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Helping Professionals Select the Right Business Entity and Start Successful Companies
Choosing the correct entity for your new or growing business is crucial. When you pick the right business structure, you give your company a head start and the best chances of success. Having the proper business entity can also ensure you can manage and control your business as you wish. Furthermore, the business entity you choose impacts how you earn money and how you are taxed.
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.
Fulfilling the New York PLLC requirements can be complicated and overwhelming. However, you don’t have to go through this complex process alone. You can rely on our PLLC formation service to get through the process quickly and easily. We’ll also advise you on the best entity for your unique situation to make the most of your management style and tax consequences. Call our business law firm to schedule your free consultation at 516-908-9519.
What Should I Know When Starting a Professional Business?
When starting a business, you might feel overwhelmed by the many decisions that need to be made. You may want to get started quickly so you can begin offering your service and product to customers and start making money. However, you should be aware of legal implications that could put your new company at risk. The good news is that skilled legal professionals can stand by your side to help you comply with New York law as you start your professional limited liability company or professional corporation.
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.
On the other hand, a PC 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.
Your lawyer can help you select a business name, find a registered agent, and gain certain tax advantages available for New York PLLCs. An experienced attorney like those at Fisher Stone, P.C. can help you learn more about maximizing your business income and streamlining your operations. Contact our attorneys immediately for more information about the PC and PLLC formation process and to get started!
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-corporation or C-corporation. In these cases, individuals in service professions can form professional corporations, also known as a PC. Keep in mind that PCs are taxed at a flat rate, which can be much higher than the self-employment tax rate for a New York PLLC.
While the tax situation may seem less ideal at first glance, it is important to note that 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.
If you aren’t sure whether a professional corporation or professional limited liability company (PLLC) is right for you, please get in touch with our business law firm right away. We can analyze your current situation, business type, and personal goals to get you the entity that provides the protection and flexibility you need.
What Professionals Are Eligible for Forming a Professional LLC?
Only certain licensed professionals may be eligible to start a PC in New York City. If you plan to provide professional services in New York, you might be eligible to start a PC or PLLC.
Some examples of professions that could potentially form a PC or PLLC include:
- Medicine
- Dentistry
- Optometry
- Chiropractic
- Veterinary services
- Professional engineers
- Pharmacy
- Mental health services
- Law
- Nursing
- Social work
The New York State Department may occasionally 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. Our knowledgeable legal team is standing by to discuss your future company and see how we can help, including getting you approved for a professional company, so call us today!
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.
Once formed, the PLLC operates under many of the same rules and regulations as an LLC. The professionals who own the PLLC will be protected from lawsuits affecting their personal assets. In addition, each member of the PLLC is shielded from malpractice suits that come against their partner, making the PLLC an excellent choice for those in service professions like medicine.
Reach out to an experienced business formation lawyer at our law firm for answers to questions and help to form your PLLC. We are dedicated to providing excellent services for our clients and promise to fight for your best interests throughout the business formation process.
What PLLC Benefits Are Unique to NY?
The laws governing PLLCs vary depending on your location. For example, filing for PLLC takes place with the State of New York. A PLLC in New York also offers some unique benefits that may not be found in other locations.
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 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. Like a standard LLC, PLLC members are protected from liability in the form of creditors and lawsuits that have nothing to do with your 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 essential 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 tell you 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.
What Other Business Entities Could I Use for My New York Company?
Starting a professional LLC or professional corporation can be ideal in many situations. However, what should a business owner do if they do not qualify for a PLLC or do not wish to form a professional company? Many options can be used to meet each person’s individual circumstances. Speaking with a business law firm is one of the best ways to make the right choice for your company’s structure.
Some business entities you can choose from in New York include:
- Sole proprietorship – In a sole proprietorship, one owner retains control of the entire company. While this makes for a simple business structure that is easy to form and control, it also opens up the individual to attacks on their personal assets and property in case of debtors or lawsuits.
- Limited liability company – An “ordinary” LLC is ideal for many business owners looking for a simple business structure that offers asset protection. Those forming an LLC in New York must still go through the appropriate application process, including submitting an operating agreement and choosing a designated agent.
- Corporations – Corporations are ideal for individuals seeking a business entity that lends credibility and ease of fundraising. However, please keep in mind that corporations, including S-corporations and C-corporations, come with complex requirements that may intimidate new business owners.
When you are ready to start your New York company, please reach out to our skilled team of business lawyers. We can advise you on choosing a business structure that meets your needs. We’ll also stand by your side as you navigate the business planning and formation processes.
Should You Hire Our PLLC Formation Attorneys in NYC?
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 and 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.
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 adequately structured, allowing you to focus on providing your services without legal distractions.
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 before taking any steps toward starting a business.
Call us immediately at 516-908-9519 to talk with our caring, capable legal team.