The professionals such as lawyers, doctors, engineers, architects, chiropractors, are all hugely benefited from the business entity of licensed professionals – the PLLC or Professional Limited Liability Company. This is an alternative form of an LLC or Limited Liability Company. There are many states that do not allow these type of professionals to own an LLC. It is under this condition that a PLLC is formed.
An LLC helps one benefit in terms of tax, liability and other similar such things. California is one state that allows these professionals to form a PLLC. In fact, it also allows these professionals to own Registered Limited Liability Partnerships and Professional Corporations, but in no means allows an LLC to be formed.
The Amato Law Group from Garden City New York is a classic example of a PLLC, manged under the able partner Mr. Alfred Amato. This is basically a law firm dealing in various types of legal services.
The formation a PLLC requires the conforming to certain rules, prescribed by the state. An approval of all the documents and articles of the organization must be acquired from the state licensing board. The rules and regulations vary for different states and different professions. Often this is the reason why the formation of a PLLC takes such a long time.
Immediately after this ,the forms must be filled in by the secretary of the state or the LLC filing office. A PPLC creates a distinction between the owner and the entity, which is why it is preferred among a lot of varied professionals. This means that the individual or the owner of the business will not be held responsible for any kind of liability regarding any case of law or debts related to the business.
A loan to a PLLC is sanctioned only after a personal guarantee is given to back it up, and once you sign the agreement, then you are liable for any of the guarantee you have given for any debt. Another feature of a PLLC is that although you are protected from employees’ action, if you are the supervisor then you will be held liable for any activity of the employees you were supervising.
It is not always that a PLLC will protect you and your business, there are situations like malpractice where it does not protect you. Hence it is always good if you carry your malpractice insurance along with you wherever you go.
These limited liability companies are extremely advantageous in issues of real estate and which is why we have legal firms like Amato Law Group led by Alfred L Amato that houses many an expert lawyers. These lawyers are there to help you out on any legal front including real estate, environment, construction, commerce litigation and many others.
Dealings with the legal problems in any business, big or small is not very easy, such as the issues particularly of tax, organization and liabilities. It is thus that the need for professional help arises, so the bankruptcy is avoided. The Professional Limited Liability Companies are a way to get help regarding these issues, particularly suitable for small business owners.