By: Chase Howard
In most cases, the limited liability company, or LLC, is the preferred business structure for a wide variety of healthcare businesses. If you’re a licensed professional, you can also use the professional limited liability company, or PLLC for your healthcare practice or business. While generally these two entity types are the same, there’s a small difference to be aware of when organizing the company.
The PLLC is reserved for licensed professionals only. This includes physicians, dentists, nurse practitioners, pharmacists, veterinarians and others. It also includes accountants, engineers and other licensed professionals. But what if you, a licensed healthcare professional, is going into business with family member, a licensed accountant? While it seems like the PLLC is the right choice, it actually is not appropriate. In Florida, PLLCs must declare their professional purpose and they can only list one, which is based on the owners’ licenses. This means that a PLLC must have all of the same licensed professionals as members in order to qualify as a PLLC.
If there is member that is a different professional, then the appropriate entity is the LLC. In all cases, Florida LLC law will apply.