Texas PLLC (Professional Limited Liability Company)

When this entity is usually a good fit

• Licensed professionals practicing through a liability-limited structure
• Professional firms wanting LLC-like flexibility with professional compliance
• Multi-member licensed practices with contractual governance needs

Key risks and watch-outs

• Formation and ownership eligibility depend on profession-specific rules
• Entity and owner credentials can require board-level validation
• Malpractice and professional-liability risks remain profession-specific

Step-by-step formation workflow

1. 1) Verify board/entity eligibility

   Confirm your profession can use PLLC and verify ownership/licensure limits before naming or filing.

2. 2) File professional formation documents

   Use current SOS professional LLC form and include any profession-required statements.

3. 3) Finalize operating agreement with professional restrictions

   Document voting, transfer, supervision, and ownership controls consistent with licensing rules.

Taxes, costs, and annual compliance

• Texas franchise tax and report obligations still apply unless exempt under current rules.
• Professional insurance and board compliance often drive higher annual carrying cost than standard entities.
• Review transfer restrictions and ownership succession planning early.

Compliance timeline checkpoint

1. Formation Month · Days 1-30

   Finalize filings, EIN, ownership records, and operating governance documents.

2. Quarterly Operations · Every 90 days

   Validate registered agent, ownership changes, and internal record hygiene.

3. Annual Compliance Cycle · Each report year

   Prepare franchise tax and public-information filings by current Texas deadlines.

Professional-entity rule reminders

• PLLC rules depend on profession-specific statutes and licensing board guidance.
• Not all professional services can use the same entity type; verify before filing.
• Entity choice does not replace malpractice coverage or professional standards.