A Michigan PLLC is a business structure suitable for licensed professionals who want to provide professional services in the state. The difference between an LLC and a PLLC is mainly that only licensed professionals such as architects, doctors, lawyers, and accountants can form PLLCs.
Legal Structure and Liability
A PLLC has the same legal structure as an LLC. However, the state licensing board must verify the licenses of all owners of a PLLC and approve its formation.
In most cases, if a PLLC is formed, the individual will not be personally liable for the business debts or any lawsuits against the business. However, a professional can’t use a corporation or a PLLC to protect themselves from their own malpractice. Professionals need malpractice insurance with a PLLC.
Formation and Regulation
To form a PLLC, articles of organization must be filed with the state business department. The licensing board must verify the licenses of PLLC owners and approve formation. Most professionals need either a professional corporation or a PLLC.
PLLC is an acronym of a legal term that stands for professional limited liability company. A PLLC is specifically for services that require professional licensure, including dental, medical, real estate, engineering, nursing, accounting, or law. Usually, all PLLC members must be licensed.