If you own or are a partner in a professional business, you want to structure your organization in a way that protects you from liability. Examples of business entities to choose from include:
- A limited liability company (LLC)
- A partnership
- A sole corporation
These entities offer protection, but they may not help when you want to protect a professional license. In Pennsylvania (and several other states), you have one more business entity option at your disposal.
The Professional limited liability corporation (PLLC)
A PLLC may protect your license in businesses involving more than one owner. For example, say you are a doctor in a private medical office with two partners. If one of the partners makes a medical mistake or engages in other wrongdoing, your PLLC can protect you from a malpractice claim.
When you did not play a role in the wrongdoing of a partner, the wronged party cannot include you in a medical malpractice lawsuit. Since you are not involved in the claim, it will likely pose no risk to your professional license.
Other benefits associated with a PLLC include the following.
- Protection of personal assets
- Minimal compliance regulations
- Inexpensive and easy to set up
- Flexible business taxing options
You can get the benefits above with an ordinary limited liability company, but you will not improve your malpractice protection without a PLLC.
Unfortunately, not all businesses qualify for a PLLC. Below are several examples of professionals that are eligible for PLLC protection.
- Chiropractors
- Optometrists
- Law professionals
- Dentists
- Healthcare providers
- Veterinarians
- Psychologists
Learning more about business law and license protection can ensure you take the proper steps in creating a PLLC. Guidance from a legal advocate can also help.