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Professional Limited Liability Company

A professional limited liability company, which is frequently denoted by the letters "PLLC," is a limited liability company which is comprised of members who provide a service which requires a professional licenses. Thus, PLLCs are frequently utilized for law firms, accounting firms, engineering firms, architect firms, medical doctors and other licensed professionals. The PLLC is created by one or more individuals pursuant to the particular filing requirements of the state where the PLLC is formed. These filings usually include the Articles of Incorporation which provides for the names of the PLLC members, managing members and other basic information about the PLLC. The LLC generally has the same features as a standard LLC, so the chief feature of the business structure is the limitation of personal liability for the actions of the LLC itself. In other words, the members of the PLLC do not have to worry that their personal assets will be subject to resolve the debts and liabilities of the PLLC. Each state has different laws which regulate the manner in which the PLLC is formed, structured and operated. As a result, it is advisable to consult the particular laws of the jurisdiction in order to determine the legal requirements of the PLLC.

Fast Facts

  • Professional limited liability companies may have restrictions upon management of the company, depending upon the state statute where the PLLC is located
  • PLLCs must be registered with the state in which the business is formed

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