Provided by: Jennifer Kirschenbaum, Esq.
November 15, 2018
Based on popular demand, Michael has asked I distribute -
I am interested in forming a professional entity in New York for my practice. What are my options, how long does the process take and is it similar to forming a lay entity?
Thanks, Dr. S
This is a great question and one that I deal with on almost a daily basis. There are three forms of professional entities in New York State: professional limited liability partnership, professional corporation and a professional limited liability company. Each entity will offer a layer of corporate protection, and each will be treated different tax-wise. Regardless of which you choose, you are always going to be personally held responsible for your malpractice. We always strongly recommend your healthcare accountant be consulted prior to making a formation decision.
Whichever construct you elect, you are required to have any professional entity approved by the NYS Department of Education prior to filing (forming) with the Department of State. NYS DOE requires approval of the proposed name for professional entities in order to prevent professionals (doctors, lawyers, etc.) from misrepresenting the services they are allowed to provide, and also to confirm only properly licensed persons are forming a professional entity. Unfortunately, unlike the Department of State, the Department of Education has yet to implement a system to expedite this process. Due to recent state budget cuts, we have seen the time for approval from the Department of Education take anywhere from 4-5 months. Unfortunately there is no way to get around this wait. However the good news is that once we do receive approval with the Department of Education we are able to expedite the process with the Department of State to as quickly as same day filing for a nominal fee or up to a week without expediting. Therefore, if you are considering forming a professional entity our advice is to get the process moving ASAP!
For additional questions on this or to form, you can always call Jennifer, or contact Michael at (516) 747-6700 x.308 or firstname.lastname@example.org or Taryn at (516) 747-6700 x. 310 or email@example.com.