PLLC - Professional Limited Liability Companies
One or more persons duly licensed or otherwise legally authorized to render certain professional services may become members of a professional limited liability company (“PLLC”) for the purpose of rendering the same or compatible professional services. Professional services for which a PLLC may be formed are the services rendered by attorneys-at-law, physicians and podiatrists, dentists, optometrists, accountants, veterinarians, architects, osteopathic physicians and surgeons, chiropractors, psychologists, social workers, and land surveyors.
No PLLC may have as a member anyone other than a person who is duly licensed or otherwise legally authorized to render the professional services for which the PLLC was organized. PLLCs may form, own and operate separate LLCs.
Establishing a PLLC does not alter or affect the professional relationship between the individual furnishing professional services and a person receiving that service either with respect to liability arising out of that professional service or any confidential relationship between the individual rendering and the individual receiving the professional services. However, the members of a PLLC do receive limited liability for any debts or claims against, or acts or omissions of the PLLC or of another member, manager, agent or employee of the PLLC.
Unless the specific provisions governing PLLCs provide otherwise, the provisions of the Act governing regular LLCs also apply to PLLCs. The name of a PLLC must contain the words “professional limited liability company” or the abbreviation “P.L.L.C.”, “PLLC”, “Professional L.L.C.” or “Professional LLC.” A PLLC is required at all times to carry at least $1 million of professional liability insurance or otherwise provide at least $1 million of segregated funds (e.g. bank escrow, certificate of deposit, bank letter of credit or insurance company bond) which shall insure the PLLC and its members against liability imposed upon the company or an of its members arising out of the performance of professional services to patients or clients of the PLLC by any of the members or professional or nonprofessional managers or employees of the PLLC.
- Jessica R. Alsop and Robert G. Tweel
Jackson Kelly PLLC
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