tax liability does not need an EIN. It should use the name and TIN of the single member owner for federal tax purposes.
Can a PLLC have a CEO?
Yes, limited liability companies (LLC) have it well within their rights to appoint a CEO or any other corporate officer they desire. However, unlike corporations, LLCs are not required to have a CEO.
Can a PLLC have employees?
The only people that can have ownership in a PLLC are those that can provide the services that require the license.” PLLCs typically have multiple owners, called members.
What does PLLC stand for in legal category?
What is a PLLC: Everything You Need to Know. PLLC stands for “professional limited liability company” and is like a limited liability company except run by licensed professionals like doctors and lawyers.3 min read.
Who can be a member of a PLLC?
While specifics vary by state, many states limit who can be an owner/member of a PLLC. In some states, only licensed professionals of the specific service can be members of a Professional Limited Liability Company. How does limited liability work with a PLLC? Like an LLC, the PLLC creates a separation between the individual owners and the business.
Can a professional limited liability company ( PLLC ) be formed?
In these states, licensed professionals who want the benefits of an LLC must form a PLLC instead. Most states that don’t allow professionals to form regular LLCs do allow professionals to form PLLCs, with the notable exception of California.
Can a professional form a PLLC in California?
Most states that don’t allow professionals to form regular LLCs do allow professionals to form PLLCs, with the notable exception of California. California allows professionals to form registered limited liability partnerships (RLLPs) or professional corporations (PCs), but not LLCs or PLLCs.
