New York PLLC
Professional Service
Limited Liability Company
Formation

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.