How to create a PLLC in NY

Hello, fellow professional entrepreneurs! Have you been wanting to form your own business entity, see how confusing it is, but don’t want to pay the lawyer fees to have them do it for you? I am here for you - I figured it out myself in order to form my business (Dr. Shona S. Craig Physical Therapy, PLLC), I saved myself hundreds of dollars, and you can too! In NYS, licensed professionals must create a PLLC instead of an LLC.

Benefits of creating a PLLC instead of remaining a sole proprietor:

• Asset protection - personal assets can be protected from business debts and lawsuits against the business

• Increased credibility as a professional

Disadvantages:

• Cost - It cost me around $345 to start my PLLC on my own without the help of a lawyer or company.

Here is my guide:

Reference websites:

• NYS Education Department: Section VI Professional Service Limited Liability Companies (PLLC)

• Department of State: Articles of Organization (Professional Service) for Domestic Limited Liability Companies

Step 1: Decide on a name

• Name search to see if your name is available: Department of State name availability

• The name of your business must end with “Professional limited liability company,” “P.L.L.C.” or “PLLC

Step 2: Application to obtain the Certificate of Authority from the Office of Professions

• Fill out 3 documents

1. Articles of Organization 1203

2. Professional Corporations Contact Information Form (nysed.gov)

3. Affidavit PPE - get this one notarized (I walked into my local bank, call ahead to check when their notary will be in or if they require you to make an appointment)

• Filing Fee: Write a check made out to New York State Education Department for $10

• Send the 3 documents and check to:

  • New York State Education Department
    Division of Professional Licensing Services
    Professional Corporations Unit
    89 Washington Avenue
    Albany, NY 12234-1000

• Wait: The Certificate of Authority will be sent to you by mail along with a copy of the Articles of Organization you've submitted.

• Note: I designated myself as the “registered agent.” This seemed like the easiest path for me, but you can designate a different person/company.

Step 3: Submit both the Certificate of Authority and Articles of Organization (that you just received back in the mail from the NYS Education Department) to the Department of State along with the fees.

• Fill out form 1515-f and send it with the Certificate of Authority and Articles of Organization. Check off:

  • FILING OF DOCUMENT OR CERTIFICATE ($200)

    • Expedited processing ($25)

  • CERTIFIED COPY ($10)

    • Expedited processing ($25)

  • Total: $260, fill out your payment information and sign

• DOS Fax: 518-474-1418

• Contact the Department of State for any questions at (518) 473-2492

• Wait for them to mail you the certified copy of the Articles of Organization

Step 4: Mail the Certificated Copy of the Articles of Organization to the Office of the Professions.

• Mailing address

  • New York State Education Department
    Division of Professional Licensing Services
    Professional Corporations Unit
    89 Washington Avenue
    Albany, NY 12234-1000

Step 5: Draft an Operating Agreement

• This document provides a blueprint for your PLLC’s daily operations, plus it summarizes each owner’s contributions to the business and share of the profits.

Step 6: Apply for EIN

• Visit the IRS website to apply for an EIN online

• Apply during operating hours: Monday-Friday, 7 a.m. to 10 p.m. EST

Step 7: Fill out LLC/LLP Request for Information

• You will receive the LLC/LLP Request for Information form in the mail - fill it out and mail or fax back. Here are some tips:

  • Part 2 - if you are a single-member business, you will most likely be treated as a sole proprietor for tax purposes

  • Part 3 - EIN, check the box that you are disregarded as an entity

  • Part 4 - Physical therapy falls under the NAICS code 621300 Offices of Other Health Practitioners

  • Part 5 - you are a member. All owners of LLCs are regarded as members for tax purposes.

Step 8: Publish your PLLC in the local newspapers

• Write a publication notice. Example:

  • Dr. Shona S. Craig Physical Therapy, PLLC. Arts. of Org. filed with the SSNY on 12/01/2022. Office: Tompkins County. SSNY designated as agent of the PLLC upon whom process against it may be served. SSNY shall mail copy of process to the PLLC, 46 Elm Street, Trumansburg, NY 14886. Purpose: Any lawful purpose.

• Find 1 local weekly newspaper, and 1 local daily newspaper - contact them and ask them to publish your notice of formation for 6 consecutive weeks. (The newspapers must be designated by the county clerk of the county in which the office of the LLC is located.)

• The newspapers charge a fee for the publication of the notice.

• The printer or publisher of each newspaper will provide you with an affidavit of publication at the end of the 6 weeks.

Step 8: Send the Certificate of Publication, with the affidavits of publication of the newspaper, to the Department of State, with a $50 filing fee.

• Fill out The Certificate of Publication

• Fill out form 1515-f and check off:

  • FILING OF DOCUMENT OR CERTIFICATE ($50)

    • Expedited processing ($25)

  • Total: $75, fill out your payment information and sign

• DOS Fax: 518-474-1418

• Failure to publish and file the Certificate of Publication with the Department of State within 120 days will result in the suspension of the LLC’s authority to carry on, conduct or transact business.

GOOD LUCK! You got this.