Considerations Before Forming a PLLC (Professional Limited Liability Company) in Florida
Forming a PLLC, or professional limited liability company, in Florida can be confusing at first. After all, why can’t you go with another entity? Well, Florida law prohibits certain licensed professionals from running standard limited liability companies. Still, doctors and lawyers and the like can still secure liability protection and minimized taxes by forming a PLLC. This kind of entity is available to licensed professionals who might not be able to form an LLC while offering many similar benefits.
What is a PLLC?
PLLCs are composed of a member or members who own the business. However, only people providing Florida licensed (or otherwise legally authorized) professional services are capable of forming a PLLC. These licensed professions include certified public accountants, doctors, dentists, attorneys at law, and many others. The best way to find out if your career choice qualifies for PLLC status is to check with an experienced local business attorney.
What Liability Protections Do They Enjoy?
The liability protections offered by a PLLC are a little different than a standard LLC. It still protects you from creditors collecting on debts owed by the PLLC itself and from your fellow member’s malpractice. It also shields you from anyone who is personally injured in connection to your PLLC for reasons other than your own professional malpractice, negligence, or torts. Unfortunately, you can still be held liable if you personally guarantee to repay a business loan, engage in professional malpractice, or commit a tort — whether intentionally or by negligence.
How Do I Form a PLLC in Florida?
Forming a PLLC in Florida is fairly straightforward once you know what steps to follow. First off, you need to ensure that all professional members of the company have the necessary state licenses and certifications. After all, you don’t want to deal with the penalties involved in unlicensed practicing! Then, contact the relevant state licensing board to find out what approval your profession requires. Next, draft and file your articles of organization with theFlorida Division of Corporationsalong with a statement of specific purpose, such as the practice of physical medicine.
What Restrictions Should I Know About?
With Florida PLLCs, some restrictions apply. For starters, the name must follow all Florida business naming restrictions. It must also include the words “professional limited liability” or the abbreviations of “P.L.L.C.” or “PLLC.” You can see where we went with the last option ourselves.Florida law requires that the PLLC refrain from involving itself in any business activities (aside from investments) other than the professional services that it was formed to provide. All members must be licensed and are subject to the regulation by the relevant Florida professional licensing authorities.
Do I Need an Operating Agreement?
The State of Florida does not require an operating agreement for your PLLC. It’s still a smart move to have one, as explained here. Operating agreements dictate the rules and structure of a business in the hopes of minimizing future disagreements or potential disasters. If you’re unsure what to include, a local business attorney can help with that, too.Looking for help with forming a PLLC in Florida? Contact FL Patel Law today by visiting our website or calling (727) 279-5037.Image by Anh Nguyen Duy on Pixabay.