The main distinction between an LLC and a PLLC is that a PLLC offers members limited liability status except in an instance of malpractice. … However, in the case of malpractice a realtor would not get the limited liability protection and could lose everything in the business, and their own personal assets, as well.
What does PLLC mean in real estate?
A professional limited liability company (“PLLC”) is a business entity designed for licensed professionals, such as lawyers, doctors, architects, engineers, accountants, and chiropractors.
What is the purpose of a PLLC?
A Professional LLC (PLLC) is a type of Limited Liability Company formed for the purpose of providing professional services. Professional services are those where a person is licensed by the state for the service they provide. In most states, all members of a PLLC are required to be licensed.
What are the benefits of a PLLC?
- Members of a PLLC aren’t personally liable for the malpractice of any other member. …
- PLLC members are not personally liable for business debts and lawsuits, such as unpaid office rent.
- The PLLC can choose to be taxed as a pass-through entity or as a corporation.
What is the difference between LLC and pllc?
A PLLC is a kind of LLC specifically for licensed professionals. The difference between an LLC and a PLLC is mainly that only licensed professionals such as architects, doctors, lawyers and accountants can form PLLCs. … The documents on licensing are then sent to the licensing board of the state for approval.
Does Colorado require PLLC?
You should make sure you have an operating agreement for your PLLC. Unlike professional licenses, articles of organization, naming restrictions, and service restrictions, this is not a state requirement.
How are PLLC taxed?
Professional LLC (PLLC)
The PLLC is does not pay income taxes as an entity at the federal level. A single member PLLC is automatically treated as a disregarded tax entity, the same as a sole proprietor, giving it pass-through tax treatment. … Self-employment income incurs an additional tax of 15.3 percent.
Can a LLC own a pllc?
Note: The one exception is California, where professionals cannot form an LLC or PLLC; instead, they can form a professional corporation or limited liability partnership.
Does California allow PLLC?
While PLLCs are not allowed in California, California’s partnership law, like an equivalent law in many other states, does provide for the creation of a special kind of partnership called a limited liability partnership or LLP.
Who is required to form a PLLC?
To form a PLLC, a licensed professional must sign all filing documents as well as include their professional license number and a certified copy of their license. Importantly, they must submit these documents for approval with their state licensing board before filing them with their state’s secretary of state.
Does VA have PLLC?
A Virginia PLLC is a limited liability company (LLC) formed specifically by people who will provide Virginia licensed professional services. LLCs in general are businesses registered with the state that consist of one or more people—called LLC members—who own the business.
What is the owner of a pllc called?
The owners of a PLLC are called members, and they have an operating agreement that governs how they work together and divide profits and losses. Many professionals start a PLLC because they want to separate their individual liability from their liability as a member of the business or practice.
Does Florida have PLLC?
In Florida, individuals that hold Florida professional licenses may structure their business as a Florida professional limited liability company or PLLC. This classification provides certain liability protections regarding the licensed profession similar to the advantages of an LLC.
Does Arizona require PLLC?
Answer: Only three percent of Arizona LLCs are PLLCs. Few people are required to form an Arizona PLLC. … The Articles of Organization must state that the company is a professional limited liability company. 2.
What type of tax return does a pllc file?
The PLLC files a standard Form 1120, Corporate Income Tax Return, and pays taxes at the regular corporate tax rate. It retains earnings as a corporation, however, and doesn’t distribute them to members for personal taxation.
Does a pllc need an EIN?
An LLC applies for an EIN by filing Form SS-4, Application for Employer Identification Number. … A single-member LLC that is a disregarded entity that does not have employees and does not have an excise tax liability does not need an EIN. It should use the name and TIN of the single member owner for federal tax purposes.