If you are a partner in a professional business or have a private practice, it is important to structure the organization in a manner that will help shield you from liabilities.
Common business entities to consider include a partnership, LLC (limited liability company) or sole corporation. These entities offer some protection but may not extend to your professional license. In this case, there’s a fourth option – the professional limited liability corporation (PLLC).
Understanding the PLLC and what it offers for your professional license
The PLLC can protect your professional license if you are in business with one or more people.
An example will be if you work as a doctor in a private medical office with two partners. If one of the partners makes an error, the PLLC structure will protect you from being impacted by a malpractice claim.
If you did not participate in your partner’s wrongdoing, the injured person could not include you in the lawsuit. Since you aren’t involved in the claim, it should not risk your professional license.
Those are not the only protections offered by a PLLC structure. It also helps protect your personal assets, provides flexible taxing options for your business, ensures minimal compliance regulations and is easy and affordable to establish.
Not all businesses can use a PLLC. Some that can include law professionals, psychologists, chiropractors, healthcare providers, dentists, optometrists and veterinarians. It is important to consider this option to add a layer of protection to your business and professional license.
Protecting your professional license
Knowing how to protect your professional license is important. If it is threatened, you have legal options to explore to help you avoid losing it or help you restore it.