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Professional limited liability company

Professional limited liability company 2025

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The document outlines the formation and operation of a Professional Limited Liability Company (PLLC) for licensed professionals in Washington State. It details the requirements for organizing a PLLC, including licensing stipulations for members and managers, steps to file necessary forms, and guidelines for creating an operating agreement. The document also covers management structure, member contributions, voting rights, liability limitations, and procedures for membership transfer and dissolution.

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What are the disadvantages of a PLLC?

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.

What is the difference between LLC and professional LLC?

A primary advantage of a PLLC is the protection it offers against personal liability. In other words, members of PLLCs are not personally responsible for paying business debts or taxes that their PLLC may owe. Their personal assets, like homes and cars, typically remain shielded.

What is a professional limited liability company in Michigan?

Professional LLC Definition. A Professional Limited Liability Company (PLLC) is a type of business structure that offers limited liability protection to professionals, such as doctors or lawyers, while allowing them to operate as a group and provide professional services. Professional LLC Benefits.

What is a professional limited liability company?

What Is a Professional Limited Liability Company? A professional limited liability company (PLLC) is a business entity. This entity is designed for professionals like doctors, lawyers, accountants, architects, and therapists. These professionals offer services like medical services, legal services, and more.

What is a professional LLC in Michigan?

A Michigan PLLC refers to any limited liability company that is formed by founders who intend to provide licensed professional services in the state of Michigan. Any licensed professional in the state of Michigan can structure their business as a Michigan PLLC. This provides protection from multiple types of liability.

What are the benefits of a PLLC?

A PLLC protects its members from certain actions of other members of the PLLC. If one partner is sued by a client or customer for malpractice or negligence, the resulting action cannot impact every member of the PLLC. Each professional is independently liable.

Professional limited liability company 2025

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