PLLC vs. LLC in Texas: what licensed professionals need to know

You make a lot of important decisions when you start a business, and your business structure is one of the biggest. The right structure from the beginning gives your business the protection it needs to thrive.

An LLC or PLLC is the best choice for many businesses because of the protection an LLC provides. But you also need to know which one fits your business. Texas has specific rules on which professionals can form a PLLC and how it works, and for some practitioners the choice isn’t optional.

There are general differences between a PLLC vs LLC, and it helps to understand that background. This article covers who qualifies for a Texas PLLC, how liability works, and when it makes more sense than a standard Texas LLC.

Texas LLC vs. PLLC at a glance

Item	Texas LLC	Texas PLLC
Who can own it	Any individual or entity	Licensed professionals and qualifying professional entities
Business scope	Any lawful business	Limited to the professional service it’s formed for
Certificate of formation	Form 205, $300	Form 205 with a professional purpose, $300
Liability for other members’ malpractice	Generally none	Generally none, unless you supervised the work
Liability for your own malpractice	Yes	Yes
Taxes	Pass-through by default; Texas franchise tax	Same

Who needs a PLLC in Texas?

Texas law limits PLLC formation to “professional individuals,” meaning people licensed to provide a specific professional service in Texas or another jurisdiction.

The Texas Secretary of State publishes a chart of permissible entity types by licensed profession showing which professions must use a PLLC or PC, which can choose between an LLC and a PLLC, and which can only use an LLC. Because the chart hasn’t been updated since 2017, confirm with a Texas business attorney or the Secretary of State that nothing has changed for your profession before filing.

These are examples of professions the chart lists as needing a professional entity such as a PLLC.

• Attorney
• Athletic trainer
• Real estate or home inspector
• Medical physicist
• Psychiatrist
• Veterinarian

These are examples of professions that can use either an LLC or a PLLC.

• Architect
• Chiropractor
• Insurance agent or broker
• Pharmacist
• Physical therapist
• Private investigator

And these are examples of professions Texas limits to a standard LLC.

• Real estate appraiser
• Cosmetologist
• Electrician
• Landscape architect
• Surgical assistant

Qualified professional organizations can also be members of a Texas PLLC, providing the same professional services through licensed people. Being licensed doesn’t automatically mean a profession qualifies for a PLLC; Texas law decides which professions are authorized. A Texas business attorney can confirm whether yours qualifies before you file.

LLC vs. PLLC in Texas: the key differences

There are four main differences between a Texas LLC and a PLLC.

Ownership eligibility

A Texas LLC is open to any individual or entity and has no licensing requirements.

A PLLC is limited to licensed professionals or professional organizations as defined by Texas law. (Even some licensed professionals won’t qualify.)

Scope of business

A Texas PLLC is limited to the professional services it’s formed to provide and can’t branch out into unrelated business activities.

That limit can be a benefit, because it keeps the PLLC focused and makes it harder for a member to commit it to obligations outside the professional scope.

Standard LLCs have no such restriction and can add unrelated services, as long as they’re lawful.

Malpractice liability

Both structures shield members from the general debts and liabilities of the entity. If the business has a financial loss or is sued over a business debt, your personal assets, like your home, are generally protected.

With a Texas PLLC, malpractice claims arising from one member’s professional negligence generally attach to the PLLC and don’t pass through to the other members personally, as long as they had no supervisory role in the negligent work.

A member who directly supervised the person who committed the malpractice can still be personally exposed. This is one reason many practitioners no longer choose a general partnership, where one partner’s malpractice can create personal liability for all partners regardless of supervision.

Each PLLC member stays personally liable for their own malpractice. The PLLC doesn’t shield a member from claims about their own professional errors; that’s what professional liability (errors and omissions) insurance is for.

Formation requirements

Both a Texas LLC and a PLLC are formed by filing a certificate of formation (Form 205) with the Texas Secretary of State. The filing fee is $300 for either.

A PLLC’s certificate must state the specific professional service it will provide, and its members or managers must hold the required license. A standard LLC doesn’t need either.

You can find the business forms on the Texas Secretary of State website.

What is the advantage of a PLLC over an LLC in Texas?

When given a choice, many professionals pick a PLLC. It has four main advantages over an LLC in Texas.

1. Protection from other members’ malpractice claims. This is especially valuable in group practices like law firms, medical groups, or dental practices.
2. A restricted business scope as a safeguard. It may feel limiting, but it stops members from committing the entity to outside obligations.
3. Professional credibility. Using “PLLC” in the business name signals a formally structured professional practice to clients and patients.
4. No unlicensed owners. Unlicensed investors can’t come in and take control of the practice.

Remember that a PLLC doesn’t protect a member from their own malpractice, so professional liability insurance is still a must.

Joint practice PLLCs in Texas

Under Texas Business Organizations Code § 301.012, only specific combinations of licensed professionals can jointly form and own a PLLC, rather than any related professions. The statute allows doctors of medicine, doctors of osteopathy, podiatrists, and chiropractors to form a PLLC together, and physicians to form one with physician assistants (though a physician assistant can’t serve as an officer). Other combinations aren’t automatically allowed just because the professions are related.

In a joint practice PLLC, no member has authority over another member’s clinical decisions. Each practitioner keeps full authority over their own professional judgment, whatever their ownership stake.

PLLC vs. LLC taxes in Texas

There are no significant tax differences between PLLCs and LLCs in Texas.

• Both are pass-through entities by default, and both can elect S corp or C corp taxation.
• Both are subject to the Texas franchise tax, which isn’t owed below the no-tax-due revenue threshold ($2.65 million for 2026 and 2027), though a Public Information Report is still filed each year.

Talk to a tax professional before making any tax election.

Which is right for your Texas practice?

For some professions it isn’t a choice. If you do have one, think through three situations.

• If your profession qualifies under the Texas PLLC statute and your work carries malpractice risk, a PLLC is likely the right choice.
• If your profession doesn’t qualify, a standard LLC is the only option.
• If you’re a solo practitioner with no partners, the malpractice protection of a PLLC counts for less, though other benefits may still apply.

Texas rules are specific, so confirm eligibility with a Texas business attorney before filing.

Tailor Brands helps business owners handle the filing and formation process in Texas, including the Texas registered agent, so you can focus on building your practice.

Next steps

The LLC vs. PLLC decision in Texas is shaped by statute. Who qualifies, what services can be offered, and how liability is allocated are all set by Texas law.

Rules differ by profession, and getting them wrong can cause problems down the road. Speak with a Texas attorney to make sure you’re following the rules for your profession.

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