There are 4 business entity options for professional service providers in New York: 1. Professional Service Limited Liability Company (PLLC); 2. Professional Corporation (PC); 3. Design Professional Corporation (DPC); and 4. Limited Liability Partnership (LLP). These are the correct entities for people who provide professional services such as doctors, lawyers, engineers, dentists, LCSWs and other professionals who are regulated by the New York State Education Department. PLLCs are by far the most popular choice out of these 4 options.
Forming a PLLC in New York is much more difficult than forming a regular LLC. There are additional naming restrictions, additional licensure restrictions and longer processing times due to the New York State Education Department, Office of the Professions. This organization is the gatekeeper of professional entities in New York.
In order to get the Department of Education’s authorization, we must provide them with the Articles of Organization for the proposed professional entity, comply with their membership restrictions, comply with business naming restrictions, pay fees associated with their authorization process, complete a certificate of authorization form and/or other preliminary documents depending on the profession. Once their consent is obtained (aka a PLS 709), we must file it with the New York Dept. of State along with the formation documents. Once approved by the NYS Dept. of State, these documents must be certified and filed back with the Department of Education. Sound like a lot of work? It is! This process usually takes about 3 to 4 months.
Similarly, when we set up PLLCs for attorneys we need a Certificate of Good Standing from their Appellate Division, but fortunately obtaining an Attorney Certificate of Good Standing is quick and easy. These can be obtained the same day in person, thus we can usually have an Attorney PLLC set up within just a couple of days.
If you need assistance setting up a PLLC please see our PLLC Formation Service page for the flat fees and details or feel free to email us to schedule a free phone consultation!