What is PLLC?
Asked by: Lisa Kutch | Last update: November 30, 2025Score: 4.5/5 (72 votes)
Forming a PLLC in Florida Like an LLC, a PLLC must include a designation after its name. Options include “professional limited liability company,” “P.L.L.C.,” or “PLLC.” PLLCs are limited to a single professional service, and all members in the PLLC have to be licensed to provide the professional services.
What is the difference between a PLLC and an LLC?
With an LLC, anyone can be a member, or owner, of the business. 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.
What are the benefits of a PLLC?
Advantages. Members of a PLLC aren't personally liable for the malpractice of any other member. This is a big advantage over a general partnership or sole proprietorship. PLLC members are not personally liable for business debts and lawsuits, such as unpaid office rent.
What is an example of PLLC?
By definition, a PLLC can only provide services that are associated with the owners' licenses. For example, three licensed dentists may start a PLLC, but they can't offer services outside of dentistry or operate in other states. The owners of a PLLC are referred to as “members”.
What does PLLC mean in doctors?
A professional limited liability company (PLLC) is a type of business that is specifically designed for certain licensed professionals, such as doctors, nurse practitioners, lawyers, and accountants. In some states, these professionals are required to form a PLLC rather than an LLC in order to practice their craft.
What Is a PLLC? - (Do You Need One?)
What qualifies as a PLLC?
Professionals in California cannot form an LLC or a PLLC, but can form a RLLP (Registered Limited Liability Partnership) or PC (Professional Corporation). And professionals in Arizona can choose between an LLC or PLLC. And the specific rules within a state may also depend on the type of profession as well.
What does PLLC mean for a therapist?
The PLLC business structure and therapists
Some states offer an alternative business structure to the traditional LLC, the Professional Limited Liability Company (PLLC). This business structure is for licensed professionals operating within the state, such as doctors, lawyers and—in many states—therapists.
Does IRS recognize PLLC?
The Internal Revenue Service does not recognize either LLCs or PLLCs for tax purposes. This means that you need to decide if you want to be taxed as an individual, a partnership, or an S Corp.
What states do not recognize PLLC?
So, if you want to form an LLC that offers professional services, you may have to start a PLLC. Other states, such as Delaware and Oregon, don't recognize PLLCs. Instead, Delaware licensed professionals can form Registered Limited Liability Partnerships (RLLPs) or Professional Corporations (PCs).
Can a PLLC be sued?
A PLLC member cannot be liable for things that other PLLC members or owners do–but of course, if the PLLC itself is sued, as it may be when any one member does something wrong, all members' assets put into the PLLC, could be put into jeopardy.
Does a PLLC pay taxes?
PLLCs have to pay income tax just like an LLC, which is dependent on the number of members. One-member PLLCs pay like a sole proprietorship. Those with more than one member are taxed like a partnership. If you need help with your PLLC, you can post your legal need on UpCounsel's marketplace.
What is the best state to form a PLLC?
- Delaware: Delaware is renowned for its advanced and flexible business laws, particularly in corporate law. ...
- Wyoming: Wyoming has strong asset protection and privacy laws, including charging order protection for LLC members and the option for anonymous LLC ownership through a trust.
Does a PLLC need an EIN?
After incorporation, the PLLC should prepare an appropriate operating agreement, obtain a federal Employer Identification Number (EIN, or federal tax number), open a bank account and begin conducting business. In New York, you can set up a PLLC by using our convenient NY PLLC Order Form.
What is the owner of a PLLC called?
The owners of a PLLC are called members, and they have an operating agreement that governs how they work together and divide profits and losses. Many professionals start a PLLC because they want to separate their individual liability from their liability as a member of the business or practice.
Does a PLLC get a 1099?
Please note that a P.L.C is an abbreviation for a PLLC, they are the same entity type. Yes, a 1099 can be issued to a law firm.
Does a PLLC protect personal assets?
PLLCs protect the private property and assets of members. Creditors and debt collectors cannot pursue PLLC members personally for debts associated with the PLLC.
What is the purpose of a PLLC?
Asset Protection: A PLLC shields personal assets from business debts. PLLCs also help shield the owners from legal actions against the company. Tax Flexibility: PLLCs generally offer pass-through taxation. This prevents double taxation faced by corporations.
How do you name PLLC?
Name your PLLC
You'll need to research restrictions surrounding PLLC names in your state and choose a business name that meets those requirements. Your name also needs to be unique, and you'll need to verify with the state that it's available.
Can I change my LLC to a PLLC?
In most cases, business owners can amend the articles of organization of an LLC to change to a PLLC. For example, the state of Arizona requires that a company complete a form to amend its articles of organization and change the name of the company from LLC to PLLC.
Can a PLLC use a SSN?
For federal income tax purposes, a single-member LLC classified as a disregarded entity generally must use the owner's social security number (SSN) or employer identification number (EIN) for all information returns and reporting related to income tax.
What is the new IRS rule for LLC 2024?
Reporting companies created or registered on or after January 1, 2024, but before January 1, 2025, must file their first BOI report within 90 calendar days of receiving actual or public notice from the state's secretary of state or similar office that the company was created or registered.
How is a PLLC taxed?
Since PLLCs must recognize profits immediately, business owners could face taxes on unrealized profits. This “pass through” tax treatment means PLLCs themselves do not pay taxes, but the owners pay taxes on the PLLC's profits and losses on their personal tax returns.
Can an LPC call themselves a psychologist?
This can include the practice of professionals like Licensed Mental Health Counselors (LMHC) and Marriage and Family Therapists (MFT). It's important to note, though, that only doctorate-prepared state licensed psychologists can actually refer to themselves as psychologists or psychological therapists.
What does PLLC mean for a dentist?
In the world of business formation, the term Dental PLLC, or Dental Professional Limited Liability Company, refers to a special legal business entity that is designed for licensed dentists for rendering professional services.