No, LLCs and PLLCs are not the same thing, to put it briefly. Although both offer their owners some limited liability protection, PLLCs are intended specifically for credentialed professionals like doctors, lawyers, and accountants. PLLCs must adhere to additional rules and limitations that do not concern standard LLCs. Only licensed professionals may form PLLCs in some states.
Limited Liability Partnerships (LLPs) are another type of corporate entity that are frequently mistaken with LLCs. The primary distinction between the two is that while LLCs can be owned by one or more people, LLPs are meant for companies that operate as partnerships. LLPs also provide limited liability protection for its owners, albeit state-specific tax laws and regulations may apply. How can I set up an LLP in New Jersey? You must submit a Certificate of Formation to the New Jersey Division of Revenue and Enterprise Services in order to establish an LLP there. The partnership’s name, the names and addresses of its participants, and a declaration that the partnership will function as an LLP must all be included on the certificate. Additionally, you will need to get any licenses and permits your firm may require. How do you establish a partnership in New Jersey? In order to establish a partnership in New Jersey, no formation paperwork needs to be submitted to the state. However, it is advised that you establish a partnership agreement that specifies the conditions of the partnership as well as the obligations and privileges of each partner. Additionally, you should get all licenses and permits required for your firm.
Although operating agreements for LLCs are not required in New Jersey, it is strongly advised that you draft one. A legal document known as an operational agreement spells out the organization’s ownership and management structure as well as the duties and rights of each member. In the event of any legal concerns, it can assist clear up confusion and prevent disagreements.
Conclusion: Although LLCs, PLLCs, and LLPs provide their owners with limited liability protection, they are different sorts of business entities, and as such, they are subject to different laws and limitations. Before determining what kind of corporation to incorporate, business owners should carefully weigh their options and speak with a legal or financial expert.