Limited liability companies (LLCs) and professional associations (PAs) are two typical company forms that provide particular advantages to entrepreneurs. Unlike LLCs, which are frequently selected by small business owners who seek to limit their personal responsibility, PAs are typically created by professionals, such as doctors and lawyers, to deliver services to clients. So, in Florida, can a PA also be an LLC? No, is the response.
PAs are a particular class of professional corporation in Florida and are governed by the Department of Business and Professional Regulation (DBPR). They must adhere to particular regulations, such as having a board of directors, special licensing requirements, and specified ownership limits, and are governed by Chapter 621 of the Florida Statutes. In contrast, LLCs are governed by Chapter 605 of the Florida Statutes and are typically simpler to set up and keep in good standing.
There are various procedures you must complete in order to establish a PA in Florida. You must first select a name for your PA that is unique and not in use by another company. On the Division of Corporations website of the Florida Department of State, you may see if the name you want is available. After deciding on a name, you must submit Articles of Incorporation to the Florida Department of State together with the required filing fee.
The DBPR will then need to issue any appropriate licenses or permits to you. This could apply to basic company licenses and permits as well as professional licenses, such a medical or legal license. To get a sales tax permit and pay any required taxes, you might also need to register your business with the Florida Department of Revenue.
However, Florida makes it typically simpler to form an LLC. You must select a name that is available and submit Articles of Organization to the Florida Department of State in order to establish an LLC. Additionally, you must appoint a registered agent who will pay the filing fee and accept legal documents on your LLC’s behalf.
In conclusion, even though PAs and LLCs have different advantages for business owners, they are not equivalent in Florida. A PA might be your best option if you’re a professional wishing to offer services to clients, whereas small business owners might prefer to create an LLC. Whichever business structure you decide on, it’s critical to take all the necessary precautions to make sure your operation is legally registered and complies with all rules and regulations.
In Florida, professionals like doctors, lawyers, and accountants frequently use a sort of corporate company called a PA, or professional association. It is a unique kind of corporation created to offer its owners specific legal protections and tax advantages.
“Power of Attorney,” a legal document that permits a person or organization to act on behalf of another in a variety of property-related concerns, is what is often referred to as “PA” in the context of real estate.