Professional Limited Liability Company (PLLC)

Setting up Professional Limited Liability Company

Trial attorneys have strongly opposed the use of LLCs by licensed professionals, such as doctors, accountants, architect, and engineers. As a result, state laws do not allow licensed professionals to operate their professional practices as an LLC. Some states have adopted and allow licensed professionals to operate as a Professional Limited Liability Company (PLLC). While the PLLC can be used by a professional to isolate himself from the liability of other partners, it does not limit his personal liability for malpractice. In other words, even with a PLLC, all of the assets held in your name can be taken to satisfy a judgment against you for malpractice. Thus, it is very important for professionals to have practice assets (building, equipment, etc.) and personal assets (home, cash, art, stocks, etc.) in LLCs and/or FLPs, so in the event of a malpractice lawsuit, your business and personal assets will be protected from seizure and unaffected by the lawsuit.