Pllc And Llc Difference
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FAQ
PLLCs offer business owners the same benefits as other LLCs, such as personal liability protection and taxation flexibility. A PLLC is a type of LLC in North Carolina that offers personal liability protection to professionals such as lawyers, doctors, and architects who are subject to state licensing requirements.
The key difference between LLCs and PLLCs has to do with malpractice claims. As with a regular LLC, PLLC owners are shielded from personal liability for business debts and lawsuits, and they are not liable for malpractice committed by their business partners.
While an LLC and PLLC both provide personal limited liability protection, a PLLC will not protect you from claims of malpractice or wrongdoing. However, a benefit of a PLLC is that the wrongdoing of one individual member does not create liability for other members.
With an LLC, anyone can be a member, or owner, of the business. State PLLC laws often provide that only licensed professionals can be members, or that a certain number of members must be licensed professionals. A PLLC cannot be used to shield the members from claims for malpractice.