How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask socrateaser Your Own Question
socrateaser, Attorney
Category: Business Law
Satisfied Customers: 38910
Experience:  Retired (mostly)
Type Your Business Law Question Here...
socrateaser is online now
A new question is answered every 9 seconds

My husband has a professional LLC. He is the only member.

This answer was rated:

My husband has a professional LLC. He is the only member. I cannot be part of the LLC because I'm not an optometrist. The lawyer who set it up suggested the professional LLC. Is there a way to change the LLC to one in which I can be a member? What is the advantage of having the professional LLC?
A professional LLC is required where the LLC provides government-licensed services. No owner/member can be a person not licensed to practice the profession that the LLC provides, because to do so is unauthorized practice.

The reason for this prohibition is that it would permit unlicensed persons to share the fees charged for professional services, which would effectively eliminate the need for licensing of most of the profession.

The typical means of getting around this problem is for your husband to create a revocable trust, name himself as trustee and you as successor trustee, make you the beneficiary upon his death, and then assign his interest in the LLC to the trust. Then if he dies, you own the LLC, which can no longer operate, because its professional owner is deceased, but you are entitled to the value accumulated in the LLC, as beneficiary.

This can also be accomplished via a Will devise, but then probate expenses will be incurred.

For an estate planning attorney referral, see this link.

Hope this helps.

NOTICE: My goal here is to educate others about the law. I am always available to answer your follow-up questions after you click Accept – however, if you do not click Accept, the website gets paid, and I receive nothing. This is true, even if you are on a subscription plan. So please click Accept, so that I will be able to continue to provide this service for others in the future.

socrateaser and 3 other Business Law Specialists are ready to help you