Form a New York Professional LLC
New York PLLC
A Professional LLC, or PLLC, is a business entity reserved for companies that provide professional services. Similar to other states, New York restricts some professionals from using the LLC entity structure. Instead, they allow companies that sell certain professional services (like medical care, accounting, or therapy) to form a PLLC.
You can form a PLLC by getting a Certificate of Authority from the Department of Education, Office of the Professions ($10 filing fee per member and/or manager) and filing Articles of Organization for Professional LLC with the New York State Department of State (DOS) and paying the $200 filing fee.
If you feel like taking on the task of filing by yourself, our guide below walks you through the process of forming a Professional LLC in New York. Your first step, however, is to make sure that forming a PLLC is the right choice for you and your business.
Do I Need a PLLC in New York?
Whether or not you need a PLLC in New York depends entirely on what professional service your company sells. Certain licensed professionals are required to form a PLLC (instead of an LLC) in New York. Having a PLLC means that the New York State Education Department, Office of Professions has approved your company to perform a specific, professional service.
Generally speaking, most medical services fit under the PLLC umbrella. As do most professions regulated by a licensing board. Some examples of licensed professions include:
- Acupuncture
- Athletic Training
- Certified Shorthand Reporting
- Dentistry
- Engineering
- Interior Design
- Midwifery
- Pharmacy
- Veterinary Medicine
The list above does not include every licensed profession on the NYS Education Department’s radar. You can find the complete list on the their website.
Get a Registered Agent for Your New York PLLC
Just like New York LLCs and corporations, the Department of State will be automatically appointed as your registered agent when your form your PLLC. The department will accept any service of process on behalf of your business and send it to you. However, it’s not uncommon for New York PLLCs to appoint a second registered agent to be their company’s business contact with the state.
Why appoint a New York registered agent?
First and foremost, to protect your privacy. Even if your legal mail is sent to the state (instead of to your place of business), you are still required to include an address where the state will forward your mail on your Articles of Organization. In a nutshell, this means that your business address will become public record and is fair game to the inevitable onslaught of solicitations and junk mail.
When your hire us as your New York registered agent, we give you our address as soon as you sign up, at no extra charge. We own our own building, so you can count on the address staying the same. Plus, our address is just down the street from the NY Secretary of State.
Our New York Registered Agent Service includes:
- Use of our address on your formation documents
- Instant access to your business documents in your online account
- Real time document delivery
- Lower PLLC publication costs
- An instant online business presence that includes a domain name, website, SSL, business email addresses, and phone service
New York PLLC vs. New York LLC
PLLCs differ from LLCs in how they are regulated. Professional services that form a PLLC (rather than an LLC) often require more liability protection and are regulated by a state licensing board because of the high-liability services they offer.
In New York, only the company’s licensed professionals can be members of the PLLC. If you decide to form your PLLC with other members of the same profession, this business structure can protect you from claims of malpractice against them. However, a PLLC does not protect you from claims of malpractice brought against you.
Both business structures are considered “pass through” entities, meaning that your PLLC’s income will “pass through” to you and the other members. You’ll report this on your personal taxes, avoiding the state’s hefty franchise tax.
How to Get a New York PLLC
If your professional service fits the bill, and you’re ready to form your PLLC, here’s what to do next:
Get your professional license in New York
There are a few more requirements for PLLCs than for NY LLCs. One of them is obtaining and maintaining the appropriate professional license with the state. How to do this varies from profession to profession, but typically you’ll need to fulfill the education, training, and other licensing requirements in order to get your license.
If you do not have the right license yet, you will apply for it through the Department of Education, Office of the Professions.
Complete your PLLC’s Articles of Organization
Once you (and the other professional members of the PLLC) are licensed, the next step is to fill out your company’s Articles of Organization. Here’s what you’ll need to include on your application:
- PLLC name
- The PLLC’s professional service
- The county where your business will be located
- The address where the NY SoS will forward your legal mail (If you hire us as your registered agent, our address will go here)
- The names and addresses of your PLLC’s original members and managers
- The names and addresses of any entities that might serve as a member or manager in the PLLC (If this applies to you, you will also need to include that company’s Certificate of Existence)
- Certificate of authority from your profession’s licensing board
- Organizer’s signature
- Filer’s name and address
Get a Certificate of Authority
You will need a Certificate of Authority from the Office of Professions in the NY Department of Education before forming your PLLC. In order to do this you’ll need to send your completed Articles of Organization to the New York State Education Department and pay the filing fee ($10 per member).
You can submit your application for a Certificate of Authority online using New York State Business Express, or mail your submission to:
New York State Education Department
Division of Professional Licensing Services
Professional Corporations Unit
89 Washington Avenue
Albany, NY 12234-1000
If you do mail in your application, make sure you include the filing fee as a check or money order made payable to New York State Education Department.
Once your application has been approved by the Office of Professions, you’ll be mailed both a Certificate of Authority and a copy of the Articles of Organization your submitted.
Submit your PLLC’s Articles of Organization
With the approval of the Office of Professions, you’re ready to file your articles with the state and officially form your PLLC. You must submit both your Articles of Organization and your Certificate of Authority to the Department of State and pay the $200 filing fee. The state’s preferred methods of payment are Visa, Mastercard, or money order made payable to the Department of State.
You can mail or deliver these documents to:
Department of State
Division of Corporations, State Records, and Uniform Commercial Code
One Commerce Plaza
99 Washington Ave.
Albany, NY 12231-0001
Forming a PLLC requires a few more steps than a traditional LLC, and there are a number of ways your filing could be delayed. (For example, if the signature on your paperwork does not belong to any of the professionals creating the PLLC.) For a complete list of possible roadblocks, check out this list of tips for stress-free filing from the NY State Education Department.
Request a certified copy of Articles of Organization
Once your Articles of Organization have been processed by the Department of State, you will need to send a certified copy of your articles back to the Department of Education within 30 days of filing with the Department of State.
You can request a certified copy of your articles when you submit your articles to the state. If you didn’t do this, don’t worry! You can still get it by submitting an online request here.
Meet the NY Publication Requirement
Just like traditional LLCs and corporations, PLLCs are required to fulfill New York’s archaic publication requirement. Once your PLLC is formed, you will need to publish notice of your company’s formation in 2 different newspapers for 6 consecutive weeks.
The newspapers you’ll publish in are assigned by the county clerk where your PLLC is located.
Publication costs vary greatly from county to county, and usually range anywhere from about $750 to $2,000 or more.
After the six-week run, the newspapers you’ve published in will send you an affidavit. You’ll need these to prove to the state that your PLLC has met the publication requirement. You will send the affidavits, along with the Certificate of Publication form and the $50 filing fee to the New York Department of State.
Hire us as your registered agent and avoid massive publication costs.
If you hire us as your New York registered agent, we’ll let you list our Albany office address as your county of business. Compared to publishing in the city, publishing in Albany can save you about $1,000 in publication costs.
