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 Professional Service Limited Liability Company (PLLC) Formation Flat-Fee Package
Package includes the following:
- Preparation of the Articles of Organization.
- Filing the Articles of Organization with the New York Department of Education.
- Obtaining the Certificate of Authority from the New York Department of Education.
- Filing the Articles of Organization and Certificate of Authority from the New York Department of State.
- Filing a certified copy of the Articles of Organization with the New York Department of Education.
- Preparation of a single member Operating Agreement.
- Application for Employer Identification Number (EIN).
If you’re considering what type of professional service company to use, or if you have decided and want help setting it up, let us know. We’d be glad to help!