Firms offering professional services are prohibited from becoming limited liability partnerships.?
True or False
- Anonymous1 decade agoFavorite Answer
It depends, grasshopper, it depends.
In some states, professional services have to be rendered by PLLCs, professional limited liability partnerships, just as an ordinary business corporation ("inc" or "corp") may not render professional services: the corporation must be a PC, professional corporation. In at least one state (NY), professional services may be rendered by ordinary LLPs, but if they incorporate, it must be as a PC. Nobody really understands why.
In other states, it makes no difference: the "business" form of entity is used but its members, the professionals, are subject to the same professional rules as if they were practicing as sole practitioners.