Professionals in New York State who are licensed by the New York State Education Department, Office of the Professions can structure their businesses as a professional corporation (PC) or a PLLC. Both structures provide certain liability protections through the legal separation of business and personal assets. 

As a corporation, a PC has more rigid formation and operating requirements than a PLLC, including bylaws and a board of directors.

From a technical perspective, a PLLC is not a corporation. It consists of one or more owners who are called members. By default, PLLCs and LLCs are taxed as pass-through entities, meaning that the business itself isn’t taxed on profits before they’re distributed to the members, who then pay taxes on their share of the profits on their personal tax returns. This avoids the “double taxation” experienced by PCs and C corporations, which are taxed at the business level and again at the personal level when profits are distributed to shareholders. PLLC members also have the option of being taxed as a C corporation or S corporation, which can be financially advantageous to some PLLCs.

Many professionals prefer the PLLC structure due to its less rigid structure, ease of formation, and flexibility.

A New York PLLC is a specialized type of limited liability company (LLC) that is intended for licensed professionals to offer their unique services. A New York PLLC is formed specifically for the purpose of rendering professional services such as those rendered by physicians, dentists, therapists, pharmacists, and nurses. 

Like other LLCs, PLLCs protect their individual members from people with claims for many (but not all) types of financial debts or personal injuries. A PLLC is typically more popular than a professional corporation (PC) because It's a more flexible business type. 

An important detail of the PLLC that differs from a traditional LLC is that liability protection is not shared across all members of the company. For example, if you operate a PLLC for physicians, your business structure does not shield each individual member from malpractice suits. Instead, each member is liable for their own malpractice insurance, and no member is liable for another member’s malpractice.

Under the relevant New York law, professional service is defined only generally as any type of personal service which may be lawfully rendered by a member of a profession within the purview of that profession. New York's LLC law does not provide an itemized list of professional services, it does have provisions that indicate that all of the following—when properly licensed by the state—constitute professional services:

the practice of medicine,  dentistry, podiatry, optometry, ophthalmic dispensing, pharmacy, nursing, chiropractic, veterinary services, clinical social work services, creative arts therapy services, marriage and family therapy services, mental health counseling services, psychoanalysis services, and applied behavior analysis services.

1. Choose a name for your PLLC (there are naming restrictions to follow)

2. Designate a registered agent for your PLLC

3. Obtain a certificate from the licensing board that authorizes the PLLC to practice the stated profession 

4. Complete and file your New York articles of organization

5. Create and adopt an operating agreement

6. Comply with additional state and federal regulations for PLLCs such as Publication Requirements

7. Obtain an EIN

8. Pay PLLC taxes and file annual reports

The filing fee for the Certificate of Authorization with the NYSED Office of the Professions is $10. The filing fee for a New York PLLC's Articles of Organization is $200. (current as of 04/24/2023.)

Note: Other fees are involved in forming a PLLC, such as publication and registered agent costs, depending on the county. 

PSCC's PLLC Formation Service can take the mystery out of these requirements to keep your organization in good standing.

No, working with a lawyer is not required, but it may be advisable. Additionally, business consulting firms like PSCC can provide most of the assistance that you need to form your New York PLLC at a more reasonable cost than traditional law firms.

New York law requires newly formed PLLCs to publish a copy of the Articles of Organization or a notice regarding the PLLC’s formation in two newspapers for six consecutive weeks. The information in the published notice must match the Department of State’s records exactly as it is on the Articles of Organization. Newspapers must be assigned by the county clerk of the county in which the principal office of the PLLC is located. Each newspaper will provide an affidavit of publication. Total fees charged by newspapers could range from $750 - $2000+ depending on the county of incorporation.