Counselor Weekly- 11/08/23

LLC vs. PLLC

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Here's the short and skinny of today's newsletter:

  • Meme of the Day

  • Interesting Articles

  • LLC vs. PLLC

  • Cat Photo

Today in history: on 11/8/1884, Swiss psychiatrist Hermann Rorschach, who devised the inkblot test that bears his name and that was widely used clinically for diagnosing psychopathology, was born.

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Meme of the Day

And now some interesting articles:

What makes a person happy? Money and fame? Nope. Based on this 75 year old study, you might already have a guess as to what creates true happiness.

Ethical decision making when dealing with a personal crisis.

Did you know, 49% of men report feeling more depressed than they admit to the people in their lives?

LLC vs PLLC: Which Type Might Be Best for You?

Both LLC (Limited Liability Company) and PLLC (Professional Limited Liability Company) are legal structures used for businesses, but there are some key differences between them:

1. Purpose:

- LLC: An LLC is a flexible business structure suitable for various types of businesses, including small businesses, startups, and large corporations. It offers limited liability protection to its owners (called members) and can be used for both professional and non-professional services.

- PLLC: A PLLC is specifically designed for licensed professionals who provide services that require a state-issued professional license, such as doctors, lawyers, mental health professionals, accountants, architects, and engineers. In some states, only licensed professionals can form PLLCs.

2. Ownership:

- LLC: An LLC can have a wide range of members, including individuals, other LLCs, corporations, or even foreign entities. Membership can be open to anyone, regardless of their professional licensure.

- PLLC: In most states, only licensed professionals in a specific field can form a PLLC. The members of a PLLC are typically professionals within the same licensed occupation, and state laws often require that a majority of the PLLC's members hold the same professional license.

3. Management:

- LLC: An LLC can be managed by its members (member-managed) or by managers who may or may not be members (manager-managed). The management structure is flexible and determined by the LLC's operating agreement.

- PLLC: PLLCs are usually member-managed, meaning that the licensed professionals who own the PLLC are also responsible for its management.

4. Liability Protection:

- LLC: Both LLCs and PLLCs offer limited liability protection to their members, which means that the personal assets of the members are generally protected from the business's debts and liabilities. However, members of an LLC may still be personally liable for their own professional malpractice or negligence.

- PLLC: PLLCs offer limited liability protection for the professional malpractice and negligence of the other members within the same profession. This means that if one member commits malpractice, the personal assets of the other members are typically protected from the resulting lawsuit.

5. Name Requirements:

- LLC: The naming requirements for LLCs vary by state but generally require that the name includes "Limited Liability Company" or its abbreviation, such as "LLC."

- PLLC: The naming requirements for PLLCs typically include "Professional Limited Liability Company," "PLLC," or their respective abbreviations. Additionally, PLLCs are often required to use a name that reflects the licensed profession, such as "Smith Counseling, PLLC" for a medical practice.

It's important to note that the specific regulations and requirements for LLCs and PLLCs may vary from state to state in the United States. If you are considering forming an LLC or PLLC, it's advisable to consult with legal counsel or a business advisor familiar with the laws in your state to ensure compliance with local regulations and to make the best choice for your business structure.

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And, Finally the Cat Picture

Cat being administered an inkblot test! Created with an AI image generator.

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