Is a pllc considered a corporation?

A PLLC is a type of limited liability company, a business that works like a partnership but has the liability protection of a corporation. Some states do not allow certain types of professionals to form an LLC but instead require them to form a PLLC.

What type of LLC is a pllc?

Professional Limited Liability Company

A PLLC is a kind of LLC specifically for licensed professionals. The difference between an LLC and a PLLC is mainly that only licensed professionals such as architects, doctors, lawyers and accountants can form PLLCs.

Is a pllc as corp or C corp?

You can also opt to elect to be treated as a C corporation. This functions the same for a PLLC as it would for any incorporated company. The PLLC will file a Form 1120, Corporate Income Tax Return. … Members are instead taxed on the amount they receive as a corporate employee or on the dividends received as shareholders.

Is PLLC same as LLC?

PLLCs and LLCs are essentially the same business structure. However, anyone looking to form a business that provides professional services will need to consider which structure is best for them. While only three states require licensed professionals to form a PLLC, at least thirty states offer the option.

Does Florida have PLLC?

In Florida, individuals that hold Florida professional licenses may structure their business as a Florida professional limited liability company or PLLC. This classification provides certain liability protections regarding the licensed profession similar to the advantages of an LLC.

Is an S Corp the same as a Subchapter S?

An S corporation is named for Subchapter S of Chapter 1 of the Internal Revenue Code. It has elected to be taxed under this provision of the IRS code. S corps are also known as S subchapters.

Does Utah require PLLC?

Regarding the first point (having state licenses): Utah law allows unlicensed individuals to be members of PLLCs only the extent allowed by the applicable state licensing or registration act. Otherwise, all members must be licensed. You can file online using Utah’s OneStop Online Business Registration or by mail.

What is the difference between PLLC and LLP?

PLLC vs.

Unlike a general partnership, partners in an LLP are personally liable only for their own actions. The partners in an LLP aren’t liable for the actions or mistakes of other partners. In that way, an LLP is a lot like a PLLC. However, some states don’t allow licensed professionals to form LLPs.

What is the advantage of a pllc over an LLC?

PLLCs offer the same benefits as LLCs. The main difference between a LLC and a PLLC is that only professionals recognized in a state through licensing, such as architects, medical practitioners and lawyers, can form PLLCs.

How do I get a PLLC in Utah?

Just follow these six steps, and you’ll be on your way.
  1. Name Your Utah LLC. …
  2. Choose Your Registered Agent. …
  3. Prepare and File Certificate of Organization. …
  4. Receive a Certificate From the State. …
  5. Create an Operating Agreement. …
  6. Get an Employer Identification Number.

How do I start a PLLC in Utah?

How to Start an LLC in Utah
  1. Choose a Name for Your LLC. …
  2. Appoint a Registered Agent. …
  3. File a Certificate of Organization. …
  4. Prepare an Operating Agreement. …
  5. Obtain an EIN. …
  6. File Annual Renewals.

How do I add a member to my LLC in Utah?

To make amendments to your Limited Liability Company in Utah, you must provide the completed Articles of Amendment to Articles of Organization form, with the non-refundable processing fee, to the Division of Corporations & Commercial Code by mail, fax or in person.

Is LLC or S Corp better?

What Is the Difference Between an LLC and an S Corp? A limited liability company is easier to establish and has fewer regulatory requirements than other corporations. LLCs allow for personal liability protection, which means creditors cannot go after the owner’s personal assets.

What is better LLC or sole proprietorship?

A sole proprietorship is useful for small scale, low-profit and low-risk businesses. A sole proprietorship doesn’t protect your personal assets. An LLC is the best choice for most small business owners because LLCs can protect your personal assets.

What are the advantages of the LLC form of organization?

An LLC’s simple and adaptable business structure is perfect for many small businesses. While both corporations and LLCs offer their owners limited personal liability, owners of an LLC can also take advantage of LLC tax benefits, management flexibility and minimal recordkeeping and reporting requirements.

Who pays more taxes LLC or S corp?

LLCs. As an LLC owner, you’ll incur steep self employment taxes on all net earnings from your business, whereas an S corporation classification would allow you to only pay those taxes on the salary you take from your company. However, itemized deductions could make an LLC a more lucrative choice for tax purposes.

Can I switch from LLC to S corp?

Changing your LLC to an S corporation may save you money on taxes. … You can switch your limited liability company’s (LLC) tax status to an S corporation, provided it meets the Internal Revenue Service’s (IRS) requirements. You don’t have to change your business structure, but you’ll need to file a form with the IRS.

Why would you choose an S corporation?

Asset protection. One major advantage of an S corporation is that it provides owners limited liability protection, regardless of its tax status. Limited liability protection means that the owners’ personal assets are shielded from the claims of business creditors—whether the claims arise from contracts or litigation.