How to Start a Professional Limited Liability Company (PLLC) in New York

Disclaimer

The information in this guide is not legal advice and is not intended to be relied upon as legal advice. The guide highlights some essential steps; it does not cover all the related laws and regulations. This guide was last updated on April 15, 2024 and some of the information may have since changed. If you have a legal issue, you should not rely on this information and instead speak to an attorney. 

1.     Determine if a New York PLLC is Right for You.

a.    PLLCs are typically used for health, design, and other licensed professions.

b.    Multi-member PLLCs may only provide services in one field, except for PLLCs formed by professional engineers, architects, landscape architects, geologists, and land surveyors. With some notable exceptions, single-member PLLCs may provide services in multiple fields if the individual member is properly licensed in each field.

c.     Consider alternate professional service entities such as a Professional Corporation (“PC”) or Design Professional Corporation (“DPC”). Consider the tax consequences of the different options and speak with a tax professional.

d.    Consider a foreign PLLC if you have an existing PLLC in another state.  

e.    Contact Pepitone Law for assistance with the PLLC formation process, guidance on your particular practice plans, your legal responsibilities, and other necessary steps and best practices for starting a private practice.

 Note on hyperlinks: Many regulations for professional business entities are the same for Professional Corporations (“PCs”) and PLLCs. The New York State Education Department Office of Professions often refers to PCs exclusively, despite the regulations being applicable to PLLCs.  

2.     Choose a Name.

a.     Consider the restrictions on your business name.

b.     Choose a business name that is not already registered with the New York Department of Corporations.

3.     Request Authority to Form the Entity from the Office of Professions.

a.     Note specific filing instructions and filing tips.

b.     Note that the current wait is 3 - 4 months.

Note for attorneys forming a PLLC for their own practice: request a Certificate of Good Standing instead of a Certificate of Authority. 

4.     File the Article of Organization with the NY Department of State.

a.     Once you have the Certificate of Authority, file the Articles of Organization, the Certificate of Authority, and the Payment Authorization with a request for a certified copy with the New York State Department of State (filing fee of $200.00, $10.00 for certified copy).

b.     For fastest processing, request Expedited Handling.

5.     Complete Registration with the Office of Professions.

a.     File the certified copy of the Articles of Organization with the Office of Professions.

b.     Confirm your business is listed on the official professional business entity database.

6.     Publish Notice of the Formation of Your PLLC.

a.     Contact the County Clerk to find out which newspapers you must publish notice of your PLLC in.

b.     Contact the selected newspapers and request publication of your notice for six consecutive weeks (publication fees differ but are generally $400.00 - $750.00 for each notice).

c.     Submit a Certificate of Publication with your proofs of publication from the newspapers with the New York Department of State (filing fee: $50.00).

7.     Draft and Adopt an Operating Agreement.

a.     An Operating Agreement is a legal document establishing the internal rules of the business. They typically include provisions on the business purpose, admitting members, capital contributions and distributions, and management structure.

b.     You can draft and adopt the Operating Agreement when you file the Articles of Organization (you don’t have to wait for publication to be complete).

8.     Maintain Your Entity

a.    File Biennial Statements with the New York Department of State and Renewals with the Office of Professions.

b.     Report changes to the Office of Professions.

c. You can find more information about maintaining your PLLC is our guide, Basic Legal Maintenance for New York Employers.

9.  Consult a Small Business Attorney

An experienced attorney can:

a.     Help you decide on the best business entity for your needs;

b.     Choose a proper name;

c.     Complete all filings and registrations;

d.     Prepare Operating Agreements, biennial statements, and other required filings; and

e.     Give you peace of mind throughout the process so you can focus on your business.

Contact Pepitone Law for a consultation.