Do I Need a License for an PLLC in Florida?

Florida law has strict regulations to govern certain licensed professions and occupations. Depending on the type of segment, professionals cannot establish a standard limited liability company to protect themselves from liabilities resulting from business activities.

In this article, you will discover what a PLLC is and whether you need a license to run this type of company.

What is a Florida PLLC? – An Introduction

A limited liability company (LLC) is a business structure that works as a separate legal entity from its owners (also referred to as members). As Florida law precludes some professional categories from forming LLCs, they must rely on professional limited liability companies (PLLCs).

A PLLC is a special type of LLC that is used by licensed professionals working in segments exposed to a high level of liability. Similar to standard LLCs, PLLCs also enjoy special tax treatment.

The membership of a PPLC is restricted exclusively to licensed professionals legally authorized to provide services in their specific segment, such as:

Certified public accountants (CPAs)
Doctors, physicians
Dentists
Lawyers

If you are interested in forming a PLLC, it is fundamental to check whether it is an ideal solution for your case.

What is the Level of Protection Offered by PLLCs? – Full Overview

Compared to standard LLCs, PLLCs offer a similar level of protection with slight differences in some respects. LLCs are well-known for offering protection against business creditors, which also applies to PLLCs.

The creditor of a PLLC cannot collect owed debts from the member’s personal assets. Similarly, if there are multiple members, a single member’s malpractice cannot affect all the parties involved in the company.

As long as the reason for the debt or judgment is not connected with a member’s malpractice, negligence, or tort, the business shields licensed professionals from business liabilities.

Forming a PLLC in Florida – Understanding the Process

The first step to forming a PLLC in Florida is to ensure that all members of the business meet the applicable licensing and certification requirements. It is impossible to form a PLLC without a proper license to provide services in the company’s specific segment.

If a prospective member of a PLLC wants to be part of the company, it is vital to contact the relevant licensing division in Florida and go through the process to obtain the required licenses and permits. If all the members are fully compliant already, the situation is even more favorable.

Without further ado, the professionals forming the company must file Articles of Organization with the Florida Division of Corporations. PLLCs must also have a statement of specific purpose, which serves to identify the company’s specific segment.

For example, a trio of dentists forming a new PLLC in their segment must use the statement to specify their practice focuses on dental practice.

PLLCs have some naming restrictions. When naming the business, the members must include the terms “professional limited liability,” P.L.L.C.,” or “PLLC.” This type of business structure cannot engage in any other form of business except for the professional services it was formed to provide.

After the company is properly registered, the licensed members are subject to all relevant regulations provided by Florida law. No statutory rule requires the drafting of an operating agreement for PLLCs.