A Professional Limited Liability Company (PLLC) is a legal business entity structure that is designed specifically for professionals in certain fields, such as doctors, lawyers, architects, engineers, accountants, and similar professionals who require a state license to practice their profession. Similar to a limited liability company (LLC), a PLLC offers limited liability protection to its owners, known as members, shielding them from personal liability for the company's debts or liabilities.
The PLLC structure combines the limited liability features of an LLC with the professional licensing requirements imposed on certain professions. Unlike other forms of business entities, a PLLC typically requires its members to hold professional licenses and adhere to professional standards within their field.
The specific formation and operation requirements for a PLLC may vary by jurisdiction and professional industry regulations. Generally, PLLCs need to meet specific state-level requirements, such as maintaining the necessary licenses and certifications, and ensuring that all members are professionals authorized to practice their respective professions.
As a distinct legal entity, a PLLC can enter into contracts, hold property, sue or be sued, and engage in various business transactions. The personal assets of the members are generally protected, and their liability is limited to the amount they have invested in the company, unless they personally guarantee a debt or engage in fraudulent or illegal activities.
