What Is a Professional LLC?

Difference Between LLC and Professional LLC

The main difference between a LLC and a PLLC is that only professionals recognized in a state through licensing, such as architects, medical practitioners and lawyers, can form PLLCs. A Professional Limited Liability Company or PLLC is formed by licensed professionals for the purpose of providing professional services. Any licensed professional such as doctors, engineers, accountants, lawyers, etc can form a professional LLC.

Formation and Ownership of LLCs

The articles of organization are similar to those for a standard LLC, but extra steps are necessary to file. An LLC that does not want to accept its default federal tax classification, or that wishes to change its classification, uses Form 8832, Entity Classification Election (PDF), to elect how it will be classified for federal tax purposes. Owners of an LLC are called members.

Series LLC vs Traditional LLC

A series LLC is similar to the more traditional LLC. Similar to a corporation umbrella, a series LLC has a “parent” LLC with one or more “child” LLCs that are filed beneath it. However, a series LLC has its differences as well.

Difference Between Domestic LLC and Domestic Professional LLC

The main difference between a LLC and a PLLC is that only professionals recognized in a state through licensing, such as architects, medical practitioners and lawyers, can form PLLCs. A Professional Limited Liability Company or PLLC is formed by licensed professionals for the purpose of providing professional services. Any licensed professional such as doctors, engineers, accountants, lawyers, etc can form a professional LLC.

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