Choosing Between PLLC or PC: Incorporation Options for Small Businesses

Chances are you’re probably familiar with entity formations like limited liability companies (LLCs) and corporations. How about professional limited liability companies and professional corporations?

What does it mean to incorporate as a PLLC or a PC? Let’s look at these legal structures and who is eligible to incorporate as one of these entities.

Understanding PLLC Formation through LLC Definition

One of the best ways to understand what a PLLC stands for in business is by learning about what it means to form an LLC. After all, a PLLC is just a regular LLC specifically for licensed professionals, which adds a few requirements to the registration process.

What’s an LLC?

An LLC is a business structure which allows the business to act as a separate legal entity. Incorporating as an LLC allows entrepreneurs to separate their personal assets, including houses and cars, from business assets with liability protection. In the event of an unforeseen circumstance which negatively effects the business, such as a lawsuit, liability protects the owner’s personal belongings from potential seizure or impact.

Outside of liability protection, an LLC is also a flexible entity. It’s easy to run and manage and has few compliance requirements.

What’s a PLLC?

A PLLC is a more specialized version of an LLC. Like an LLC, it provides professionals with liability protection to separate personal and professional assets. Professional LLCs, in states where there is PLLC legislation, may limit personal liability for claims related to the malpractice or negligence of a partner(s). This ensures one partner of the PLLC is not held fully responsible for claims as they relate to a co-partner.

However, the individual(s) incorporating as a PLLC is not an everyday entrepreneur. They must be professionals with licenses. These individuals must work in professional occupations where a license is required by the state to provide their specific services. A few examples of professionals which may form a PLLC include lawyers, doctors, dentists, architects, and engineers.

PC in Business: Understanding its Role and Significance

Incorporating as a standard corporation is typically a good fit for businesses which wish to expand to have a global presence, issue shares of stock, or take their company public with an IPO.

Like a PLLC, a professional corporation (PC) may only be formed by individuals in select professions. These may include doctors, lawyers, and architects as well as accountants, optometrists, and dentists.

The partner which incorporates as a PC receives liability protection. This provides two forms of protection. It ensures the partner’s personal assets receive protection from any malpractice or negligence of the practice’s associates. Incorporating as a PC also protects the partner. It makes sure they are not responsible for any liabilities relating to the owners.

Important Considerations Before Choosing Between PLLC or PC Formation

Now that you understand the difference between a PC and PLLC, it’s a good idea to check in with the state in which you wish to do business. When considering PLLC vs PC, knowing the specific requirements of your state is crucial. Make sure the state has authorized PLLC and PC legislation prior to filing to incorporate as the formation.

In addition, the state of incorporation may require proof of your license. You may need to show your state license in your existing professional occupation as an example of proof. Reach out to the Secretary of State in the state you wish to do business in to see if there are any additional proof examples you’ll need to provide prior to filing, too.

Still uncertain as to which entity to incorporate as? Speak with a legal professional or CPA for additional guidance and advice.

Let MyCorporation incorporate your small business today. Visit us at or call us at 877-692-6772.