- Legal vs tax
- Still an LLC for federal tax defaults (disregarded or partnership). Licensing rules sit on top.
- Liability
- Typically does not shield a professional from their own malpractice. Entity debts and other members' acts vary.
- Default federal tax
- disregarded
- Other federal options
- partnership, s corporation, c corporation
- Formation / maintenance
- State professional-entity filing plus board approval in many professions.
- Public-record notes
- License and ownership are often more public than a generic LLC because boards publish them.
- Succession
- Must stay within licensed owners. Estate transfers can break the entity if an heir is unlicensed.
- Investor fit
- Non-professional investors are often prohibited.
Disqualifiers
- Unlicensed owners
- Need ordinary C-corp venture structure
Professional review: attorney, cpa, insurance.