Texas PLLC Formation Service for Licensed Professionals

A professional limited liability company (PLLC) is a type of limited liability company created to provide a professional service that requires a state license. It is governed by the same rules as a regular Texas LLC, plus the professional entity provisions in Chapters 301 and 304 of the Texas Business Organizations Code.

We charge a $500 flat fee to create a Texas PLLC (+ the $300 state filing fee). That is the same price as our standard LLC formation. An EIN is available for an additional $75.

A regular LLC is preferred when you have the choice, because a PLLC restricts who can own and manage the company. A PLLC is typically used only when your licensing board requires it. The Texas Secretary of State publishes a chart showing which entity types each profession may use. We will confirm the right choice during your consultation.

Licensed professions that Texas treats as a professional service generally must use a professional entity such as a PLLC. Common examples include attorneys, physicians, dentists, nurses, psychologists, licensed counselors, and veterinarians. Other licensed professionals, including CPAs, architects, engineers, and real estate brokers, can choose either a PLLC or a regular LLC. Your licensing board can override these general rules. See the table on this page, the Secretary of State's permissible entity chart, or ask us.

A Texas PLLC is formed by filing a Certificate of Formation for a Professional Limited Liability Company (Form 206) with the Texas Secretary of State and paying the $300 filing fee. Here are the steps, whether you do it yourself or have us handle it for you.

1. Confirm your profession can use a PLLC. Every owner and manager of a PLLC must be licensed to provide the PLLC's professional service (Tex. Bus. Orgs. Code § 301.007). A few license types can share ownership: physicians (MD and DO), podiatrists, and chiropractors can jointly own a PLLC, as can physicians and optometrists, and licensed mental health professionals such as psychologists, clinical social workers, LPCs, and LMFTs (§ 301.012). The Secretary of State's permissible entity chart shows which entity types each profession may use.
2. Choose a name. The name must include "Professional Limited Liability Company," "PLLC," or "P.L.L.C.," must be distinguishable from existing Texas entities, and must follow any naming rules set by your licensing board. See our Texas business name rules.
3. Appoint a registered agent. The PLLC needs a registered agent with a physical street address in Texas (no P.O. boxes or mailbox services). See selecting a registered agent.
4. File Form 206 with the Secretary of State. The form describes the professional service the PLLC will provide and lists its members or managers, all of whom must be licensed. Filing online through the state's SOSPortal costs $300. Online filings are typically approved in 3 to 4 business days (see our recent approval times). You can also choose a delayed effective date up to 90 days out.
5. Sign a Company Agreement. The Company Agreement is not filed with the state, but it sets out ownership, management, and what happens if an owner leaves the practice or loses their license.
6. Get an EIN. Apply for the PLLC's federal tax ID (EIN) with the IRS so you can open a business bank account and handle payroll.
7. Register the firm with your licensing board, if required. Some boards license the firm, not just the individual. For example, a CPA firm that provides attest services or uses the title "CPA firm" needs a firm license from the Texas State Board of Public Accountancy (Tex. Occ. Code § 901.351), and any firm offering engineering services must register with the Texas Board of Professional Engineers and Land Surveyors. Check with your board before you open your doors.

Most of our PLLC clients would rather spend their time on their practice than on paperwork. For a $500 flat fee (plus the $300 state filing fee), we confirm your profession qualifies, run a name check, prepare and file your Form 206 the same day, and draft your Company Agreement. An EIN is available for $75 more. No office visit required.

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Yes. A PLLC can have a single owner or multiple owners, as long as each owner is licensed to provide the professional service the PLLC offers.

No. Texas law limits ownership of a PLLC to licensed professionals (or professional organizations). The governing persons of the PLLC must also be licensed to provide the same professional service. A spouse, investor, or business partner who does not hold the license cannot be an owner or manager.

There are no additional legal benefits to a PLLC over an LLC. Both provide the same liability protection for the owners' personal assets. A PLLC exists so that licensed professionals can use the LLC structure while still complying with their licensing rules. Note that no entity shields a professional from liability for his or her own malpractice.

The name must include "professional limited liability company," "PLLC," or "P.L.L.C." The name also has to be distinguishable from existing Texas entities and comply with your licensing board's rules. We run a name check before filing.

We file the same day we receive your information. Texas PLLCs are typically approved by the Secretary of State in 3 to 4 business days. Once the state approves your PLLC, we email you the complete package. Processing times fluctuate with the state's filing volume, so see our recent approval times for what we're seeing on our own filings.

Yes. An existing Texas LLC can be converted to a PLLC. See our page on changing a Texas LLC to a PLLC.

The same as an LLC. By default, a single-member PLLC is taxed as a sole proprietorship and a multi-member PLLC is taxed as a partnership. A PLLC can elect S corporation taxation. See our LLC taxation page.

Yes. We form PLLCs for licensed professionals anywhere in Texas. Everything is handled remotely by email, phone, and e-signature.