Form a PLLC, for licensed professionals.

It depends on your state and profession. Some states require licensed professionals to use a PLLC, some require a Professional Corporation, and some allow either or even a standard LLC. The PLLC keeps an LLC's pass-through tax and lighter upkeep; the PC gives you a corporate structure with the same S-corp option. We confirm which forms your state accepts for your license before you file, so you don't choose the one it will reject.

In most states, every member of a PLLC must hold an active license in the same profession the company practices. A therapist's PLLC is owned by licensed therapists, a law firm's by attorneys. Adding a non-licensed investor or spouse as a member usually isn't allowed and can jeopardize the entity or the license. If you need outside capital, that's a structure conversation to have before filing, and we can walk you through the options.

Not from your own. A PLLC shields you from the business's ordinary debts and from a co-owner's malpractice, but you remain personally responsible for your own professional conduct. The license is personal, so the liability that comes with it is too. Professional liability (malpractice) insurance is what covers that exposure, and the PLLC plus the coverage do two different jobs. Carry both, and don't treat the entity as a substitute for insurance.

In the large majority of states, yes: ownership of a PLLC is limited to individuals licensed in the profession, and often the managers must be licensed too. A few states allow a small share of non-licensed ownership in certain professions. Because the rules vary and the penalty for getting it wrong is high, we verify every member's eligibility against your state's professional-entity statute before submitting, and your operating agreement is written to keep ownership inside the profession.

Usually, yes. A PLLC is taxed as a pass-through by default, like any LLC, and it can file an S-corp election if it meets the IRS requirements, which can lower self-employment tax once profit is steady. It adds payroll and a separate return, so it's a math decision rather than an automatic upgrade, and it makes the most sense once your net profit is well above a reasonable salary. We can file the election when the timing works for your practice.

No. Most states have a PLLC, but a handful, notably California, don't offer one and route licensed professionals to a Professional Corporation or another structure instead. The rules also differ on which professions may use a PLLC and what the name must include. This is exactly the kind of state-and-license mismatch that gets a filing rejected, so we confirm your state offers a PLLC for your profession before we submit anything.

Most states require a PLLC's name to include a marker such as "PLLC," "P.L.L.C.," or "Professional Limited Liability Company," and some restrict words that could mislead the public about the services offered. The name also has to be distinguishable from existing entities in the state register. We check it against the state's professional-naming rules and reserve it for you if you're not filing the same day.

Only if the licensing requirement can be met. A PLLC's members generally must hold the relevant US professional license in the state of formation, so licensure matters far more than residency. If you, or your co-owners, hold an active license, non-residents can form a PLLC, and we obtain the EIN from the IRS without an SSN so the company can bank and pay taxes.

It's the risk unique to professional entities: if a member stops being licensed, most states require that person to leave the ownership within a set window, which is why a PLLC's operating agreement includes transfer restrictions. Left unaddressed, a lapsed license can put the entity's good standing in question. We track your annual report, and a compliance calendar can flag renewal dates so a lapse never quietly becomes an entity problem.