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A medical practice can be setup with a PLLC.
A professional limited liability company protects its owners from personal liability for business debts.Many states don't allow licensed professionals to create a regular limited liability company, so the PLLC was created for them.If you pay a filing fee, you can set up your medical practice.
Step 1: You can choose a business name.
If you base your name on the names of the owners, you can create a fake business.If you check your state's laws, you can see what words are required.You must include the words "Professional limited liability company" or an abbreviation in most states.
Step 2: Check if the name is available.
It is not possible to use a business name that is already being sued.The Secretary of State has a database of business names.
Step 3: Do you know if your state permits PLLCs?
Professionals are not allowed to form a PLLC in some states.You may be able to form a regular limited liability company or a different business form.Check with the Corporations Department.California only allows professionals to form a limited liability partnership or professional corporation.
Step 4: You can find fill-in-the-blank forms.
It's easy to fill out forms in most states.The forms can be downloaded from the Secretary of State's website.
Step 5: Provide some basic information about your business.
Basic information about your PLLC can be requested by most states.It's the location of your primary office.You will mostly practice in the county.You can practice throughout the state, but you still have to identify the location where you will perform most of your work.
Step 6: What services will you provide?
A brief statement of the services you will provide is what some states will ask for.You don't need to go into great detail, but you should mention your profession.
Step 7: Do you have a registered agent?
If you are sued, your agent will accept legal papers on your behalf.Do you know your agent's address?Each state has its own requirements for who qualifies as an agent.You can name the PLLC, a member, or a private company that you pay to act as your agent.
Step 8: The original members were named.
The owners are the members.Only licensed professionals can be members.You will be asked to give your name and address in the articles of the organization.
Step 9: How long will the PLLC last?
You can state a number of months or years.If necessary, you can shut down your company early if you need to.If you want to continue beyond the end date, you will need to amend your articles.You can save yourself a lot of trouble if you say you want to operate continuously.
Step 10: The management structure should be identified.
PLLCs can be managed by either a member or a manager.You might be asked to identify which structure you will follow.All members manage the business.Unless you choose otherwise, most states have member-managed PLLCs.If you have some members who don't want to be involved in the management of your business, a manager-managed PLLC is ideal.
Step 11: The articles of organization should be signed by you.
The articles must be signed by at least one of the organizers.The person must be a licensed professional in some states, but not in others.
Step 12: Receive approval from your licensing board.
Before you submit your articles to the state, you might need your state's licensing board to sign off.Check the board.
Step 13: You should file your articles.
You can either file online or submit paper articles of organization in person.Check with your Secretary of State.You should keep a copy of the articles for your records.
Step 14: You have to pay the filing fee.
The amount can be checked with the Secretary of State.The filing fee in New York is $200.The filing fee in Oklahoma is $100.You can pay with a credit or debit card if you file online.You can pay with a check or money order if you file through the mail.
Step 15: You should publish notice of your organization.
You need to publish your intent to form a PLLC in some states.You can find the names of newspapers by contacting either the Secretary of State or your county clerk.How long must the notice be published?After all notices have been published, the newspaper will need to submit an affidavit of publication to the county clerk.
Step 16: An operating agreement should be drafted.
This is the operating manual of your business.You don't need to file it with your state, but you should keep it in your office.Each member's percentage ownership in the PLLC should be included in an operating agreement.The members have their rights and duties.The voting powers of the members.You can either give each member an equal vote or weight their votes according to their ownership percentage.How profits and losses will be divided.You can come up with your own percentage.The rules for taking votes and holding meetings.If one member dies, retires or becomes disabled, there is a buy-sell agreement.
Step 17: Obtain an employer identification number.
To open a bank account and hire employees, you need a federal tax ID.If you want to apply for an employer identification number, you need to obtain your EIN.The service is free.
Step 18: You need a business license.
Check to see if you need a business license.The form should be filled out.
Step 19: You should open a bank account.
You should have a bank account for your business.To open the account, take your EIN and articles of organization to the bank.Tell the bank who can sign on the account and if two people will need to sign to withdraw large amounts.
Step 20: Medical professional liability insurance is needed.
You won't be protected from medical malpractice lawsuits for your own carelessness.You should have an acceptable insurance policy.Check with your state's Department of Insurance to see if they license certain insurance providers.
Step 21: You can pay federal tax in a number of ways.
The IRS does not recognize limited liability companies.You have to decide how you want to be taxed at the federal level.A single-member PLLC will be taxed as a sole proprietor.You can choose to be taxed as a corporation.A group of people will be treated as a partnership.You can choose to be treated as a corporation.If you don't know which to choose, consult with an accountant or a business lawyer.
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