New York PLLC Formation: 2026 Complete Guide to Formation, Taxes & Compliance

How to form a PLLC in New York (12-step roadmap)

To successfully execute a PLLC formation in New York, you’ll need to:

1. Choose a name acceptable to both the professional licensing authority and the New York Department of State (NYDOS)
2. Draft PLLC articles of organization
3. Prepare and execute professional practice entity (PPE) affidavit
4. Obtain approval from licensing authority to form the PLLC
5. Hire registered agent (optional)
6. File articles of organization to NYDOS
7. Get Federal Employer Identification Number (EIN)
8. Create operating agreement for PLLC
9. Complete organization of PLLC
10. Register formed NY PLLC with licensing authority
11. Publish legal notices in two newspapers published in the county where the PLLC is formed for six weeks
12. File PLLC certificate of publication with NYDOS

The licensing authority for all professions except for lawyers is the New York State Education Department (NYSED). Most PLLCs are operational within 3.5 to 5 months, depending on NYSED’s caseload. Registration of the PLLC with NYSED and completion of the publication requirement take additional time, but the PLLC can begin operating before they are complete. For healthcare professionals, registration of the PLLC with NYSED is necessary for medicaid and medicare credentialing. This takes an additional 1-3 months after formation of the PLLC.

Additional requirements for geologists, land surveyors, engineers and accountants: Geology, land surveying and engineering PLLCs must submit an application for a certificate of authorization (COA Form) when they register with NYSED. Similarly, accounting PLLCs must submit an application for registration of a public accounting firm (Form 6R).

Special rules for attorneys: NYSED is not involved in the attorney PLLC formation process. Instead of obtaining approval from NYSED, attorneys must obtain a certificate of good standing from the appellate division where they were admitted. After the PLLC is formed, the formation must then be registered with that appellate division.

Other New York PLLC formation considerations:

• Is a PLLC needed for your practice?
• Which professions may need to form a PLLC?
• Tax elections for PLLCs
• Pros of New York PLLCs
• Cons of PLLCs in New York

What’s a New York PLLC (Professional LLC)?

A New York professional service limited liability company (PLLC) is a type of LLC. A regular LLC and a PLLC are both registered under the New York Limited Liability Company Law. Both protect your personal assets if your company runs into problems. But, they’re different in what kind of activity they can engage in, who may own and run them, and their formation requirements. (To see exactly how they differ, see our LLC vs PLLC breakdown.)

Do you need a PLLC for your New York professional business?

New York law has a strict prohibition on the “corporate practice of professions.” This means that you can’t practice a licensed profession through a regular LLC or corporation. If someone told you otherwise, please don’t believe them.

The only registered business entities that can provide professional services in New York are the PLLC, professional corporation (PC), design professional corporation (DPC) and registered limited liability partnership (LLP). Practicing a profession licensed by NYSED through any other business entity in New York is a crime. Penalties for violation include imprisonment, fines and loss of licensure.

So if your type of business includes providing professional services, you may want to consider forming a PLLC. By creating a PLLC, you’ll have the peace of mind that you’re starting your new business on a strong footing.

Which professions may need to set up a PLLC to practice in New York?

Attorneys and professionals licensed by the NYS Education Department (NYSED) may need to form a PLLC for their New York practice. Common professionals licensed by NYSED include:

• Accountants
• Acupuncturists
• Architects
• Chiropractors
• Dentists
• Doctors
• Engineers
• Interior designers
• Mental health counselors
• Nurses (including NP, LPN and RN)
• Nutritionists
• Social workers
• Therapists (including PT, OT, CAT, MFT, SLP and massage)
• Veterinarians

To see if you may need a PLLC because of your profession, refer to our Directory of NY Professions Requiring a PLLC, PC, DPC, or LLP. A full list of professions licensed by NYSED is available on the website of its office of professions.

Ready to start the process? Jump down to our 12-step guide on how to form a NY PLLC.

How to form a PLLC in New York: A step-by-step guide

Starting a PLLC in New York is a long and arduous process. Mistakes can lead to significant delays. Also, many of the internal rules NYSED uses to review PLLC applications are unpublished. Our law firm has formed hundreds of PLLCs for clients, and we hope this guide will help you benefit from our experience. However, if you’d like us to handle the process from start to finish, look at our flat-fee package for forming a PLLC in New York.

1. Choose a name

   The business name you choose for your PLLC must meet the requirements of both NYDOS and the professional licensing authority. For all professionals other than lawyers, the licensing authority is the New York State Education Department (NYSED).

   What are the NYDOS PLLC name rules?

   NYDOS has three main requirements for NY PLLC names:

   • Cannot conflict with other names registered with NYDOS.
   • Cannot contain restricted or prohibited words by NYDOS, unless authorized.
   • Must end with “Professional Limited Liability Company,” “Limited Liability Company,” “PLLC,” “LLC,” “P.L.L.C.” or “L.L.C.”

   What are the NYSED PLLC name rules?

   NYSED’s New York PLLC naming rules are more onerous. The PLLC name must contain the profession or professions the PLLC will practice. The name also cannot be “misleading” or contain claims of superiority. Sounds pretty straightforward? — Wrong! The way NYSED interprets some of these naming restrictions is confounding. Here are a few examples:

   • Licensed mental health counselors cannot use “LMHC,” but licensed clinical social workers can use “LCSW.”
   • Cannot use made-up words (which NYSED considers any word that is not in the dictionary).
   • Use of “and,” “&” and “/” are restricted.
   • Use of plural words is restricted.
   • Use of terms that suggest a result, such as “be well” are prohibited.
   • Use of “MD” requires actual MD degree (not just an equivalent).
   • Cannot use “hospital,” “clinic” or “center” unless a veterinary practice.
   • Cannot use words NYSED considers undignified or inappropriate.
   • Cannot use “advanced,” “best,” “exceptional,” “expert,” “outstanding,” “premier,” “special,” “super,” or “ultimate.”

   How do you run a name search?

   Prior to deciding on a name, you may want to do a search on the NYDOS corporation and business entity database to check for name conflicts. You may also want to do a search on the NYSED Office of Professions database get an idea of whether the name is too similar to the one you are considering.

   What are the PLLC name rules for attorneys?

   Attorney PLLC names are not subject to NYSED rules. They need to meet the requirements of the Rules of Professional Conduct. If you’re a lawyer, you went through this in law school. But if you were admitted before 2020, you should be aware that the rules have been revised to permit tradenames.

2. Draft New York PLLC articles of organization

   A PLLC’s articles of organization is its birth certificate. It lists the PLLC’s name, who owns it, who manages it, how it is managed, and relevant addresses, amongst other things. You may draft your own, or use the form available on the NYDOS website.

3. Prepare and execute professional practice entity (PPE) Affidavit

   NYSED requires a PPE Affidavit from each owner to be part of the PLLC formation application. The affidavit certifies the PLLC owner’s license information, and that the PLLC will comply with NYSED rules and the New York Education Law. The affidavit must be notarized. A form is available on the NYSED Office of the Professions website. NYSED is not involved in the formation of law PLLCs. Skip this step if you’re an attorney.

4. Obtain approval to form a New York PLLC from licensing authority

   Before a PLLC can be formed in New York, you must obtain the approval of the licensing authority for your profession. Unless you’re an attorney, the licensing authority is NYSED. It comes in the form of a PLS-709 certificate of authority. Attorneys obtain a certificate of good standing from the appellate division of their admission instead.

   How to obtain a PLS-709 certificate of authority from NYSED?

   Obtaining a certificate of authority consists of submitting a PLLC formation application to NYSED. The PLLC formation application is comprised of:

   • PLLC articles of organization
   • PPE affidavit
   • Cover letter requesting certificate of authority to form a PLLC, stating license information for all owners and managers, and explaining the PLLC name
   • Contact information sheet
   • Check for $10/owner

   Send the application to:

   NY State Education Department
   Office of the Professions
   Division of Professional Licensing Services
   Professional Corporations Unit
   89 Washington Avenue
   Albany, NY 12234-1000

   How long before approval?

   In our experience, the application will sit in NYSED’s mailroom from anywhere between 2-10 weeks. Then, it will be placed on the desk of a specialist for review. NYSED typically says to expect 60 days for specialist review. After review by a specialist, it is put in front of a supervisor for a final quality check, and NYSED’s consent to form the PLLC is mailed out if there are no issues with the application.

   Hopefully, in a few months, you’ll receive a “Form PLS709” certificate of authority to form a PLLC. If NYSED rejects, you might be back to square one, depending on the circumstances.

   Attorneys: How to obtain a certificate of good standing?

   A PLS-709 is not needed to form an attorney PLLC. Instead, the certificates of good standing of each owner is required. They can be ordered from attorney online services.

5. Hire registered agent (optional)

   New York doesn’t require PLLCs to have a registered agent. It only requires a United States address. The address you provide is where legal and government papers are sent. These papers can be time sensitive, so an agent can help ensure that you receive them by email, even if you are out of the state or the country. You don’t want to go on a holiday, only to come back and learn you lost a lawsuit because you did not receive and respond to papers on time.

6. Submit articles of organization to NYDOS

   A New York PLLC is formed when its articles of organization are filed with NYDOS. The filing package comprises:

   • Finalized articles of organization
   • PLS-709 certificate of authority issued by NYSED (or certificates of good standing for attorneys)
   • $200 filing fee
   • $10 certification fee
   • $25 expedite fee (recommended)
   • Cover letter requesting 24-hour expedited handling and certification of filed documents

   Mail the package to:

   Attention: Expedited Handling
   New York Department of State
   Division of Corporations
   One Commerce Plaza
   99 Washington Avenue
   Albany, NY 12231-0001

   Once processed, NYDOS will send you a certified copy, filing acknowledgement letter and filing receipt for the articles.

   Pro Tip: Requesting expedited handling is optional, but strongly recommended. An expedited handling request guarantees that the filing request will be reviewed in 1-2 business days. Otherwise, processing times can range from a week to several months, depending on the caseload of NYDOS.

7. Get Federal Employer Identification Number (EIN)

   The EIN serves as the tax identification for the PLLC. If you or another owner has a valid social security number, you can get an EIN directly from the Internal Revenue Service (IRS) website. Otherwise, you’ll have to complete an IRS Form SS-4 and mail it to the IRS at the following address:

   If the PLLC has a U.S. address:
   Internal Revenue Service
   Attn: EIN Operation
   Cincinnati, OH 45999

   If the PLLC does not have a U.S. address:
   Internal Revenue Service
   Attn: EIN Operation
   Cincinnati, OH 45999

   It should take about 8 minutes to obtain an EIN online. If submitted by mail, you should expect a turnaround time of about 4 weeks (although we have seen up to 3 months). Once successful, the IRS will issue your PLLC a CP-575 letter, which designates the PLLC’s EIN.

   The CP-575 EIN letter, together with the certified copy of the articles of organization, is needed to open a bank account. Each bank has its own policies about what they need to open an account. So call your bank to be sure.

8. Create an operating agreement for PLLC

   New York requires PLLC owners to sign a written operating agreement within 90 days of its formation. You can download a free, attorney-drafted New York PLLC Operating Agreement Template form here.

   The operating agreement is a legal contract amongst the PLLC, its owners, and its managers. It details the structure and operations of the PLLC, the rights of owners and managers, and, importantly, what happens when things go wrong. A well crafted operating agreement is essential as it helps to prevent problems before they arise, and protects the PLLC and its owners from external interference.

   Some things to consider when drafting an operating agreement include:

   • Member (owner) voting rights
   • Member and manager roles
   • How much each member contributes (capital contributions)
   • Admission, withdrawal and expulsion of members
   • Allocations of profits and losses
   • Transfer restrictions
   • Dissolution
   • Third party (assignee) rights
   • Fiduciary duties
   • Insurance
   • Litigation or arbitration if something goes wrong

9. Complete organization of PLLC

   A New York PLLC is ready to do business once it goes through a process called “organization.” Organizing a PLLC involves drafting, signing, and certifying a few important documents. These documents include:

   • Operating agreement
   • Statement of the organizer
   • Initial resolutions of members (owners)
   • Initial resolutions of managers
   • Membership notices or certificates
   • Membership ledger

   The resolutions of members and managers are a record of the official acts of the PLLC. The initial resolutions usually touch on confirmation of members and ownership structures, and who has authority to open bank accounts, sign contracts or do other things.

   The membership notices or certificates serve as evidence of ownership of the PLLC, while the membership ledger keeps track of changes in ownership over the PLLC.

   The organizational documents are internal documents and are not filed with government agencies. Once the organization process is complete, and bank accounts are opened, the PLLC is ready to operate.

10. Register formed PLLC with licensing authority

    Once the PLLC has been formed, New York requires it to register with its licensing authority within 30 days of formation. This is done by filing a certified copy of the articles of organization (received in step 6) to NYSED for most professionals, and to the appropriate appellate division for lawyers. If you’ve received a hardcopy of the certified copy, make sure to make a copy and keep the original. You will not get the original returned to you.

    How to register with NYSED?

    To register the PLLC with NYSED, the certified copy should be mailed to the following address:

    NY State Education Department
    Office of the Professions
    Division of Professional Licensing Services
    Professional Corporations Unit
    89 Washington Avenue
    Albany, NY 12234-1000

    How long does it take to register a formed PLLC with NYSED?

    The time it takes for a PLLC to be registered with NYSED is fluid. We’ve seen it take as little as 4 weeks, and as much as 16 weeks. But most PLLCs are registered within 10 weeks. Fortunately, you don’t need to wait for this process to be complete to use the PLLC.

    Healthcare PLLC medicaid/medicare alert: If your PLLC will be undergoing medicare or medicaid credentialing, it cannot be credentialed until registration with NYSED is complete.

    How to verify registration of PLLC with NYSED?

    NYSED will not inform you when the PLLC is registered. Once registration is complete, your PLLC will show up in NYSED’s business entity database. So you’ll want to check the database yourself after a few weeks.

    What special PLLC registration requirements are there for engineers, geologists and land surveyors?

    New York PLLCs practicing engineering, geology or land surveying must also submit an application for a certificate of authorization (COA Form) together with a $125 fee must be sent to NYSED. These should be sent along with the certified copy.

    What special PLLC registration requirements are there for accountants?

    Accounting PLLCs must also submit an application for public accounting firm registration (Form 6R) together with a fee must be sent to NYSED along with the certified copy. The fee is $50/office plus $10/licensed owner plus $900/non-licensed owner.

    Lawyers: How to register with the appellate division?

    NYSED is not involved in registering attorney PLLCs. Instead, a certified copy of the articles of organization should be forwarded to the appellate division of admission of each owner.

11. Publish legal notices of PLLC formation

    After you’ve formed your PLLC, it must publish legal notices for six consecutive weeks in two newspapers to inform the public of its formation. This has to be done within 120 days of formation.

    Not any newspaper will do. They must be designated by the county clerk of the county where your PLLC’s legal office is located. So you’ll have to contact the county clerk for the specific newspapers, and then contact the newspapers to arrange for publication.

    A legal notice looks something like this:

    Notice of Formation of a NY PLLC. Name: [Name of PLLC]. Articles of Organization filed with Secretary of State (SSNY) on [Date PLLC was formed]. Office location: [County location of office] County. SSNY designated as agent of PLLC upon whom process against it may be served. SSNY to mail copy of process to [Address for legal papers]. Purpose: Practice [Profession].

    The longer the notice, the more expensive. From experience, Albany county newspapers cost the least, while New York (Manhattan) and Bronx county newspapers cost the most. Depending on the county, publication costs will be anywhere between $200 and $1,500.

    Pro tip: In order to save money on publication fees, you can hire a registered agent located in Albany and use that as a basis for publishing in Albany county. For PLLCs located in New York City, this might save you over $1,000.

12. File PLLC certificate of publication with NYDOS

    After you receive the affidavits of publication from the two newspapers, you’ll need to draft a certificate of publication. A form is available on the NYDOS website. To complete the process, the following should be sent to NYSED by mail:

    1. Certificate of publication
    2. Affidavits of publication from two newspapers
    3. Check for $50 filing fee
    4. Check for $25 expedite fee (recommended)
    5. Cover letter requesting expedited filing of the certificate of publication

    These should be mailed to the following address:

    Attention: Expedited Handling
    New York Department of State
    Division of Corporations
    One Commerce Plaza
    99 Washington Avenue
    Albany, NY 12231-0001

    Once processed, NYDOS will mail you a filing receipt for the certificate. This serves as proof that your PLLC completed the New York publication process. With this, all the general steps needed to form a PLLC is complete.

    Pro tip: As with the filing of the PLLC articles of organization, paying for expedited handling is optional but strongly recommended. It can mean the difference between whether the certificate is filed in 1-2 business days, or in a few months.

Tax elections for New York PLLCs

When a PLLC is formed, it is automatically treated as a sole proprietorship for tax purposes if it has only one owner. If it has more than one owner, it is automatically treated as a partnership for tax purposes. However, a PLLC can choose to be treated as a subchapter “S” corporation or subchapter “C” corporation for tax purposes. This choice must be made within 2 months and 15 days from the formation of the PLLC. It can also be made 2 months and 15 days from the start of the year. After a choice has been made, PLLCs can change its tax-classification every 60-months. The following forms are filed with the Internal Revenue Service (IRS) to make tax-elections for the PLLC:

• Subchapter “S” Corporation: Form 2553
• Subchapter “C” Corporation: Form 8832
• Partnership: Form 8832
• Sole Proprietorship: Form 8832

The address to which the forms are sent depend on where the PLLC is located. Information is in the instructions to the applicable form.

“S” corporation status is often chosen to help to reduce self-employment taxes. “C” corporation taxation, on the other hand, is sometimes chosen to defer taxable income from one year to another. For asset heavy PLLCs, the sole proprietorship or partnership tax structure might be the best because transfers of assets between a PLLC and its owners are treated as if handing the asset from the owner’s right hand to left hand. When taxed as a corporation, transfers of assets between owners and the PLLC are treated as purchases and sales of assets, which can have tax consequences. Since the tax objectives differ from person to person, it is always advisable to consult with a certified public accountant as to determine what is most suitable for your financial goals.

Pro Tip: Tax-classification is for tax purposes only. They do not affect the personal liability protection provided by the PLLC.

Ongoing requirements for New York PLLCs

After you’ve successfully set up your PLLC, you’ll have to keep up to date with certain things to keep it in good standing. Otherwise, New York may shut down your PLLC.

1. Biennial statements

   New York State doesn’t require a PLLC to file an annual report or pay an annual filing fee. Instead, it needs to file a biennial statement every two years with NYDOS, in the month it was formed. It is a simple process that you can complete on the NYDOS website.

2. Tax obligations

   The annual tax returns that a PLLC has to file depends on its tax classification. Typically, it would need to file a New York Form IT-204-LL, plus, if it has more than one owner, an IRS Form 1065. However, if the PLLC chooses subchapter “C” corporation taxation, it would need to file a New York Form CT-3 and IRS Form 1120, instead; and if it chooses subchapter “S” corporation taxation, it would need to file a New York Form CT-3-S and IRS Form 1120-S. PLLCs may be subject to various local tax reporting requirements like New York City unincorporated business income tax or business corporation tax. You will want to check with an accountant about what specific tax returns your PLLC needs to file, and when the deadlines are.

Benefits of New York PLLCs

Many professionals prefer the PLLC structure for their New York based practices. It combines the company level liability protections of corporations and LLPs with the flexibility of the LLC. This is particularly true for solo practitioners who would otherwise be unable to access LLP type protections.

1. Full liability shield

   New York PLLCs, LLCs and corporations provide a full liability shield. The owners (members) of a PLLC are not responsible for its debts and obligations. Its managers are not either. Liability is “limited” only to the company’s assets. So PLLC members and managers only stand to lose what they keep in the PLLC.

   There is one big caveat to this. The liability shield doesn’t protect against personal wrongdoing. For instance, if you hit someone at your practice because they causing trouble, the law treats this as you doing something wrong, rather than the company. So you are fully responsible and personally liable for it. The law regards malpractice as a personal wrongdoing. Therefore, liability is not limited and PLLC members must ensure they have good malpractice insurance. (Note: For a detailed breakdown of how this compares to other entities, check out our comparison of corporate formalities and liability shields.)

2. Charging order protection

   PLLCs, LLPs and LLCs in New York provide charging order protection. It protects owners of a company from having to work with owners they have not agreed to work with. When there is no charging order protection, a person owed money by a business owner can gain ownership of the business.

3. Flexible scope of activities, including professional services

   PLLCs can provide licensed professional services. A New York PLLC may also conduct any business that a regular LLC can. Thus, a doctor can run both a medical practice and a dance studio through a single PLLC.

4. Flexible tax structure for maximum tax advantages

   PLLCs, like LLCs, are, by default, taxed as “disregarded entities.” Tax law treats a PLLC as one and the same as its owners. A PLLC is a sole proprietorship with one owner, and a partnership with more. However, a PLLC can choose to be treated like a corporation for tax-purposes, including a subchapter “C” corporation and subchapter “S” corporation. A PLLC is not subject to federal double taxation unless it chooses subchapter “C” corporation treatment.

5. Can be a solo practice

   There is no minimum number of owners required to form a PLLC. Therefore, a New York solo practice can use a PLLC.

Downfalls of New York PLLCs

Many states are bureaucratic about the practice of licensed professions within their borders. New York is no different. These bureaucracies create certain disadvantages for New York PLLCs.

1. Ownership and management professional license restrictions

   New York PLLCs must be owned and run by professionals licensed in New York to practice the profession or professions the PLLC will engage in. So if a PLLC will provide physical and occupational therapy services, its owners, as well as managers, must be licensed in physical therapy and occupational therapy.

2. Long time and more requirements for forming

   One difference between an LLC and PLLC in New York is ease of formation. It takes a minimum of 3.5 months to form a New York PLLC. NYSED must approve a PLLC before formation is possible. NYSED usually says it takes a minimum of 60 (and sometimes 90) days to review an application. This timeframe does not include postage time, mailroom time, or quality check time. Complicated applications also need professional board approval, which can take several months. On average, forming a New York PLLC takes closer to 5 months.

3. Less widely recognized nationally

   A few states don’t recognize the PLLC form. You’ll have to form a different entity type in order to practice in these states. For example, a PLLC can’t practice in both New York and California, because California doesn’t recognize PLLCs. So a New York PLLC would need to form a PC for the California side of its practice.

Comparison of NY PLLC with other NY registered business entities

We usually recommend that professionals set up PLLCs for their practices. But sometimes, a different type of company might be a better choice. Below is a comparison of the New York PLLC against other types of entities:

Want a more detailed breakdown? Check out our complete New York Professional Entity Comparison Guide to see exactly how the PLLC stacks up on taxes, liability protection, and corporate formalities.

• New York professional corporation (PC) vs PLLC
• New York design professional corporation (DPC) vs PLLC
• New York limited liability partnership (LLP) vs PLLC
• New York limited liability company (LLC) vs PLLC
• New York business corporation vs PLLC

1. New York professional corporation (PC) vs PLLC

   • Liability shield: Equal. Both provide the same full liability shield.
   • Charging order protection: PLLC wins. New York PCs do not provide charging order protection. New York PLLCs do.
   • Permitted activities: PLLC wins. New York PCs can only conduct professional practice. New York PLLCs can conduct professional practice and also do everything a regular LLC can.
   • Taxation: PLLC wins. PCs are taxed as subchapter “C” corporations, unless they choose to be “S” corporations. Besides these, PLLCs can also choose to be taxed as sole proprietorships or partnerships.
   • Solo practice: Equal. Both can be owned and managed by a single person.
   • Ownership & management: Equal. Both must be owned and managed by licensed professionals.
   • Formation time: Equal. Both take the same time for NYSED formation approval.
   • National recognition: PC wins. PCs are more widely recognized than PLLCs in the United States.

2. New York design professional corporation (DPC) vs PLLC

   • Liability shield: Equal. Both provide the same full liability shield.
   • Charging order protection: PLLC wins. New York DPCs do not provide charging order protection. New York PLLCs do.
   • Permitted activities: PLLC wins. New York DPCs can only conduct the professional practice of engineering, architecture, land surveying and geology. New York PLLCs can conduct professional practice and also do everything a regular LLC can.
   • Taxation: PLLC wins. DPCs are taxed as subchapter “C” corporations, unless they choose to be “S” corporations. Besides these, PLLCs can also choose to be taxed as sole proprietorships or partnerships.
   • Solo practice: Equal. Both can be owned and managed by a single person.
   • Ownership & management: DPC wins. New York PLLCs must be owned and managed only by licensed professionals. DPCs can have some owners and managers that are not licensed professionals (less than 25%)
   • Formation time: Equal. Both take the same time for NYSED formation approval.
   • National recognition: PLLC wins. PLLCs are more widely recognized than DPCs in the United States.

3. New York registered limited liability partnership (LLP) vs PLLC

   • Liability shield: Equal. Both provide the same full liability shield.
   • Charging order protection: Equal. Both provide charging order protection.
   • Permitted activities: Equal. Both can conduct professional practice and engage in other business activity.
   • Taxation: PLLC wins. LLPs are taxed as partnerships. Besides this, PLLCs can be taxed as sole proprietorships, or choose to be taxed as subchapter “S” or “C” corporations.
   • Solo practice: PLLC wins. LLPs must have a minimum of two owners. PLLCs can have one.
   • Ownership & management: Equal. Both must be owned and managed by licensed professionals.
   • Formation time: LLP wins. New York LLPs do not need approval from NYSED to form. New York PLLCs do.
   • National recognition: LLP wins. LLPs are more widely recognized than PLLCs in the United States.

4. New York LLC vs PLLC

   • Liability shield: Equal. Both provide the same full liability shield.
   • Charging order protection: Equal. Both provide charging order protection.
   • Permitted activities: PLLC wins. New York PLLCs can practice licensed professions. New York LLCs cannot. (If you currently have an LLC, learn how to convert an LLC to a PLLC via statutory merger.)
   • Taxation: Equal. Both are taxed as sole proprietorships or partnerships. But both can also choose subchapter “S” or “C” corporation taxation.
   • Solo practice: PLLC wins. An LLC cannot practice a profession in New York. A New York PLLCs can.
   • Ownership & management: LLC wins. New York PLLCs must be owned and managed only by licensed professionals. LLCs don’t have ownership or management restrictions.
   • Formation time: LLC wins. New York LLCs do not need approval from NYSED to form. New York PLLCs do.
   • National recognition: LLC wins. LLCs are more widely recognized than PLLCs in the United States.

5. New York Business Corporation vs PLLC

   • Liability shield: Equal. Both provide the same full liability shield.
   • Charging order protection: PLLC wins. New York business corporations do not provide charging order protection. New York PLLCs do.
   • Permitted activities: PLLC wins. New York PLLCs can practice licensed professions. New York business corporations cannot.
   • Taxation: PLLC wins. Corporations are taxed as subchapter “C” corporations, unless they choose to be “S” corporations. Besides these, PLLCs can also choose to be taxed as sole proprietorships or partnerships.
   • Solo practice: PLLC wins. A New York business corporation cannot practice a profession. A New York PLLCs can.
   • Ownership & management: Business corporation wins. New York PLLCs must be owned and managed only by licensed professionals. Business corporations don’t have ownership or management restrictions.
   • Formation time: Business corporation wins. New York business corporations do not need approval from NYSED to form. New York PLLCs do.
   • National recognition: Business corporation wins. Business corporations are more widely recognized than PLLCs in the United States.

NY PLLC checklist: Formation essentials

• Draft NY PLLC articles of organization
• Draft and notarize professional practice entity (PPE) affidavit
• Draft NY PLLC formation application cover letter, including license information and explanation of PLLC name
• Send articles, affidavit, cover letter and $10/owner to NYSED office of professions, to get a certificate of authority
• Send the certificate of authority and approved NYSED approved articles to NYDOS, with a cover letter requesting certification and expedited processing, and $235 (See NYDOS filing steps)
• Get certified articles and filing receipt from NYSED
• Get Employer identification number (EIN)
• Create an operating agreement (we’ve provided a free NY PLLC template)
• Draft, execute and certify organizational documents, including operating agreement, statement of the organizer, initial resolutions of members, initial resolutions of managers, membership notice and membership ledger
• File certified NY PLLC articles of organization with NYSED
• Draft legal notice of publication
• Contact county clerk of PLLC’s office county, as stated in articles, to get designated newspapers in the county for legal notices
• Hire designated newspapers to publish legal notices
• Get affidavits of publication from newspapers
• Draft NY PLLC certificate of publication
• Send affidavits and certificate to NYDOS, with a cover letter requesting expedited processing, and $75.

New York PLLC Formation: Final thoughts

Executing a New York PLLC formation is an excellent choice for protecting your practice. Compared to other options, the PLLC provides the widest amount of protection for your assets and ownership; and is the most flexible in terms of activities and taxation.

On the other hand, setting up a PLLC is a long and difficult process, even when done with no mistakes. We’ve helped hundreds of New York professionals establish their practices, and would be happy to assist with forming your PLLC.

PLLC formation in New York: Frequently Asked Questions (FAQ)