Should I Structure My Florida Business as a PLLC?

 Posted on July 30, 2021 in Business Law

Business owners have multiple options for structuring their company. During the business formation process, the selection of a business entity can ensure that a business will be able to operate correctly while providing owners or partners with protection from liability. Establishing a business as a limited liability company (LLC) can offer many advantages, including flexibility and the ability to utilize pass-through taxation. In Florida, certain types of professionals can create a professional limited liability company (PLLC), which will provide them with many of the advantages of a standard LLC.

Advantages of a PLLC

Professional services providers who require professional licenses or other forms of legal certification or authorization can establish a PLLC. These providers include:

• Doctors, surgeons, and other medical providers

• Chiropractors 

• Certified public accountants (CPAs)

• Dentists and orthodontists

• Veterinarians

• Attorneys

• Architects

• Life insurance agents

As with other types of LLCs, a PLLC can have multiple owners, who are known as members. However, all of the members of a PLLC must be licensed professionals, and they must be limited to conducting business in the specific professional field practiced by the PLLC. A PLLC will provide its members with many of the same protections against liability as an LLC. However, members may be personally liable for any claims based on their own negligence or malpractice, as well as personal guarantees they have made regarding business loans. While the business’s finances may be affected by malpractice claims, including investments made in the business by different members, a member cannot be held personally liable for malpractice committed by another member. 

To establish a PLLC, a business must choose a name that includes “professional limited liability company,” “PLLC,” or “P.L.L.C.” A registered agent must be designated who will receive correspondence on behalf of the company from any government agencies, and this can be an individual member of the PLLC or a separate individual or business, such as an attorney or registered agent service. Articles of organization will need to be filed with the Florida Division of Corporations. While a PLLC is not required to have an operating agreement, it is often a good idea to create this type of agreement to establish rules that apply to the business’s members and address how any disputes between members will be handled.

Contact Our Fort Lauderdale Business Formation Lawyer

If you have questions about whether you should establish your business as a PLLC or another type of entity, Elliot Legal Group can help you address these issues. We will explain your options and make sure you take the correct steps during the business formation process. We can also help you draft an operating agreement or any other business contract while also advising you on how you can resolve business disputes, handle mergers and acquisitions, or obtain financing. Contact our Plantation, FL business law attorney today at 754-332-2101 to get the legal help you need.

Sources:

http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&Search_String=&URL=0600-0699/0621/Sections/0621.03.html

https://llcformationrocket.com/form-a-professional-llc/florida/