If you’re starting a business and looking for liability protection, you’ve probably come across both LLC and PLLC. While they sound similar, they serve different purposes — especially when it comes to licensed professionals.
In this article, we’ll break down the key differences between an LLC (Limited Liability Company) and a PLLC (Professional Limited Liability Company) so you can choose the right structure for your business.
🏢 What Is an LLC?
An LLC, or Limited Liability Company, is a flexible business structure that provides:
- Personal liability protection for its owners (called members)
- Pass-through taxation, meaning profits/losses flow to the owner’s personal tax return
- Flexibility in management and ownership
- Easy formation and maintenance
LLCs are used for a wide range of businesses including:
- E-commerce stores
- Marketing agencies
- Real estate firms
- Consulting businesses
- Tech startups
🧑⚕️ What Is a PLLC?
A PLLC, or Professional Limited Liability Company, is a special type of LLC designed for licensed professionals.
This includes fields like:
- Doctors
- Dentists
- Lawyers
- Architects
- Accountants
- Therapists
- Engineers
Not everyone can form a PLLC. You must be licensed in your profession by the state where you’re forming the PLLC. Some states require licensed professionals to form a PLLC instead of a regular LLC.
🔍 Key Differences Between an LLC and PLLC
| Feature | LLC | PLLC |
|---|---|---|
| Who can form it | Anyone (individuals or groups) | Only licensed professionals |
| Licensing required? | No | Yes — all members must be licensed |
| States that require PLLC | Varies by state | Some states require it for professionals |
| Formation approval | Directly with Secretary of State | Often needs approval from state licensing board first |
| Purpose | General businesses | Regulated professional services |
⚖️ Legal Protections: Are They Different?
Both LLCs and PLLCs offer limited liability protection. That means:
- Your personal assets (like your house or car) are protected from business debts and lawsuits.
However, there’s one major exception for PLLC members:
PLLCs do NOT protect you from malpractice claims.
If you commit professional negligence (e.g., a doctor misdiagnoses a patient), you can still be sued personally — even if you operate under a PLLC.
But your business partner’s malpractice won’t put your personal assets at risk. This shared protection is one reason PLLCs are useful when multiple professionals are involved.
📝 Do You Need an LLC or a PLLC?
Here’s a quick guide:
Choose an LLC if:
- You run a general business (e.g., e-commerce, IT services, coaching)
- You’re not offering regulated professional services
- You don’t need a state license to operate your business
Choose a PLLC if:
- Your service requires a state license
- You are in a regulated field (law, medicine, accounting, etc.)
- Your state requires PLLCs for licensed professionals
🏛 States That Require PLLCs
Not all states allow PLLCs — and some require them. Examples include:
- Required: New York, California, Texas (for many professions)
- Optional or Not Offered: Some states allow professionals to form either an LLC or PLLC, while others may only allow PCs (Professional Corporations)
Always check with your state’s licensing board or Secretary of State.
📦 Can FormLLC Help with PLLCs?
Yes! At FormLLC, we assist both general business owners and licensed professionals in forming LLCs and PLLCs.
✅ We check your state’s rules
✅ Handle licensing board approvals (if required)
✅ Provide registered agent service and EIN
✅ Help draft your operating agreement
Contact us today to get started:
📧 contact@formllc.us
🌐 www.formllc.us
📱 WhatsApp: +91 6202619173
🧠 Final Thoughts
While both LLCs and PLLCs offer personal liability protection and tax flexibility, the main difference lies in who can form them and what type of services they provide.
- LLC = Ideal for most small businesses
- PLLC = Required for licensed professionals in regulated industries
Before you form a business, make sure you understand your state’s rules — and choose the structure that best protects your profession and your future.