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Is PLLC and LLC the same?

Haman, Esq. A professional limited liability company, or PLLC, is a specialized type of LLC used by certain licensed professionals in many states. A limited liability company, or LLC, is a particular way of organizing the structure of a business.

What is the purpose of an LLC operating agreement?

The LLC operating agreement, also known as an LLC agreement, establishes the rules and structure for the LLC and can help address any issues that arise during business operations. Most states have default provisions that address many of these difficulties, but the operating agreement can override these presumptions.

What is the advantage of a PLLC?

Advantages. Members of a PLLC arent personally liable for the malpractice of any other member. This is a big advantage over a general partnership or sole proprietorship. PLLC members are not personally liable for business debts and lawsuits, such as unpaid office rent.

What is the main difference between a professional and a regular LLC?

The main difference between a LLC and a PLLC is that only professionals recognized in a state through licensing, such as architects, medical practitioners and lawyers, can form PLLCs. The articles of organization are similar to those for a standard LLC, but extra steps are necessary to file.

What should an operating agreement include?

The functionality of internal affairs is outlined in the operating agreement including but not limited to: Percentage of members ownership. Voting rights and responsibilities. Powers and duties of members and managers. Distribution of profits and loses. Holding meetings.

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