Updated October 2026: clarified which professions must use a professional entity and corrected the form number (Form 206).
The following is a brief explanation of the Texas PLLC formation process from Peters Kussmaul Crosier PLLC corporate partner Robbie Crosier.
Many licensed professionals in Texas, including physicians, dentists, attorneys, veterinarians, and licensed counselors, must use a professional entity, such as a professional limited liability company (PLLC), rather than a standard limited liability company when they practice through an entity. Others, such as CPAs and architects, can choose either a PLLC or a standard LLC. A PLLC in Texas is designed to provide professional services that require a state license, offering limited liability protections similar to an LLC but with restrictions fitting to professional entities.
Step 1: Determine Eligibility
Before starting the process, confirm which entity types your profession may use under Texas law. Professions such as medicine, law, and dentistry require a professional entity (physicians may use a PLLC or a professional association, lawyers a PLLC or a professional corporation, and dentists any of the three), while others, such as accounting and architecture, allow a standard LLC as well. The Texas Secretary of State has released a helpful list that can help you determine whether a PLLC or a different entity type is right for your practice. You can find that list here: https://www.sos.state.tx.us/corp/forms/entitychart.pdf.
Step 2: Name Your PLLC
When preparing your certificate of formation to apply for your PLLC, make sure to include the organizational designation “PLLC” or “Professional Limited Liability Company” at the end of the company name. It’s important to note that if you apply to use a business name that an existing Texas business entity is already using, your application will be denied. For this reason, it’s important to run a name clearance search through the Texas Secretary of State’s SOSDirect portal prior to filing.
Step 3: Appoint a Registered Agent
Texas mandates every PLLC to designate a registered agent—an individual or business entity authorized to accept legal documents on behalf of the PLLC.
Step 4: File the Certificate of Formation
File the Certificate of Formation for a PLLC (Form 206) with the Texas Secretary of State. This document contains key information about your PLLC such as its name, registered agent's details, the professional service it will provide, its management structure, and the names of its initial managers (or, if it has no managers, its initial members).
Step 5: Develop an Operating Agreement
While Texas does not legally require operating agreements for PLLCs, having one is strongly advised. This agreement stipulates the operation of your PLLC and sets clear roles and responsibilities for members. If your business is ever caught up in a lawsuit, having a strong operating agreement can help prevent the opposing party from accessing your personal assets.
Step 6: Secure an Employer Identification Number (EIN)
Obtain an EIN from the Internal Revenue Service (IRS) for taxation purposes. The EIN application is available online on the IRS website here: https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online.
Step 7: Comply with Licensing Requirements
A PLLC in Texas must adhere to professional licensing or regulatory requirements. This includes maintaining an active professional license for the service the PLLC provides, if such a license is required by your specific area of practice.
Bear in mind, a PLLC can be owned by a single licensed professional or multiple licensed professionals. It cannot be governed by an unlicensed professional. If your business is currently an LLC but should be operating as a PLLC, it can become a PLLC by filing a certificate of amendment to its certificate of formation with the Texas Secretary of State (an amendment, not a conversion), along with any needed amendments to the company agreement.
While the PLLC structure doesn't offer additional legal benefits compared to an LLC, it becomes a necessity when mandated by professional licensing requirements. Consequently, if your business does not require a PLLC, forming an LLC is often the preferred choice due to its less restrictive ownership requirements. As always, forming a PLLC is just the first step—operational needs, regulatory compliance, and adaptability are essential for longevity and success.
Ready to form your practice? Our Texas PLLC formation team can handle the filing, the company agreement and the setup.
This article is general information as of the date shown above, not legal advice for any particular situation. The law can change after an article is written.
Partner, Peters Kussmaul Crosier PLLC
