What is a Professional Limited Liability Company (PLLC)?
A Professional Limited Liability Company (PLLC) is similar to a professional corporation. Both are organized to provide professional services. Professionals — such as accountants, architects, lawyers, engineers, chiropractors, dentists, and doctors — are permitted in many states to form a standard LLC. However, some states require that these individuals form a PLLC, a similar but distinct entity from the limited liability company. If your state offers the PLLC entity and your industry is one that requires a license from the state, you may consider forming a professional LLC.
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Categories: Business Ideas Tags: articles of organization, corporation, ownership interest, professional llc
LLC Members With Uneven Ownership
Despite what the graphic may imply, uneven ownership in an LLC does not necessarily mean an unfair distribution; there may be a number of reasons LLC members may decide to own an unequal share in the company. For instance, some members may have contributed more capital to the LLC and therefore demand a larger ownership interest, or a member may be a silent partner and wish to contribute only a small amount to the company in exchange for a small share. Regardless of the reason, the LLC ownership structure is flexible enough to allow for any distribution of ownership among the members.
Categories: LLC Advantages and Disadvantages Tags: articles of organization, operating agreement, ownership interest, profit-sharing
Adding a Member to a Single-Member LLC
Adding a member to an LLC is straightforward, but there are slightly different considerations when you add a new member to a single-member LLC. You will not need to re-register your LLC with the state, but you may have to file an amended Articles of Organization.
Though not required, you should also amend your Operating Agreement to clarify the relationship you have with your new partner. Due to the flexibility of the LLC structure, your new partner may invest any amount of time or money into the LLC and receive any share of the LLC you two deem agreeable.
Categories: LLC Advantages and Disadvantages Tags: articles of organization, member duties, operating agreement, ownership interest, pass-through taxation, single member llcs, taxes
Selling or Transferring Your Membership Interest in an LLC
If you co-own an LLC with one or more partners and are ready to leave the LLC, you may be able to sell or transfer your membership interest. Having a current LLC member buy out your share in the LLC is the easiest and most direct method, but you may also be able to assign your LLC membership interest to a third party.
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Categories: Dissolving or Transferring an LLC Tags: assignment, buyout, operating agreement, ownership interest, partnerships, states
