How and Why To File a PLLC (Professional Limited Liability Company): Our Guide for 2025

If you own a business for a licensed occupation, you may already be familiar with PLLCs and their potential value for your business. For those of you that could benefit from having a PLLC but need more information about them and what they offer your business, here’s a full breakdown of what you need to know and why they are important!

When you understand the fundamental differences between a PLLC and an LLC, it’s clear and easy to understand which one makes the most sense for your business. So let’s get to it!

Introduction to PLLCs

So what is a PLLC? NerdWallet defines a PLLC as “a business structure that offers personal asset protection for business owners in licensed occupations, such as medicine and law.” The PLLC offers the same kind of benefits, namely asset protection, as an LLC does, but specifically for the fields of practice that are required to have certain licenses to practice business.

You can think of a PLLC almost the same as an LLC, except a PLLC is (Professional Limited Liability Company) is meant to govern businesses (especially partnerships) with professionals within a specific industry. Individual states have different policies for PLLCs and set which industries may be required to form PLLCs to operate.

Let’s move onto where you create a PLLC, what states offer them for business formation, and which states don’t.

What Do I Need to Create a PLLC?

In order to be eligible to create a PLLC, you first need to be a licensed professional in an industry your state allows to create PLLCs. Some common professions that choose to form PLLCs include doctors, attorneys, engineers, and chiropractors, but you will need to look at your state’s policy to determine the full list of industries where forming a PLLC is an option.

Once you determine whether or not your state allows you to create a PLLC, you will need approval from your state’s board that regulates your profession (state medical board, bar, etc.). If you are a licensed professional in your field and your state prefers for your industry to file a PLLC, you can move forward with forming your business in this fashion.

Can I Create a PLLC Anywhere in the U.S.?

No, only certain states allow you to have a PLLC. PLLCs are state specific and there are certain rules regarding PLLCs in the states where they are allowed. So which states are you allowed to create a PLLC?

What States Offer PLLCs?

Arkansas, Arizona, Colorado, District of Columbia, Florida, Idaho, Iowa, Kentucky, Maine, Massachusetts, Michigan, Minnesota, Mississippi, Montana, Nevada, New Hampshire, New York, North Carolina, North Dakota, Oklahoma, Pennsylvania, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington and West Virginia. There are options for filing for your PPLC in your state and MyCorporation can help you decide what level of support you may need during the process.

What States Don’t Allow Licensed Professionals to Create PLLCs?

Alaska, Alabama, California, Connecticut, Delaware, Georgia, Hawaii, Illinois, Indiana, Kansas, Louisiana, Maryland, Missouri, Nebraska, New Jersey, New Mexico, Ohio, Oregon, Rhode Island, South Carolina, Wisconsin and Wyoming.

What are the Differences Between a PLLC and an LLC?

Limitations on members and limitation on individual liability make up the two biggest differences between

So why do you need a PLLC as a licensed professional? Since both PLLCs and LLCs offer asset protection and separation of liability between your company and you personally, what are the main differences between the two?

The main difference between a PLLC and an LLC is that the PLLC has limitations on who can be a member of the PLLC. Where PLLCs are allowed, only certain types of professionals can be a part of a PLLC. This is usually limited to licensed professionals within a specific industry or field.

The other main difference is that with an LLC the members are covered from being individually held liable for unfortunate interactions that customers, clients, or other businesses may have with the LLC. With the PLLC structure, there is still some coverage for the members when it comes to liability, but members can still be individually held liable in cases of malpractice.

For example, if a group of physicians decide to start a PLLC, they can all become members of the PLLC to get the asset and general liability protection that an LLC offers. However, if one of the physicians were to perform a botched operation, surgery, or medical procedure that could be considered medical malpractice, that physician can now be singled out for the action that led to the malpractice claim.

What Steps Do I Need to Take to Form My PLLC?

In some cases, you may be waiting on your state’s board that governs your particular industry before you can form your PLLC, so the PLLC process can take longer than forming an LLC.

You will still need to:

Choose a Name for your PLLC
1. This will be the name you use to market your business to customers/clients.
Choose a Registered Agent
1. Your Registered Agent will be the person who receives important business documents from the state and can act as your point of contact with them.
File Your Articles of Organization
1. These can be your Certificate of Formation or other document recognized by your state that serves a similar purpose.
Finalize Your Operating Agreement
1. Your Operating Agreement will determine what members have which responsibilities in the business and outline items like how the business will operate on a day to day basis.
Apply for Your EIN
1. Your EIN allows you to classify yourself as an employer and hire full time employees for your PLLC.
Choose Your Tax Classification
1. This will determine how your business pays taxes every year.

Conclusion

Hopefully this gave you a crash course in PLLCs, what PLLCs mean for you, whether or not you need one, and the process you need to go through to apply for and form your PLLC! Whether you’re a physician, dentist, architect, engineer, or other licensed professional (as outlined by your state’s law), you can follow this framework to get your business started as a PLLC once you’ve gotten your license and have found your organization’s partners. And the best place to file for your PLLC is MyCorporation!

Deborah Sweeney

Deborah Sweeney is an advocate for protecting personal and business assets for business owners and entrepreneurs. With extensive experience in the field of corporate and intellectual property law, Deborah provides insightful commentary on the benefits of incorporation and trademark registration. Education: Deborah received her Juris Doctor and Master of Business Administration degrees from Pepperdine University, and has served as an adjunct professor at the University of West Los Angeles and San Fernando School of Law in corporate and intellectual property law. Experience: After becoming a partner at LA-based law firm, Michel & Robinson, she became an in-house attorney for MyCorporation, formerly a division in Intuit. She took the company private in 2009 and after 10 years of entrepreneurship sold the company to Deluxe Corporation. Deborah is also well-recognized for her written work online as a contributing writer with some of the top business and entrepreneurial blogging sites including Forbes, Business Insider, SCORE, and Fox Business, among others. Fun facts/Other pursuits: Originally from Southern California, Deborah enjoys spending time with her husband and two sons, Benjamin and Christopher, and practicing Pilates. Deborah believes in the importance of family and credits the entrepreneurial business model for giving her the flexibility to enjoy both a career and motherhood. Deborah, and MyCorporation, have previously been honored by the San Fernando Valley Business Journal’s List of the Valley’s Largest Women-Owned Businesses in 2012. MyCorporation received the Stevie Award for Best Women-Owned Business in 2011.