Overview of Limited Liability Companies (LLCs) and Professional Limited Liability Companies (PLLCs)
A limited liability company (LLC) combines limited liability protection with tax benefits. A PLLC restricts ownership to licensed professionals, with all members required to be professionally licensed.
Differences Between Professional LLCs and Traditional LLCs
Licensed individuals form a professional corporation (PC) for professional services, while a PLLC is exclusively for licensed professionals. Both types provide liability protection.
Forming and Differentiating LLCs and PLLCs
LLCs have personal liability protection and tax benefits, while PLLCs require all members to hold professional licenses. Each state sets specific PLLC formation guidelines.
Domestic LLC vs Domestic Professional LLC
Only licensed professionals can form PLLCs, with strict regulations for oversight and compliance to protect client interests. Professional LLCs offer an additional layer of credibility and protection to owners.
Additional Regulations and Considerations for LLCs
Articles of organization for LLCs and PLLCs are similar, but extra steps are needed for filing. Some states mandate all members of a PLLC to be licensed in the same profession.
Understanding Series LLC and Traditional LLC
Both traditional LLCs and series LLCs follow similar formation regulations. Consider the differences, benefits, and drawbacks of each type to determine the best fit for your business.