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A PLLC is a professional limited liability company. Doctors, lawyers, accountants and other licensed professionals use it in states that set up a separate track for their work. A standard LLC is open to almost any lawful business. A PLLC is tied to a license.
Why states have a separate form
States license some professions to protect the public. When a licensed person forms a company, the state often wants the license to stay with the people who hold it. So the law may limit who can own the company, who can be a member, and what the company can do.
There is no single national rule. Each state decides which professions count, whether a PLLC exists, and what it requires.
What changes from a regular LLC
These items often differ. Confirm each with your state.
- Name. The ending may need to read PLLC or a similar form. Our LLC name rules guide covers the usual endings, and your state may add its own.
- Ownership. Members may need to hold the license for the profession.
- Approval. A licensing board may need to approve the company or give a letter before you file.
- Purpose. The company may be limited to the licensed service.
- Liability. Many states keep a professional personally responsible for their own professional acts, even in a PLLC.
Taxes
The IRS does not have a separate tax class called PLLC. On its LLC page, the IRS says an LLC with one member is treated as disregarded as separate from its owner by default, and an LLC with two or more members is a partnership by default. An LLC can also file Form 8832 to elect another classification. Whether your PLLC follows those same rules is a question for your tax professional. Read LLC taxes first.
Check with the state and the board
Start with your state's business filing office, then your licensing board. Ask these things.
- Does my profession need a PLLC, can it use a regular LLC, or does the state require another entity?
- Which name ending is accepted?
- Do I need approval from the board before I file?
- Who may be an owner or manager?
- Are there extra reports or insurance rules?
Our state guides, such as Texas, Florida and New York, show the filing office and fees for forming an LLC in each state. They do not cover the professional rules for each license, so you need the board for that part.
When a PLLC is the wrong tool
Not every business that sells expertise is a licensed profession. A consultant, designer or marketer without a state license usually does not need a PLLC. If you are unsure, compare the options in business entity types or the LLC and corporation guide.
This is general information, not legal or tax advice. An attorney who knows your profession can confirm the right structure.
When you are ready to file, see start an LLC.