Wa professional corporation 2025

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Only people who are licensed to provide a professional service may own a PLLC. For example, an unlicensed person cannot own a PLLC that operates as a medical practice, even if they hire licensed physicians as employees.
The Professional Corporation Act defines the term professional service as any type of personal service to the public which requires as a condition precedent to the rendering of such service the obtaining of a license or other legal authorization and which prior to the passage of this chapter and by reason of law
Disadvantages of PLLCs This limits its applicability as a business entity. Second, not all states recognize PLLCs. This can pose challenges for professionals who offer services across state lines. Lastly, establishing and maintaining a PLLC can be costly.
For many small professional service businesses, the pros of a PLLC outweigh the extra hassle. The pass-through tax treatment, liability protection, and credibility of a PLLC can be advantageous. However, if youre unsure of your business ideas or want an easy setup, an LLC may suit your needs.
A PLLC is formed by filing a Certificate of Formation of a Professional LLC with the Washington Secretary of State, Corporations and Charities Division and paying the $200 filing fee.

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Some states, including Washington, may impose limitations on who can own or be a member of a PLLC. For example, only licensed professionals within the same or related fields may be eligible for ownership.
The Certificate of Formation can be filed online or by filing a hard copy with the Washington Secretary of State. The filing fee is $200 if filling online and $180 if filing by mail. The Certificate of Formation will ask for your: Entity name and type (LLC)
One of the differences between an LLC and a PLLC is the extent of the liability protection that each option provides. Specifically, a PLLC has regulations about who can be a member of the business, by restricting membership to only licensed professionals in the field.

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