Provided by:  Jennifer Kirschenbaum, Esq.

January 21, 2019



Hi Jennifer,

I want to add PT to my chiro practice.  My buddy says he will be an owner on my PLLC.  Is it safer to add him as a 1% owner?  

What do you think?

Thanks, Dr. L


Safer for who?  You?  Safer from payment or payout requirements?  Not really - LLCs in NY do not have to pay distributions "pro rata", by ownership percentage.  So, if by liability, you mean your monetary liability, you can control distributions if the Operating Agreement provides, salaries, benefits, etc.  Now, from a liability standpoint from a licensing perspective, if your buddy is the only PT, he is taking responsibility at 1% or 49% for 100% of the PT services rendered on site.  So, if I were his lawyer I would be asking whether the juice is worth the squeeze, which is not a cut and dry assessment.  You and the PT would have to weigh financial benefit, control, autonomy, oversight access, etc.  .  What access do I have to oversee the PTs; is the financial arrangement worth it if the enterprise is not run compliantly, or my compensation is not what I consider to be reasonable.  All part of a bigger conversation/major consideration...

Hope this helps.