Professional Limited Liability Company (PLLC)

Professional Limited Liability Company (PLLC)

A professional limited liability company (PLLC) is a limited liability company formed for the purpose of providing professional services.


Overview

Main Guide: Starting a Business.

Main Guide: Professional Corporation (PC)

A professional limited liability company (PLLC) is a limited liability company formed for the purpose of providing professional services. Usually this is professions that require a state license to be practiced: doctor, lawyer, accountant, architect, or engineer. Typically, a PLLC’s members must all be practicing the same profession. The PLLC’s members' limited liability typically only extends to business claims, such as a claim from a creditor. They are not immune from professional negligence or malpractice suits.


Related Services


Taxes

Main Guide:taxes

A PLLC with two or more members is treated as a partnership, wherein all profits and losses are reported on the owners’ individual tax returns. A LLC with one member is treated as a sole proprietorship.


Pros & Cons of PLLC

Pros:

  • No limit on the number of owners.
  • No annual meeting or minute book requirements.
  • Owners have limited liability for business debts and obligations.

Cons:

  • Does not enjoy the tax benefits of a corporation.
  • Cannot issue stock.