As a SonderMind Provider Network, you are not required to have an LLC or PLLC but it’s best to know your options and understand the benefits of having one.
What is an LLC and why are they important?
A Limited Liability Company (LLC) protects the business owner (you) from assuming responsibility of company debts and liabilities. In this way, the owner’s personal assets (i.e. car, house, bank accounts) are protected from loss in the event of debts or lawsuits filed against the company. However, any money that you invest in the company, IS subject to loss in the event of debts or lawsuits filed. This protection does NOT extend to malpractice lawsuits, and therefore, you should maintain your professional liability insurance.
What’s the difference between an LLC and a PLLC?
In short, they are the same. Some, but not all, states require that certain occupations (one of which being therapists, counselors) set up a Professional Limited Liability Company (PLLC). The added “professional” informs people that the company’s services are rendered by a licensed professional.
How do I obtain an LLC?
It depends on the state in which the business is located, so you’ll need to check with the respective state’s Secretary of State website for details.
Steps to take:
1. (The fun part!) Choose your business name.
2. Look-up your state’s requirements of how to designate the business (LLC vs. PLLC). Find your state below to be directed to the associated Secretary of State’s site where you’ll find state-specific next steps:
3. Apply for and get an EIN (Learn how).
4. Complete and file the Articles of Organization.
5. Draft an Operation Agreement.
6. Obtain any applicable business permits and licenses.
**Disclaimer: This document is intended for educational purposes only. Please check with your legal counsel or state licensing board for specific requirements.
SonderMind Inc.© 2021