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LLC vs Professional LLC (PA / PLLC)

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  • LLC vs Professional LLC (PA / PLLC)

    Hello, I am starting a job as an independent contractor in Florida primarily working in an inpatient hospital managing patients and also doing consults. Will a regular LLC suffice or do I need to get a professional (PA or PLLC) LLC for my company? Do most physicians use traditional LLCs or do they get the professional one? Thanks so much for anyone who is able to help!

  • #2
    You don't have a choice. Professionals who must have a professional license to operate in a state must form a PLLC. Here are Nolo's instructions for FL.
    Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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    • #3
      Some additional question you should ask; "Is a PLLC even necessary or desirable?", "Will it save me any taxes?", "Will it really provide liability protection?", are there other reasons why?"

      A single member LLC will probably not save you any taxes and in fact may cost you more when you factor in the FL LLC annual report filing fees. By default it is considered a disregarded entity and you will simply file as a sole proprietorship.

      Contrary to conventional wisdom, an LLC provides little to no liability protection for the professional acts of the owner. So you will still need malpractice and business liability insurance. The same things you would need as a sole proprietor.

      There may be other specific facts and circumstances that justify an LLC, but a sole proprietor will be the best choice in other circumstances. I know one of the tenets of WCI is frugality. I prefer being economical. This means the smallest use of resources.

      You should really invest the modest amount of money ncessary to consult with a FL professional to determine what your best business entity option is. An LLC or  S-Corp is not always your best option.

       

       

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      • #4




        Some additional question you should ask; “Is a PLLC even necessary or desirable?”, “Will it save me any taxes?”, “Will it really provide liability protection?”, are there other reasons why?”

        A single member LLC will probably not save you any taxes and in fact may cost you more when you factor in the FL LLC annual report filing fees. By default it is considered a disregarded entity and you will simply file as a sole proprietorship.

        Contrary to conventional wisdom, an LLC provides little to no liability protection for the professional acts of the owner. So you will still need malpractice and business liability insurance. The same things you would need as a sole proprietor.

        There may be other specific facts and circumstances that justify an LLC, but a sole proprietor will be the best choice in other circumstances. I know one of the tenets of WCI is frugality. I prefer being economical. This means the smallest use of resources.

        You should really invest the modest amount of money necessary to consult with a FL professional to determine what your best business entity option is. An LLC or  S-Corp is not always your best option.
        Click to expand...


        I am so glad you are beating this drum. Cost to set up in FL is $125. Annual report filing fees are $138.75 with an additional $400 penalty if you file after 5/1.
        Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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