Professional Service Organizations

Question 1

Professional service organizations are organizations whose sole purpose is:

Answer 1

rendering of professional services by licensed individuals or groups or individuals

Question 2

However, professional service organizations may also incidentally …

Answer 2

invest in real estate, mortgages, stocks, bonds, and any other type of investments. And they can own real property or personal property, if it’s necessary for the provision of professional services.

Question 3

Two forms of professional service organizations…

Answer 3

Professional service organizations can be structured as a professional LLC. Or they can be set up as a professional service corporation.

Question 4

In general, the members, officers, employees, and agents of professional service organizations must be:

Answer 4

duly licensed or otherwise legally authorized to provide such professional services within Florida

Question 5

In the case of a professional services corporation, the name must contain:

Answer 5

Chartered, Professional Association (Professional Corporation), or P.A.

Question 6

In the case of a professional LLC, the name must contain:

Answer 6

Professional Limited Company, P.L., Limited Company, or L.C.

Question 7

Who may own stock?

Answer 7

Only licensed individuals and other professional LLCs or corporations may own stock or membership rights in a professional services corporation or professional LLC.

Question 8

Members, officers, and shareholders who lose their license must:

Answer 8

immediately sever their employment with, and financial interests in, the corporation or LLC

Question 9

Liability?

Answer 9

Members of a professional limited liability company and professional services corporation enjoy limited liability protection.

However, they remain liable for injuries caused by: their own misconduct or those under their supervision or control