How To Form A PLLC in New York

There are four options for professional service providers in New York who want to set up a new business entity: 1. Professional Service Limited Liability Company (PLLC);  2. Professional Corporation (PC); 3. Design Professional Corporation (DPC); and 4. Limited Liability Partnership (LLP). These are the correct entities for people who provide professional services such as doctors, lawyers, engineers, dentists, LCSWs, licensed mental health counselors, registered nurses, nurse practitioners, and other professionals who are regulated by the New York State Education Department. PLLCs are by far the most popular choice out of these 4 options.

Forming a professional business entity in New York is similar to forming a regular business entity, however there are additional regulations to comply with. In New York many occupations are subject to Title VIII of the Education Law, which is regulated by the New York State Education Department, Office of the Professions. This organization is the gatekeeper of professional entities. In order to get their authorization, we must provide them with the Articles of Organization for the proposed professional entity, comply with their business naming restrictions, pay fees associated with their authorization process and credential checking process, and complete a certificate of authorization form and/or other preliminary documents depending on the profession.

Once the Department of Edccation authorization is obtained, we must file it with the New York Dept. of State along with your organizational documents. Then, these documents must be certified and filed back with the Dept. of Education. The formation process takes about 3 to 4 months and is fairly difficult. The Dept. of Education seems to love rejecting PLLC applications for various reasons, so do yourself a favor and give us a call if you’re planning on setting one up.

If you’re forming a PLLC or LLP, after the entity is formed you will need to complete the NY LLC publication requirement. If you’re forming a PC, there’s no publication requirement but you should still make sure that you execute the appropriate corporate documents including your bylaws, resolutions, shareholders agreement, etc. For more information check out our Form a Professional Business Entity page or contact us for a free phone consultation!