A PLLC, or Professional Limited Liability Company, is an entity type reserved for certain licensed professionals. Only about 30 states authorize the formation of a PLLC and about 11 of those not allowing a PLLC will allow licensed professionals to operate through a regular LLC. Other than the restriction for use by licensed professionals, the characteristics of a PLLC are essentially the same as a regular LLC.

In the 30 or so states that allow a PLLC, it is an alternative to forming a professional corporation rather than a requirement for a licensed professional. The list of professions is left up to each state and is therefore not identical in every state. That said, the professions generally include attorneys, accountants, veterinarians, medical doctors and most other health or healing arts professionals. Other common professionals include psychologists, court reporters, engineers, architects, sometimes real estate licensees, and insurance agents.

For general business obligations, there is no difference in the limited liability protection of a regular LLC and a professional LLC. However, liability in a PLLC often arises from the negligence, or malpractice, of the professional providing personal services. As a matter of public policy, neither a professional providing licensed services nor any principal of a regular LLC is protected from liability for negligence by operating through a PLLC or other limited liability entity. Additionally, most licensing agencies require a licensee operating through a PLLC to provide malpractice insurance or other adequate security.

Most of the provisions of professional LLC Articles and those of a regular LLC are the same. The main differences are that the name of a professional corporation must meet any specific requirements imposed by the licensing agency in that state. These often require that the name include the surname of at least one licensed member. Another requirement is that the Articles must indicate that a professional LLC is being formed. Many states require that approval or written consent be obtained from the licensing board and submitted with the Articles of Organization.

As stated in the previous answer, some states require written consent from the licensing board to be submitted with the Articles of Organization. Other states or licensing agencies require that a registration form be submitted to the agency after the Articles are filed. Still other licensing agencies have no registration requirements at all.

With rare exceptions, states and licensing agencies restrict a professional LLC to engaging in a single profession. They also are generally restricted to providing only licensed activities and not combining any other business operations with the professional LLC services. Some states allow certain types of licensed health providers to be part of the same professional LLC or to form affiliated groups.

Most licensing agencies that restrict PLLC names have a procedure to obtain authorization to use a fictitious business name, or DBA. This is a separate procedure from a DBA that is filed by a regular LLC or other person or entity. The DBA name must still meet certain requirements. For example, the name cannot be misleading, it cannot indicate or suggest that the licensee has any qualifications or provides any services not included or permitted by the license.

The sale or transfer of an ownership interest, called a membership interest, in a professional LLC is restricted. They may only be sold or transferred to another licensed professional in the same profession. Also, if a member becomes disqualified, dies, or becomes mentally incapacitated, it is usually required that the PLLC repurchases or retire the shares.