In New York, licensed professionals generally cannot conduct the business of their professions through the corporation, LLC or limited partnership. These professionals conduct business through “professional service” forms of those entities: the professional service corporation (PC), professional service limited liability company (PLLC) or the registered limited liability partnership (LLP). Alternatively, professionals can operate as sole proprietors or general partners.

While a professional service company offers professionals liability protection from business obligations, it is important to remember that licensed professionals can be personally responsible for the rendering of their professional services. This is why doctors pay so much for malpractice insurance. However, a professional service company also protects a licensed professional from the personal responsibilities of other licensed professionals in their business.

If you plan to conduct the business of one of the professions below, you may want to form a professional service company. James Hsui, PLLC is here to help.