What is a PLLC?
A PLLC is a type of LLC only available to those recognized by the state as “professional service providers.” As the name suggests, an LLC limits the liability of business owners by helping protect their personal assets from business debt collectors, personal injury claims, and other such cases. However, some jurisdictions do not allow licensed certain professionals to form an LLC. As a result, states have begun introducing PLLCs that offer similar liability protection to licensed professional service providers.
Which Professions Can Form a PLLC in Florida?
To determine which professions can form a PLLC in Florida, it’s important to clarify what Florida defines as “professional services.” According to the Professional Service Corporation and Limited Liability Company Act, “professional services are services performed for the general public that requires licensing or legal authorization” (Fla. Stat. § XXXVI.621.03). Typically, this includes professionals that provide medical care, legal advice, and other services that require licensing by state regulatory boards.
Here are some of the common professions that qualify according to state statutes:
- Architects
- Public accountants and CPAs (certified public accountants)
- Attorneys and licensed legal professionals
- Medical professionals (e.g., surgeons, osteopathic doctors, dentists, chiropractors, and podiatrists)
- Some types of engineers and architects
- Life insurance agents
- Veterinarians
Keep in mind that the definition of professional services is pretty broad. As such, the above list isn’t comprehensive, and what counts as professional services is subject to change as state laws and regulations evolve. To find out if your specific field or industry benefits form forming a PLLC, it’s best to seek the counsel of a licensed professional.
For expert guidance in forming your PLLC, you can order our registered agent service and then hire us to form your PLLC from inside your online client account. From there, our local experts take care of everything to make sure your PLLC is set up the right way.
What’s the difference between a Florida PLLC and a Florida LLC?
What primarily distinguishes a Florida PLLC from an LLC is the extent of liability protection offered and the amount of paperwork needed to form your company. For the most part, PLLCs involve fields that affect people’s health, finances, and well-being. That’s why the state holds PLLCs to a higher standard in at least two key ways:
- Additional paperwork. In addition to the standard LLC formation documents, you’ll need to provide licensing credentials to the Secretary of State in order to officially register your PLLC.
- Liability protection. PLLCs receive liability protections similar to LLCs. However, in cases such as malpractice claims, a PLLC member may be held personally liable.
One noteworthy advantage to a PLLC for licensed professionals is that PLLC members can’t be held liable for malpractice claims against other members. The company’s finances remain at risk, and the member charged with malpractice can be held personally liable. But the PLLC does offer that personal asset protection for the other PLLC members not subject to such charges.
Aside from that, Florida PLLCs and LLCs have a lot in common. They share the same type of structure, requirements, and benefits. You just have to submit your licensing credentials and be mindful of the fact that liability protection works a bit differently for PLLCs