New York Professional Limited Liability Company PLLC Formation Package
What is this form?
The New York Professional Limited Liability Company (PLLC) Formation Package is a collection of documents required to legally establish a Professional Limited Liability Company in New York. This form is specifically tailored for professionals who wish to offer their services under a structured business entity that provides limited liability benefits. Unlike standard LLCs, PLLCs are geared toward regulated professions, ensuring compliance with state-specific licensing requirements.
Key components of this form
- Application for Reservation of Name: This step allows you to secure your desired business name for up to 60 days.
- Articles of Organization: This essential document outlines the structure and purpose of your PLLC, including names and addresses of members.
- Certificate(s) of Registration: Proof of professional licensing required from the New York State Education Department.
- Operating Agreement: A governance document that details how the PLLC will be managed and establishes the rights and responsibilities of members.
- Publication Requirement: Details regarding the necessity to publish a notice in local newspapers about the PLLC formation.
Situations where this form applies
You should use the New York PLLC Formation Package when you are a licensed professional (e.g., lawyer, doctor, accountant) planning to establish a PLLC to provide your services. This form is necessary at the beginning stages of starting your business and should be completed before you start operations or enter contracts related to your professional services. It helps ensure that your business structure aligns with New York state laws governing professional practices.
Who this form is for
- Licensed professionals in fields such as law, medicine, or accounting who plan to practice in New York.
- Entrepreneurs looking to protect their personal assets while practicing their profession through a formal business structure.
- Individuals or groups planning to collaborate in providing professional services under a PLLC framework.
How to complete this form
- Step 1: Reserve your PLLC name through the Application for Reservation of Name to prevent rejection due to unavailability.
- Step 2: Complete the Articles of Organization, providing all required member information and professional licensing certificates.
- Step 3: Submit the Articles of Organization along with the required filing fee to the New York Department of State.
- Step 4: Publish a notice of your PLLC formation in two local newspapers for six consecutive weeks, as stipulated in the filing.
- Step 5: Finalize your operating agreement to govern the LLC and define member responsibilities and management.
- Step 6: Apply for a Federal Tax Identification Number to fulfill IRS requirements.
Notarization requirements for this form
This form usually doesn’t need to be notarized. However, local laws or specific transactions may require it. Our online notarization service, powered by Notarize, lets you complete it remotely through a secure video session, available 24/7.
Common mistakes
- Failing to reserve a name prior to filing the Articles of Organization, which can lead to rejection.
- Not including all required licensing certificates from the New York State Education Department.
- Neglecting to publish the notice within the designated timeframe after filing.
- Overlooking the specific wording required in the PLLC name, which must comply with New York regulations.
Benefits of using this form online
- Convenience: Downloadable and easily accessible forms save you time and effort.
- Editability: Forms can be filled out digitally for clear and legible entries.
- Reliability: State-specific forms drafted by licensed attorneys ensure compliance with legal requirements.
Form popularity
FAQ
A PLLC, or professional limited liability company, is a special type of LLC that may only be formed by licensed professionals for the purpose of rendering professional services. While this is not required, doing so can be beneficial for tax, liability, financing, and other reasons.
In most cases, business owners can amend the articles of organization of an LLC to change to a PLLC. For example, the state of Arizona requires that a company complete a form to amend its articles of organization and change the name of the company from LLC to 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.
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.
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.
Individual Reports A partnership PLLC must file a Form 1065, Return of Partnership Income, showing income, deductions and any profit or loss. This is an informational return, and no taxes are assessed. A Schedule K-1 with the form shows each partner's share, to be reported on a personal return.
The difference between a PC and a PLLC is ultimately the same as the difference between a regular corporation and a regular LLC. One major difference is how these entities are taxed.With a PLLC, you can choose to be taxed like a C corp or an S corp, but the far more common option is taxation as a pass-through entity.
Regarding the management flexibility and taxation, a PLLC has the same advantages of an LLC. The difference between the two is that the PLLC has some restrictions on who may be a member of the PLLC and the limitation of liability of the members. With an LLC, anyone can be a member, or owner, of the business.
1Step One) Choose a PLLC Name.2Step Two) Designate a Registered Agent.3Step Three) File Formation Documents with the State.4Step Four) Create an Operating Agreement.5Step Five) Handle Taxation Requirements.6Step Six) Obtain Business Licenses and Permits.
