Setting up Professional Limited Liability Company
Trial attorneys have strongly opposed the use of LLCs by licensed professionals, such as doctors, accountants, architect, and engineers. As a result, state laws do not allow licensed professionals to operate their professional practices as an LLC. Some states have adopted and allow licensed professionals to operate as a Professional Limited Liability Company (PLLC). While the PLLC can be used by a professional to isolate himself from the liability of other partners, it does not limit his personal liability for malpractice. In other words, even with a PLLC, all of the assets held in your name can be taken to satisfy a judgment against you for malpractice. Thus, it is very important for professionals to have practice assets (building, equipment, etc.) and personal assets (home, cash, art, stocks, etc.) in LLCs and/or FLPs, so in the event of a malpractice lawsuit, your business and personal assets will be protected from seizure and unaffected by the lawsuit.