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Helping Professionals Select the Right Business Entity and Start Successful Companies
Business owners who offer professional services have additional options that other businesses don’t have in New York. This gives professionals a wider range of options to choose from, making it even more complicated to structure your company without the help of a PC and PLLC formation attorney in New York. Once you decide which business entity to use, you must pay the proper filing fee and submit the required documents, including shareholder information or an operating agreement, depending on which business structure you use.
Start a Professional Business
When starting a business, you need to know that skilled legal professionals are on your side to comply with New York law as you start your professional limited liability company or professional corporation. Your lawyer can help you select a business name, find a registered agent, and gain certain tax advantages available for New York PLLCs. Call an experienced attorney like those at Fisher Stone, P.C. today to learn more about maximizing your business income and streamlining your operations.
We offer a free consultation, so you have nothing to lose by contacting us at 516-908-9519.
New York PLLC and PC
In business law, PLLC (Professional Limited Liability Company) and PC (Professional Corporation) are two common structures for professionals offering licensed services. Both entities provide personal liability protection, meaning owners aren’t personally responsible for business debts or legal claims, helping shield personal assets. A PLLC operates like a traditional LLC but is restricted to licensed professionals. It allows for flexible management and tax options, such as pass-through taxation, where business income is reported on individual tax returns.
A PC, on the other hand, functions more like a corporation, with a more rigid structure and distinct tax regulations. PCs require formalities like shareholder meetings and a board of directors. They also have the option to retain earnings within the business, which can reduce the individual tax burden on the owners.
What Are the Benefits of Starting a PC?
Some licensed professionals seek the benefits and protection of owning a corporation but do not want to go through the hassle of forming an S-corp or C-corp. In these cases, it is possible for individuals in service professions to form professional corporations, also known as a PC. PCs are taxed at a flat rate, which can be much higher than the self-employment tax rate for a New York PLLC.
A PC has unlimited deductions, meaning the business can reduce the amount of taxable income, making this a strategic choice for some individuals. On the other hand, PCs do not offer the same liability protection as New York PLLCs, and owners could be subject to double taxation.
Eligible Licensed Professionals
Licensed professionals in the following practice areas may be eligible for starting a PC in New York City:
- Medicine
- Dentistry
- Optometry
- Chiropractic
- Veterinary services
- Professional engineers
- Pharmacy
- Mental health services
- Law
- Nursing
- Social work
The New York State Department may also permit other professionals to conduct business through a PC. You should speak with a trusted legal professional about your goals and circumstances to learn if starting a PC is right for you.
How Does a PLLC Work?
Starting a professional limited liability company in New York is usually a more straightforward process than creating a corporation, including a PC. Individuals in licensed professions may open a service limited liability company by submitting the proper documentation, including articles of organization and an operating agreement. The professional LLC must have a business name that complies with New York Department laws, but these business entities do not require shareholders, regular meetings, or the other structural components of a corporation. The company must also pay the annual filing fee and provide the current business address annually to the proper New York Department.
PLLC Benefits in NY
A PLLC in New York offers many benefits, including:
- Greater personal liability protection
- Simpler business structure
- Fewer legal documents upon start-up
- Pass-through taxation
- Multiple owners are permitted to own one New York PLLC
One of the most important benefits of forming limited liability companies is the liability protection these business entities offer. Similar to a standard LLC, PLLC members are protected from liability in the form of creditors and lawsuits that have nothing to do with your own malpractice. However, a professional limited liability company does not protect PLLC members from cases of malpractice or assault that arise against them. They may also be held personally liable for business loans.
Why Should I Hire a Lawyer to Help Me Start a Business?
With the nuances of structuring your new business in New York, it is important to have an experienced business attorney helping you make these critical decisions. Your lawyer can advise you on whether starting a PC, PLLC, or other entity makes sense in your unique situation. An attorney can also let you know whether your profession qualifies as a professional service limited liability company.
Once you have chosen the business entity you want to use, a PC & PLLC lawyer like those at our law firm can assist you with fulfilling the legal requirements necessary to get started. We can assist you with forming PLLC articles of organization and writing an operating agreement that ensures your business operates smoothly for years to come. We can also help you get an employer identification number and file your taxes to minimize your tax burden. Call now to learn more about our PLLC formation services in a free initial consultation.
Should You Hire Our PLLC & PC Formation Attorneys?
Starting your professional organization can be exciting but also overwhelming. New York requires many specific laws to be fulfilled when starting a New York PC or PLLC. When you hire Fisher Stone, P.C., you can get the help you need to start your New York PLLC so you can begin offering professional services and seeing the success of your company as soon as possible. We can help you overcome the legal hurdles to starting a professional limited liability company and ensure the legal validity of your company from day one.
How Our Firm Can Help
Working with Fisher Stone, P.C. for your PLLC or PC formation in New York offers several advantages for licensed professionals. We streamline the entire process, ensuring compliance with state laws while minimizing paperwork and delays. Our team thoroughly reviews your business goals to determine whether forming a professional corporation or New York PLLC best suits your needs. We handle every step, from preparing and filing formation documents to advising on tax benefits and liability protection. With our team, you gain confidence in knowing your business is structured properly, allowing you to focus on providing your services without legal distractions.
Speak With Our Team Today
Don’t delay any further. We offer a free consultation, so you have nothing to lose by contacting our law firm about our PC and PLLC formation services. We have helped countless clients get expedited processing and get the PLLC structure they need. Most professions qualify for a New York PLLC, but you should speak with our legal team first before taking any steps toward starting a business.
Call us right away at 516-908-9519 to talk with our caring, capable legal team.