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What is the benefit of a PLLC?

A PLLC offers many advantages for the lone professional \u2014 a major one being that it separates the owners from the entity, and protects them from most forms of personal liability. This means in many cases of company debt, negligence, and the like, only the PLLC is held accountable, not the individual owners.

How do you form a PLLC in Tennessee?

Forming a PLLC in Tennessee (in 6 Steps) Step One) Choose a PLLC Name. ... Step Two) Designate a Registered Agent. ... Step Three) File Formation Documents with the State. ... Step Four) Create an Operating Agreement. ... Step Five) Handle Taxation Requirements. ... Step Six) Obtain Business Licenses and Permits.

What is the difference between an LLC and a pllc?

With an LLC, anyone can be a member, or owner, of the business. State PLLC laws often provide that only licensed professionals can be members, or that a certain number of members must be licensed professionals. A PLLC cannot be used to shield the members from claims for malpractice.

Does Tennessee have PLLC?

As a licensed professional in Tennessee you can structure your business as a Tennessee professional limited liability company (PLLC). This will give you protection from several important types of liability. It also may provide certain tax advantages compared to other ways of structuring your business.

What are the benefits of a PLLC?

Advantages 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.

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