This entity represents a limited liability law firm, specifically a professional limited liability company (PLLC). This structure allows professionals, such as attorneys, to form a business that provides the liability protection of a limited liability company, while still adhering to professional regulations. For example, if a client sues for malpractice, the personal assets of the firm’s members are generally protected, though professionals remain liable for their own negligence.
The utilization of this legal structure offers several benefits. It shields personal assets from business debts and lawsuits, fosters credibility with clients, and simplifies business operations with clear ownership and management structures. Historically, this type of firm was established to allow professionals to conduct business while mitigating personal financial risk, creating a more stable and attractive environment for practitioners.
