Professionals may establish a professional limited liability company (PLLC) in Michigan, among other states. For licensed professionals including doctors, lawyers, accountants, and architects, a PLLC is a particular kind of corporate entity. The PLLC allows licensed professionals to preserve their professional standing while providing the liability protection of an LLC.
How to Create a Michigan PLLC
You must submit articles of organization to the Michigan Department of Licensing and Regulatory Affairs (LARA) in order to establish a PLLC there. The name of the PLLC, its goal, the names and addresses of the members and the registered agent must all be listed in the articles of organization.
Are PLLCs and LLCs the Same Thing?
There are some important differences between an LLC and a PLLC despite certain similarities. The primary distinction between the two is that a PLLC is intended solely for individuals with a license, whilst an LLC can be utilized by any kind of company.
A PLLC is subject to some professional regulations and limits that do not apply to an LLC, which is another significant distinction. For instance, a PLLC might need to get a particular kind of insurance or keep particular paperwork.
Many of the procedures for forming a PLLC are similar to those for forming an LLC. Your PLLC’s name must not already be in use. You must register with the state and acquire any relevant licenses or permissions. Additionally, you must create an operating agreement that describes the governance structure of your PLLC, the duties of the members, and the methods for member addition and removal.
Another type of corporate structure created specifically for licensed professionals is the professional corporation (PC). A PC provides liability protection similar to a PLLC while enabling licensed professionals to keep their professional status.
The way they are taxed is the primary distinction between a PLLC and a PC. A PC is taxed like a corporation, but a PLLC is taxed like an LLC. This indicates that, in contrast to a PLLC, a PC can be subject to double taxes.
For licensed professionals who desire to create a corporate entity that affords liability protection while keeping their professional status, Michigan does require a PLLC. There are some important changes to be aware of, but the procedure for creating a PLLC in Michigan is identical to that of creating an LLC. If you hold a Michigan professional license, you might want to think about creating a PLLC to safeguard your personal assets and keep your license active.
Yes, you can create an LLC without engaging in any business operations. An LLC may be created for a number of purposes, including holding assets, real estate, or intellectual property or for estate planning. It is crucial to remember that the LLC must remain adhere to continuous standards set forth by the state, such as filing yearly reports and keeping accurate records, even if it is not engaging in any business activity.
Any person or group of people may establish a domestic LLC, which is a limited liability corporation, for the purpose of carrying out any permissible business. A domestic professional LLC, on the other hand, is a particular kind of LLC that is created by licensed professionals, such doctors, lawyers, and accountants, who must offer their clients professional services while also benefiting from limited liability protection. Depending on the state in which they are being founded, these two forms of LLCs may have different formation procedures and regulations.