Texas PLLC (Professional Limited Liability Company)

What is a PLLC in Texas?

A PLLC is structured much like a regular LLC, but here’s the catch: it can only be formed by a licensed professional, meaning someone who must have a state-issued license in order to practice their profession. (The “p” in PLLC stands for “professional.”)

What qualifies as a licensed professional in Texas?

In Texas, licensed professionals generally fall into one of nine categories:

1. Doctors of medicine
2. Doctors of osteopathy
3. Podiatrists
4. Mental health professionals (including psychologists, therapists, and licensed professional counselors)
5. Optometrists
6. Therapeutic optometrists
7. Chiropractors
8. Dentists
9. Veterinarians

Most licensed professionals in Texas are required to form a professional entity (like a PLLC or a Professional Corporation) instead of a standard Texas LLC or Texas Corporation. But some professions are more flexible. Some architects and engineers, for example, can choose whether to form a traditional LLC or a PLLC.

To see whether your line of work requires you to form a professional entity, check the state’s Guide for Determining Permissible Entity Types for Licensed Professionals.

Who must form a PLLC in Texas?

Most licensed professionals in the medical field must form a professional entity in Texas in order to provide business services for their licensed profession. What’s more, the business owner must actively hold a license for the service their PLLC provides. In other words, an osteopath cannot form a PLLC to provide psychotherapy services, even if the osteopath herself hires a licensed psychotherapist to provide those services.

There are a few exceptions to this rule. For example, medical physicians and physician assistants are permitted to co-own a PLLC in Texas, even though they technically hold different licenses. The same is true for some mental health professions. See: TX Bus Orgs § 301.012.

How to Form a PLLC in Texas

To form a Professional LLC in Texas yourself, just follow our 3-step guide:

1. Get a Registered Agent

Like all business entities registered with the Texas Secretary of state, your PLLC must have a Texas Registered Agent. This person or entity is required to maintain a physical address in the state of Texas and be available at that address during normal business hours to receive legal notices and important documents from the state.

Need a registered agent you can trust? We offer speedy and professional service for just $35/year.

2. Name Your PLLC

This may seem like the easy part, but it’s a good idea to be aware of the state’s business name restrictions before you settle on a name for your professional LLC. For example, your PLLC’s name:

• Must include the phrase “professional limited liability company” or “PLLC”
• Cannot be too similar to the name of any existing business entity, or fictitious name (DBA) registered to an active entity in the state
• Cannot indicate that the entity performs services it’s practitioners are not licensed to perform, or falsely imply that it is affiliated with a government entity

If your name doesn’t comply with the above rules, your registration will be rejected by the Texas Secretary of State and you’ll have to start from scratch.

3. Submit a Certificate of Formation

A Certificate of Formation is the document you have to file with the state to officially form your PLLC. It must include:

• The name of your PLLC
• The name and address of your Texas Registered Agent
• The name(s) and address(es) of all company members or managers (you’ll have to indicate whether your PLLC will be run by members or managers).
• The type of professional service your PLLC will provide
• Your company’s initial mailing address (for tax purposes)
• Any supplemental provisions not covered by Texas statutes (if applicable)
• Name and address of the organizer (the person or entity filing your articles)
• Date of effectiveness (most people choose option A: “when the document is filed,” but you can also choose a later date)
• Signature of organizer

You can submit this document in one of three ways:

Online:	Via Mail:	In Person:
SOSUpload System	Texas Secretary of State P.O. Box 13697 Austin, Texas 78711-3697	James Earl Rudder Office Building 1019 Brazos St. Austin, Texas 78701

FAQ: Texas PLLC

What is the difference between a PLLC and an LLC in Texas?

The main difference between a Professional LLC and a regular LLC is that a PLLC is formed by licensed professionals who render professional services. (Think: medicine, law, therapy, etc.) In this sense, PLLCs are governed by stricter guidelines than traditional LLCs. For example, only licensed professionals can own a PLLC while anyone can own a regular limited liability company.

That said, the business structure for both entities is roughly the same, in that both are run by either members or managers, and both benefit from liability protection.

In other words, a PLLC is simply an LLC for licensed professionals.

How much is a PLLC in Texas?

The Texas Secretary of State charges $300 (plus credit card fees) for a Certificate of Formation, the same as a regular LLC. When you form your PLLC with us, we take care of everything for you for just $454, a price that includes state fees and one year of Texas Registered Agent service!

Can I convert an LLC to a PLLC in Texas?

Absolutely. The easiest way to convert an existing Texas LLC to a Texas PLLC is by filing a Certificate of Amendment with the Texas Secretary of State ($150). This form must be mailed to the SOS and cannot be submitted online.

What is the advantage of a PLLC over an LLC?

Many licensed professional don’t have a choice between a PLLC or an LLC—they’re required to form a Professional LLC. But, for business owners that do have a choice, forming a professional entity can add an element of trust and, well, professionalism to your business. It means you have a bit more oversight from the state, which might put some clients more likely to go to you for your services.

Licensed professionals who can choose between forming an LLC or a PLLC include: accountants, architects, chiropractors, engineers, geoscientists, insurance agents, among others. This list is not exhaustive.

Do PLLCs pay taxes in Texas?

Yes. PLLCs are subject to the state’s franchise tax, just like most other business entities. See our page on How to File Texas Franchise Tax for more information.