1. What is LLC ?
A limited liability company (LLC) is a type of business ownership that combines several features of corporation and partnership structures. Owners of a LLC are called members, not partners or shareholders, and the number of members is unlimited.
A Limited Liability Company, unlike a corporation, can be made up of as many members as the company wishes to have and it does not require bylaws, meetings, or the recording of minutes.
2. What is PLLC ?
is a professional limited liability company.
A PLLC is formed and functions in the same way as a general limited liability company (LLC.) The members of the PLLC are members of a specific profession which requires a license (CPA, attorney, chiropractor, architect). PLLC’s are set up in specific states and the state’s laws regulate the PLLC. State law designates which professions can form an LLC and restricts the membership of the PLLC to members of that profession. California law does not allow an LLC to be formed to provide professional services.
How PLLC’s pay Income Taxes
PLLC’s pay income taxes in the same way as LLC’s, depending on the number of members. A PLLC with one member pays taxes as a sole proprietorship; a PLLC with multiple members pays taxes as a partnership. Read more about how LLC’s pay income taxes.