For professionals who desire to create a corporate company, there is a sort of LLC called a Professional Limited Liability Company (PLLC). Articles of incorporation must be submitted to the State Corporation Commission (SCC) in Virginia in order to form a PLLC.
A PLLC affords the same protection of personal assets from company obligations as a regular LLC. PLLCs, on the other hand, are particularly made for licensed professionals who are obliged to hold a license in order to offer their services. These experts include, among others, attorneys, accountants, physicians, and architects.
The articles of organization must specify that the business is a professional limited liability company in order to create a PLLC in Virginia. The purpose of the company, the names of the members, the name and address of the registered agent, and the name of the company must all be included in the articles.
The operational agreement is the internal document that specifies the regulations controlling the company’s operations, whereas the articles of formation establish the PLLC’s legal existence. The operational agreement is a legally binding document that describes the rights and obligations of the members, how profits and losses will be distributed, and how the company will be handled; it is not submitted with the SCC.
It’s crucial to understand that operational agreements and articles of organization are two different documents. Operating agreements regulate the internal operations of the company while the articles of organization establish its existence.
Similar to how an LLC is a distinct form of corporate entity with its own set of laws, an Inc (short for corporation) is another. Although Incs must submit their articles of formation to the SCC, they are exempt from the requirement to establish operating agreements. They instead have bylaws that resemble an operating agreement for an LLC or PLLC.
To sum up, a PLLC is a particular kind of LLC made for licensed professionals. It gives flexibility in terms of management and taxation while protecting personal assets. Operating agreements regulate the internal operations of the company, whereas the articles of organization constitute the legal existence of the corporation. The operating agreement is replaced by bylaws in an Inc, a different sort of company entity that is subject to different laws and restrictions than an LLC.
In Virginia, an LLC is permitted to have more than one operating agreement. An LLC’s ownership and operational policies are described in an operating agreement, a legal document that may be changed or modified as necessary. It’s crucial to check that the various operational agreements are all enforceable and do not contradict with one another. To make sure that the legal requirements are being met in Virginia, legal counsel is advised.
The owner of an LLC is disclosed in the LLC’s formation documents, such as the Articles of Organization, which are submitted to the state, and is a matter of public record. Additionally, several jurisdictions demand that LLCs submit an annual report that include the members’ names and addresses.