Licensed New York professionals can choose to form a professional service limited liability company (PLLC) to conduct the business of their profession in New York. Like the standard LLC, the New York PLLC combines the benefits of partnerships (pass-through taxation and fewer formalities) with those of the corporation (limited liability and perpetual duration).
Like other forms of professional service company with limited liability, the liability protection extended by a New York PLLC does not cover a professional’s acts in the rendering of his or her professional services. However, it can protect a professional from acts and omissions unrelated to the professional’s own rendering of the service, and the acts of other owners of the company.
The advantages and disadvantages that a New York PLLC has in comparison to a professional service corporation are similar to those that an LLC has in comparison to a corporation. One significant advantage, the PLLC has over the professional service corporation is that it can be organized to conduct a wider range of businesses. A doctor conducting his medical practice through a company organized as a professional service corporation cannot also operate a dance studio through that company; a doctor doing so through a New York PLLC can! The ability to form a multi-purpose company can be attractive to multi-talented professionals who may not want to bear the increased financial and temporal costs of running multiple companies.
New York Single-Member Professional Service Limited Liability Company (PLLC) Formation Flat-Fee Package
Package includes the following:
- Ensure compliance with PLLC naming requirements
- Prepare of articles of organization.
- File PLLC articles of organization from New York Department of Education.
- Obtain certificate of authority from New York Department of Education.
- File PLLC articles of organization and certificate of authority with New York Department of State, Division of Corporations.
- File certified PLLC articles of organization with New York Department of Education.
- Prepare single member PLLC operating agreement.
- Prepare statement of authorized person.
- Prepare written consent of sole member.
- Prepare written consent of sole manager.
- Apply for employment identification number (EIN), if requested (current social security number or taxpayer identification number required).
Flat-Rate Legal Fee: $1,689
*Flat-rate fee is for a PLLC appropriate for one member (owner) only, and does not include state fees, which as of January 2018, are between $230 and $255, annual registered agent fees (registered agent not required in New York) or PLLC publication fees.
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