Professional Limited Liability Company

The Professional Limited Liability Company is also denoted as the Professional L.L.C. It   is a business company that provides limited liabilities to their owners. One or more individuals can come together to form a Professional Limited Liability Company. It is a very flexible type of ownership that is particularly suitable for small companies having limited owners.

A Professional Limited Liability Company is a company wherein the members are engaged to render the professional services. This type of company is a little complex to form as compared to the Limited Liability Company. Formation of this company is a formal process. To form a Professional Limited Liability Company, you are supposed to do the following:

You have to seek all the required permissions and the local, state and federal licenses for forming the company. The articles of the organization have to be filed with the Secretary of the State, specifying the professional services that will be rendered by the company. All the members of the company need to be the licensed members for practicing their profession. Then you will also have to file an application to the State Secretary to reserve the name of your Professional Limited Liability Company. This name should contain the title Professional Limited Liability Company or atleast the abbreviation PLLC for indicating that your business is a Professional Limited Liability Company.

You are required to pay for the filing fees and make preparations and adoptions for operating the agreement. You will have to file a certification that all the members of your company are licensed members to the Secretary of the State. Obtain a registration certificate from the appropriate licensing board and this certificate has to be renewed every year or else it will be considered invalid.

The Professional Limited Liability Company has some advantages like there is no need of a general meeting every year for the shareholders. The board of directors does not loose any of their powers. It has very less record keeping as well as administrative work as compared to the corporation. The profits of the company are taxed personally at every member level and not at the Professional Limited Liability Company level.

But along with these advantages, there is a problem that many times it is very difficult for raising the financial capital for the company. This is because the investors feel safe to invest their funds in a proper corporate rather than any such unkown company. The possible solution for this is that of forming a new corporation and merging into it. Thus, dissolving the Professional Limited Liability Company and getting converted into a corporation.