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Roger
Roger, Attorney
Category: Business Law
Satisfied Customers: 26088
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by West
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I am a looking to create an LLC to provide home health physical

Resolved Question:

I am a looking to create an LLC to provide home health physical therapy in VA. Do I need to create a PLLC instead? Would an S-Corp also work?
Submitted: 10 months ago.
Category: Business Law
Expert:  Roger replied 10 months ago.

Kirk Adams : Hi - my name is XXXXX XXXXX X'X a Business litigation attorney. Thanks for your question.
Kirk Adams : Bear with me just a moment.
Customer:

Hello Kirk, thanks for your help.

Kirk Adams : Sure. You can create an S-Corp - - which is basically the precursor to an LLC.
Kirk Adams : I was looking to see what Va. law said about a PLLC. USUALLY, professional orgainzations must be a PLLC, but I'm looking to make sure.
Customer:

I am a licensed in the state of virginia as a physical therapist

Customer:

my understanding is that means i have to do a pllc, but I do not know this area well.

Kirk Adams : Yes, I believe that's right. I just wanted to find the statute.
Kirk Adams : The following link is to the statute that defines what a PLLC is: DANGEROUS URL REMOVED?000+cod+13.1-1102
Customer:

The link doesn't work.

Customer:

What is the difference between an s-corp and a PLLC?

Customer:

I would be self employed and not have any employees

Kirk Adams : About midway through the second paragraph, it says:
Customer:

So I am trying to figure out the best way to proceed

Kirk Adams : one or more physical therapists and physical therapist assistants licensed under the provisions of Chapter 34.1 (§ 54.1-3473 et seq.) of Title 54.1
Kirk Adams : Thus, you'd need a PLLC as opposed to an LLC
Kirk Adams : But, an S-Corp is a possibility as well.
Kirk Adams : I ALWAYS tell my clients to go with an LLC/PLLC because they're the easiest to manage, keep books, etc.
Customer:

does an s-corp have any advantages?

Kirk Adams : An S-Corp is the precursor to the modern LLC/PLLC, and was an attempt to bridge the gap between a corporation and a partnership or sole proprietorship.
Kirk Adams : Generally, an LLC/PLLC is the best option because it allows for pass through taxation, which means that the company''s profits avoid being taxed twice.
Kirk Adams : In a traditional corporation, the corporation pays taxes, and THEN when the money is passed to the shareholders, they pay individual taxes as well.
Customer:

Ok, I will proceed with a PLLC. What is the best way to establish one?

Kirk Adams : The PLLC allows for taxation only to the members instead of both.
Customer:

I can somewhat understand that, but it is complicated to me.

Kirk Adams : IT is VERY complicated stuff, but the PLLC is usually the best option for a small professional business.
Customer:

Thank you, XXXXX XXXXX how to open one?

Kirk Adams : The Va. Corporations Commission can assist in forming the PLLC, and it has forms online such as this form: http://www.scc.virginia.gov/publicforms/345/llc1103.pdf
Kirk Adams : The second page tells how to apply, where to send the application, the fee, etc.
Kirk Adams : USUALLY, an accountant or an attorney can set the company up for you as well - - and it's usually not very expensive.
Kirk Adams : Obviously, I would recommend having an attorney/accountant do it to make sure it's done correctly, state and federal tax ID numbers are obtained, etc., but you can do it yourself if you have time to deal with it.
Customer:

Ok, thank you. Can you advise me on what type of insurance I should have for a physical therapist?

Customer:

I will have someone help me with it.

Kirk Adams : A general liability policy/errors and omissions policy is the best option. $1 million is the general standard for medical professionals who aren't physicians (my wife is an SLP and that's what she has).
Customer:

Ok great. Can I ask a different question regarding medicare/non medicare?

Kirk Adams : Yes, that's fine.
Kirk Adams : I can't swear I'll be able to answer it.......I am familiar with them both, generally - - but not intimately.
Customer:

All my patients currently are medicare. Is it a problem once their medicare treatments are complete that I continue to treat them if they want to pay me directly? I am not sure if there is a conflict there are not. Usually my patients are disappointed when I can no longer treat them.

Kirk Adams : I so not think they can do that. This has come up before with a client of mine. I don't think you can accept payments from them personally. I think it can get you in trouble.
Customer:

By directly I mean pay to this PLLC, but I suspect that is the same issue?

Kirk Adams : Yes, it would be the same because the PLLC isn't the licensed PT - you are.
Customer:

Interesting. I am on the only member of the PLLC in this case. That makes it sound like I would not be able to have any clients?

Kirk Adams : You're working for the PLLC as the PT, but your treatment is what Medicare will look at. Thus, if you treat them under it, you can't take them on privately.
Customer:

Ok, but if other non-medicare patients want treatment and I have not treated them under medicare, I can do that through this PLLC?

Kirk Adams : Yes, I think that's fine.
Customer:

That is fundamentally all I am trying to achieve here. Is there a different way to do it?

Kirk Adams : The only issue is when you're treating a patient privately who is/was on Medicare.
Customer:

ok, I will stay away from that.

Customer:

Final question just to make it very clear to me.

Customer:

A patient is interested in receiving therapy from my PLLC. We establish an agreement and a plan of treatment at a certain rate. Once I provide care, that person writes a check to my PLLC. Does that seem accurate to you?

Kirk Adams : Yes.
Kirk Adams : Then, the PLLC will pay you.
Customer:

Perfect. I could ask questions all night, but I believe the intent of this session has been met. How long are these sessions supposed to go?

Kirk Adams : Technically, just one question, but I'm not hung up on that.
Customer:

ok, well thanks for your patience and help.

Kirk Adams : I don't mind answering questions relevant to the initial question. It's fine.
Kirk Adams : But, if you positively rate this question, it will still remain open and you can ask me something later if it comes up.
Customer:

Ok, I will rate excellent service. Thanks.

Kirk Adams : Or...you can open a new question and request me later as well.
Kirk Adams : Thanks for allowing me to help!!
Roger, Attorney
Category: Business Law
Satisfied Customers: 26088
Experience: BV Rated by Martindale-Hubbell; SuperLawyer rating by West
Roger and 9 other Business Law Specialists are ready to help you

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