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PROFESSIONAL LIMITED LIABILITY COMPANIES

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Professional limited liability companies (PLLCs) are simply LLCs in which the members are engaged in rendering professional services, such as the practice of medicine or law. Forming a professional LLC is slightly more difficult than forming a standard LLC. Much like the shareholders of a professional corporation, the members of a professional LLC may enjoy personal liability protection for the acts of other members; however, each member remains liable for his or her own professional misconduct. State laws generally require professional LLCs to maintain generous insurance policies or cash reserves to pay claims brought against them.

Professional LLCs are not recognized in all states, most notably California. Professional LLCs are more sophisticated enterprises than standard LLCs, and their organization should be left to a qualified attorney.

Ultimate LLC Compliance Guide

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