The initials “PLLC” must be present in the company name in the majority of states; failing to do so may have legal repercussions. This is so because PLLCs are created especially for professionals whose line of business necessitates a certain level of liability protection. It is made evident to customers and potential customers that the company is a professional organization and not just an ordinary LLC by using “PLLC” in the name.
California, for example, does not mandate that PLLCs have “PLLC” in their name. Instead, “Professional Corporation” or “Professional Association” must be included in the name of PLLCs according to state law.
It’s crucial to pick a name for your PLLC that appropriately describes the type of business you run and the services you offer. A law firm PLLC, for instance, might select a name that include the names of the founding partners, whereas a medical practice PLLC might select a name that incorporates the kind of medicine performed.
PLLCs give professionals liability protection, but they are not without drawbacks. One of the biggest drawbacks is that the Internal Revenue Service (IRS) does not recognize PLLCs as separate tax entities. Owners of PLLCs must, therefore, pay self-employment taxes on their business income, which can be a considerable financial burden.
In contrast, some professionals could decide to create a S company rather than a PLLC. S corporations similarly provide liability protection, but because the IRS views them as a distinct tax entity, owners are not required to pay self-employment taxes on their business revenue. S corporations do, however, come with a unique set of drawbacks, such as more complicated tax filing procedures and limitations on the number and categories of stockholders.
In conclusion, although though the use of “PLLC” in a company name or logo varies from state to state, it is generally a good idea to do so to let customers and future customers know that the business is professional. It’s crucial to think about the services offered and pick a name for a PLLC that appropriately describes the company. Liability protection is a benefit of PLLCs, but there are also some tax drawbacks that should be carefully examined before founding the firm. Instead of paying self-employment taxes, professionals might decide to set up a S corporation; however, they should be aware of the additional requirements and constraints that come with this business type.
American lawyers use the title “Esquire,” which is abbreviated as “Esq.” On business cards, letterheads, and other official documents, it is often written after a lawyer’s name.
The legal organization known as a PS, or “Professional Service Corporation,” enables lawyers to incorporate their practices and reduces their personal accountability for the firm’s debts and responsibilities. Attorneys who sign their names with “PS” do so to indicate that they are employed by a Professional Service Corporation.