What’s the difference between a PLLC and an LLC?
An LLC is a Limited Liability Company. If set up properly, an LLC will protect your personal assets, such as your house, car, and other personal belongings. Establishing an LLC separates your personal assets from your business assets. If your business fails, only your business assets can be used to settle its debts..
Most small business that want to incorporate form LLCs.
But what are PLLCs, and how do they compare to LLCs?
A PLLC is an LLC for certain industries. If your industry requires you to have a license or certification, this usually means you should be a PLLC. If you are a Private Therapy practice in Washington State you should be a PLLC.
A quick question you can ask yourself is: do I require continuing education each year? If the answer is maybe, you should talk to a lawyer to confirm whether you should register as a PLLC or LLC.
Uhhh…What if I might already be an LLC and shouldn’t be?
Well, we’re always happy to help Therapy clients email the Secretary of State to start the process of changing from an LLC to a PLLC. The Secretary of State will send paperwork to correct this, and you’ll likely just need to fill it out and pay a small processing fee.
TL;DR: If you are a Therapy Practice you should be a PLLC.