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Professional association vs LLC?

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  • Professional association vs LLC?

    Hello all. ER Doctor Independent contractor here. Was going to make an LLC with a professional for my 1099 work with a group. They recommended becoming a Professional association (PA).
    I live in Texas and mainly wanted to make the LLC to be taxed as an S Corp as it saves me about $5k in taxes a year with my distributions. What would you all recommend I do? Continue with the LLC or is there anything special to bring a PA? Thanks so much.

  • #2
    My understanding is they are basically the same thing.  I believe PA can also be taxed as an s-corp.  There is some state variability in terminology.  There is also PLLC in some states for instance..  Perhaps someone in TX will weigh in.

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    • #3
      The main difference between PLLCs and PAs in Texas is that PAs are limited to doctors and PLLCs encompass other professionals who must have a license to operate in TX (CPAs, for example). You can elect s-status with either so it's not going to really make a difference. You are hearing "PA" because that is what most TX doctors are familiar with. Just continue with the PLLC (not LLC) if you've already started the process .
      Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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