Many entrepreneurs are familiar with Corporation and LLC entities, but how familiar are you with a Professional Corporation (PC) or Professional LLC (PLLC)? While they may seem similar to their more frequently used counterparts, these structures are authorized by state law for licensed professions. If you're in a business, such as a lawyer, accountant, or architect, it's time to pick a legal structure to incorporate your professional service.
What's the Best Entity to Form?
If you work out of a state where a license is required to provide services... Form a Professional LLC. A PLLC is an LLC that is organized for the purpose of providing professional services in a limited number of professions. These are authorized by some states to limit personal liability for claims related to a co-partner's negligence or misconduct, ensuring that one partner is not liable for these claims. Remember that not every state provides PLLC legislation, so be sure to check in with yours to determine if they do.
If you have a licensed profession like a lawyer, physician, or engineer... Form a Professional Corporation. A Professional Corporation is a legal structure authorized by state law for selected licensed professions and does not absolve a professional for personal liability for their own negligence or malpractice, unlike a regular corporation.
Why Your Professional Service Needs This Legal Structure
The greatest benefit that a PLLC or PC can provide your professional service is not holding one partner responsible or liable for another partner's misconduct or negligence. This differs greatly from general partnerships where owners are not personally liable for the malpractice of other owner. Don't delay on protecting your business! Form a Professional LLC or Professional Corporation with the help of our experts who make it easy to file your documents so you can return to running your business.