Create a PLLC: How Does It Differ from Other Business Structures?

create a PLLC

Are you a doctor? A lawyer or an architect? If you wish to establish your own business with your colleagues, you may face a unique set of legal and regulatory challenges. To address them, you may choose a Professional Limited Liability Company (PLLC). If you wish to create a PLLC, you may use the Corporation Center to get the documents that you require to start one. 

Create a PLLC with the Help of the Corporation Center 

PLLC is a specialized form of a business entity designed to provide certain licensed professionals with limited liability protection while allowing them to conduct their practice or business. PLLCs are typically formed by individuals or groups of professionals who require state licensure to practice their professions. 

To help you create one, you may use the Corporation Center. We have the necessary documents that you need to make the transactions a lot faster. When you examine our site, you will find that all documents are actually here so you can start creating your company. 

Key Features of a PLLC 

Limited Liability 

It is similar to a traditional LLC. A PLLC offers its members limited liability protection. It means that the member’s personal assets are shielded from business debts and liabilities. Thus, you and your colleagues are protected from financial loss beyond your investment in the company. 

Professional Services

PLLCs are specifically designed for professionals who provide services that require state licensing, such as doctors, lawyers, engineers, architects, accountants, and therapists. In many states, these professionals are not allowed to form standard LLCs or other business entities because of strict licensing regulations. 

State Licensing Requirements 

To form a PLLC, all members must hold the required professional licenses in the state where the PLLC operates. Compliance with state licensing regulations is a fundamental requirement. 

Management and Ownership

PLLCs can be member-managed or manager-managed, depending on the structure chosen by the members. Members have the flexibility to define the management and ownership structure of the LLCs in their operating agreement. 

Differences Between PLLCs and Other Business Structures

Professional Licensing Requirement

  • PLLC: Members of a PLLC must hold professional licenses relevant to their practice. State regulatory bodies oversee and often restrict the formation of PLLCs to licensed professionals. 
  • LLC: Traditional LLCs do not have such licensing requirements. They are open to a wide range of businesses and individuals. 

Limited Liability Protection 

  • PLLC: The members enjoy limited liability protection. Their personal assets are shielded from personal assets from business debts and liabilities. In a way, it is similar to traditional LLCs. 
  • Sole Proprietorship or Partnership: In contrast, sole proprietorships and general partnerships do not provide limited liability protection. That is, the member’s personal assets are at risk.

Governance and Structure 

  • PLLC: It allows flexibility in determining management and ownership structures. It gives members the freedom to establish roles and responsibilities tailored to their professional practice. 
  • Corporation: While PLLCs have a degree of flexibility, corporations offer more formalized management structures, such as a board of directors and officers, which may be less suitable for some professionals. 


PLLCS are typically taxed as pass-through entities. It means that business profits and losses pass through to the individual members’ tax returns. 

C Corporation, on the other hand, faces double taxation, with profits taxed at the corporate level and again at the individual level when distributed as dividends. 

create a PLLC

Start Your PLLC

There are tons of benefits when you choose and create a PLLC over other structures. If you need certain documents to start your PLLC, please browse our site. Or call us if you need tailored assistance.