Licensing
Professional LLC rules in all 50 states and DC: the $700-per-member bill, the states with no PLLC, and whose malpractice you still carry
A side-by-side table of professional LLC rules in every state and DC: whether a PLLC exists, what it must be called, what it costs, who may own it, and whether you answer personally for the people you supervise. Pennsylvania bills $700 per member a year, California allows no professional LLC at all, and a dozen states make you liable for a supervised colleague's malpractice without any fault of your own.
A Pennsylvania professional LLC with ten licensed members owes the state $7,000 every year. Pennsylvania requires an LLC rendering listed professional services to form as a “restricted professional company,” and each one files an annual registration by April 15 at $700 per member, according to the Department of State (15 Pa.C.S. § 8998, base fee adjusted for inflation every third year). A filing more than 30 days late carries a $500 penalty that becomes a lien. The formation fee is $125. The annual bill is the real price, and it grows with every partner the firm admits.
The count has a detail that changes the math. The statute counts members who were licensed persons with a principal residence in Pennsylvania on December 31. A ten-member Philadelphia firm whose four partners live in New Jersey pays for six: $4,200, not $7,000. Where the partners live on New Year’s Eve is a line item.
That is one state. The professional LLC is not a single product sold in 51 versions with different prices. It is 51 different answers to five questions: whether the form exists, what it must be called, what it costs, who may own it, and whose malpractice the owners still carry. The tables at the end of this page answer all five for every state and DC. The sections before them explain the patterns, and the one that should change how a practice is run is the fifth.
A Pennsylvania professional LLC pays $700 a year for each member who lives in Pennsylvania, so the firm’s annual bill tracks its partner count.
Three kinds of state
Roughly 30 jurisdictions have a professional LLC statute of their own. Florida’s runs through its Professional Service Corporation and Limited Liability Company Act (Fla. Stat. ch. 621). Michigan’s is Article 9 of its LLC Act, with its own articles form. New York’s is Article 12 of its LLC Law. In these states the PLLC is a distinct regime, with its own ownership rule, its own name rule and, usually, its own liability rule.
A second group lets an ordinary LLC do professional work under the licensing board’s rules, with no separate form. Alaska’s LLC Act says an LLC may be organized “for any lawful purpose, including the rendering of a professional service” (AS 10.50.010). Ohio’s professional association chapter says it does not preclude an ordinary LLC from rendering professional services (R.C. 1785.09). Indiana allows it “to the extent authorized by the licensing authority” (IC 23-18-2-2(15)). Delaware, New Jersey, South Carolina, Wisconsin and Wyoming have no professional LLC provision at all. In these states, the question of who may own a medical or engineering LLC is answered by the board, not the LLC statute, and the answer differs by profession.
California is alone in the third group. A domestic or foreign LLC “may not render professional services,” according to the Secretary of State (Cal. Corp. Code § 17701.04). California physicians, dentists, lawyers and accountants use a professional corporation. The details are on licensed professions.
Delaware, the state most associated with the LLC, has no professional LLC statute.
Who may own one
Most PLLC states require every member to hold the license the firm practices. Florida limits members to people licensed for “the same professional services” (Fla. Stat. § 621.051). Michigan requires each member and manager to be licensed in one or more of the firm’s services (MCL 450.4904). New York voids any interest held by a non-licensee, with an exception for accounting firms (N.Y. Ltd. Liab. Co. Law § 1207).
The license does not have to be local everywhere. Iowa lets a PLLC issue interests to an individual licensed “in any state” (Iowa Code § 489.1108). Texas counts a professional licensed “in this state or another jurisdiction” (Tex. Bus. Orgs. Code § 301.003). Maine, Mississippi and Tennessee follow the same approach. New Hampshire does not: its members must be natural persons “authorized by law in this state” to render the service, or qualifying firms (RSA 304-D:7).
A practice with partners licensed in other states can admit them as owners in Iowa or Texas and cannot in New Hampshire.
The structuring consequence: a multi-state practice choosing where to organize its PLLC is choosing its ownership pool. Organizing in a state that counts out-of-state licenses lets partners licensed elsewhere hold equity in one company, while the firm still renders services in each state only through people licensed there.
A few states allow unlicensed owners in narrow cases. North Carolina lets anyone own up to 49% of a CPA firm if licensees hold at least 51% of the votes (G.S. 55B-6). Utah allows a member “who is not licensed” to the extent the profession’s licensing act permits (Utah Code § 48-3a-1109). Kentucky’s accountancy rules contemplate unlicensed owners of a CPA firm (201 KAR 1:081). North Dakota has an exception for minority owners who provide a supporting service (N.D.C.C. § 10-31-07.2).
Whose malpractice you still carry
Every state keeps a professional liable for their own malpractice. The difference that matters is the people you supervise, and the states split four ways.
The first group makes you liable for anyone under your direct supervision and control, with no fault required. New York’s version reads “personally and fully liable and accountable” for negligent acts by that person “or by any person under his direct supervision and control” (N.Y. Ltd. Liab. Co. Law § 1205(a)). Connecticut, D.C., Florida, Idaho, Illinois, Michigan, Mississippi, Pennsylvania, Rhode Island and Washington have the same rule. Maine makes a member jointly and severally liable for claims arising from work the member “directly supervised and controlled” (13 M.R.S. § 753(3)). Oregon goes furthest: members carry the liability of professional corporation shareholders, which includes supervised persons and joint liability among Oregon shareholders for the firm’s professional negligence, subject to caps (ORS 63.074(2); ORS 58.185).
The second group requires fault. In Montana and New Hampshire, a member is not liable for others’ conduct unless at fault “in appointing, supervising, or cooperating with them” (Mont. Code Ann. § 35-8-1306; RSA 304-D). Maryland uses “negligent in appointing, supervising, or cooperating” (Md. Code, Corps. & Ass’ns § 4A-301.1). Tennessee requires that the member be “also at fault” (Tenn. Code Ann. § 48-249-1119).
The third group keeps only your own acts. Alabama, Indiana, Kentucky, Louisiana, Nevada, North Carolina, North Dakota and West Virginia preserve liability for acts the professional personally participated in and say nothing more. The fourth group, which includes Arizona, Georgia, Iowa, Minnesota, Oklahoma and Virginia, says the LLC statute “does not alter” the law on professional liability and leaves the answer to that law. The ordinary-LLC states with no professional provision generally fall here too.
In New York and Florida, a physician is personally liable for the malpractice of a nurse practitioner under the physician’s direct supervision and control, without any fault of the physician’s own; in Montana, only if the physician supervised badly.
Take a physician-owned practice where one physician supervises three nurse practitioners, and a nurse practitioner’s error produces a $1,500,000 judgment against a $1,000,000 policy. If the nurse practitioner worked under the physician’s direct supervision and control, then in New York, Florida or Illinois the supervising physician is exposed personally for the $500,000 above the policy because the statute imposes the liability on the supervisor directly, with no showing of fault. In Montana, New Hampshire, Maryland or Tennessee, the plaintiff has to prove the physician was at fault in supervising. In Kentucky or Nevada, the PLLC statute itself imposes no supervisor liability, though other law may.
The structuring consequence: in a direct-supervision state, supervision assignments are personal risk allocation, and the operating agreement should treat them that way. It should require the company to indemnify a member for claims arising from supervised staff, require entity coverage with limits sized to each member’s supervision load, and make the indemnity survive the member’s departure. In a fault-based state, the same money is better spent documenting supervision protocols, because adequate supervision is the defense.
Two states attach a condition to the shield itself. Washington requires a PLLC whose members must be licensed to carry at least $1,000,000 of professional liability insurance or equivalent security, and members can be personally liable for amounts the coverage would have paid if it does not (RCW 25.15.046(3)). West Virginia requires $1,000,000 of coverage or segregated funds at all times, and the person claiming the liability limit bears the burden of proving compliance (W. Va. Code § 31B-13-1305).
In Washington and West Virginia, a professional LLC that lets its malpractice coverage drop below $1,000,000 puts its members’ own assets behind the gap.
What it must be called
Most PLLC states require “PLLC,” “P.L.L.C.” or the full words, and the exceptions are where filings bounce. Kansas forbids it: its form says “PLLC is not allowed,” and the name must match the board’s certificate exactly. Kentucky lists “PLLC” and “PLC” but not “P.L.L.C.” with periods. Nevada requires the surname of at least one current or former member in addition to the designator (NRS 89.040). Virginia, Idaho and Alabama make the professional designator optional, and New York, Minnesota and North Dakota let a PLLC end in plain “LLC.” Louisiana’s dental LLCs must use the licensed names of all participating dentists.
What it costs
In almost every state a professional LLC pays the same formation fee as an ordinary LLC. The extra cost comes from the board and the annual filing. Illinois adds a $50 certificate of registration with the Department of Financial and Professional Regulation and a $40 renewal every three years. New York adds a $50 certificate of publication after six weeks of newspaper notices, on top of the $200 articles fee. Nebraska adds a board certificate that cannot be renewed and must be obtained again each year. Michigan charges a PLLC $50 for its annual report against $25 for an ordinary LLC’s annual statement. North Carolina boards may charge up to $50 to register a PLLC. Pennsylvania’s $700 per member is the largest add-on in the country.
The tables
The first table covers the form, the name and the formation fee. The second covers ownership and liability for supervised staff. Formation fees match the state filing pages on this site; Pennsylvania’s annual registration and the board fees above are separate.
| State | Professional LLC form | Required name ending | Formation fee |
|---|---|---|---|
| Alabama | Ordinary LLC elects professional status | ”Professional” optional | $200 |
| Alaska | No; ordinary LLC may render services | LLC endings only | $250 |
| Arizona | Yes | PLLC, P.L.L.C., PLC or P.L.C. | $50 |
| Arkansas | Yes | PLLC, P.L.L.C., PLC, P.L.C. or the words | $45 online, $50 paper |
| California | None; LLCs may not render licensed services | Not applicable | Not applicable |
| Colorado | No general form | LLC endings; medical LLCs add “professional” | $50 |
| Connecticut | Yes, inside the LLC Act | PLLC or P.L.L.C. (formed since July 1, 2017) | $120 |
| Delaware | No | LLC endings only | $110 |
| District of Columbia | Yes | PLLC or P.L.L.C. | $99 |
| Florida | Yes | PLLC or P.L.L.C. (formed since 2014); “chartered” also allowed | $125 |
| Georgia | No; ordinary LLC | LLC endings only | $110 |
| Hawaii | No | LLC endings only | $50 |
| Idaho | Yes | ”Professional” optional by statute | $100 |
| Illinois | Yes | PLLC or P.L.L.C. | $150, plus $50 state registration |
| Indiana | No; ordinary LLC where the board allows | LLC endings only | $95 online, $100 by mail |
| Iowa | Yes | PLLC, P.L.L.C., PLC or P.L.C. | $50 |
| Kansas | Yes, with professional corporation powers | LLC endings; “PLLC” not allowed | $85 online, $90 paper |
| Kentucky | Yes, inside the LLC Act | PLLC or PLC | $40 |
| Louisiana | Only where a profession’s chapter allows, such as dentistry | LLC endings; dental LLCs use members’ names | $125 |
| Maine | Yes | LLC endings only | $175 |
| Maryland | No | LLC endings only | $100 |
| Massachusetts | Professional certificate under the LLC Act | LLC endings only | $500 |
| Michigan | Yes | PLLC, P.L.L.C., PLC or P.L.C. | $50 |
| Minnesota | Yes, by election | PLLC, P.L.C. or plain LLC | $155 online, $135 by mail |
| Mississippi | Yes, by election | PLLC or P.L.L.C. | $50 |
| Missouri | No | LLC endings only | $50 online, $105 by mail |
| Montana | Yes | PLLC, P.L.L.C. or the words | $35 |
| Nebraska | No; ordinary LLC with a board certificate | LLC endings only | $100, plus certificate fees |
| Nevada | Yes | PLLC, Chartered, Ltd. or others, plus a member’s surname | $425 with initial list and business license |
| New Hampshire | Yes | P.L.L.C. or the words | $100 |
| New Jersey | No | LLC endings only | $100 |
| New Mexico | No | LLC endings only | $50 |
| New York | Yes | PLLC, P.L.L.C. or plain LLC | $200, plus $50 publication certificate |
| North Carolina | Yes | Professional, PLLC or P.L.L.C. | $125, plus board registration |
| North Dakota | Yes | PLLC, PLC or plain LLC | $135 |
| Ohio | No | LLC endings only | $99 |
| Oklahoma | Yes | ”Professional” plus the LLC ending, such as P.L.L.C. | $100 |
| Oregon | No; ordinary LLC | LLC endings only | $100 |
| Pennsylvania | Yes, restricted professional company | Not confirmed, confirm with the Department of State | $125, plus $700 per member each year |
| Rhode Island | No; ordinary LLC | LLC endings only | $150 |
| South Carolina | No | LLC endings only | $110 |
| South Dakota | Health care LLCs only | PLLC or plain LLC | $150 |
| Tennessee | Yes | PLLC, professional LLC or the words | $300 minimum |
| Texas | Yes | PLLC or the words | $300 |
| Utah | Yes, optional | PLLC in state filings | About $59 |
| Vermont | Ordinary LLC under professional corporation rules | PLLC, PLC or “Professional” | $155 |
| Virginia | Yes | PLLC or PLC optional | $100 |
| Washington | Yes | PLLC or P.L.L.C. | $200 online, $180 by mail |
| West Virginia | Yes | PLLC or P.L.L.C. | $100 |
| Wisconsin | No | LLC endings only | $130 online |
| Wyoming | No | LLC endings only | $100 |
| State | Who may own | Liability for supervised staff |
|---|---|---|
| Alabama | Qualified persons as each regulator defines | Own acts only |
| Alaska | Set by each profession; the LLC Act has no rule | Not addressed in the LLC Act |
| Arizona | Set by the licensing authority; services only through licensees | Existing law preserved |
| Arkansas | Set by each profession; medical LLCs register with the Medical Board | Not addressed in the PLLC subchapter |
| California | Not applicable | Not applicable |
| Colorado | Set by each profession; medicine requires licensed, practicing physicians | Not addressed in the LLC Act |
| Connecticut | All members licensed, with three listed multidisciplinary combinations | Direct supervision, no fault needed |
| Delaware | No LLC Act rule; law firms limited to Delaware bar members | Not addressed in the LLC Act |
| District of Columbia | No LLC Act rule; law firms may have working nonlawyer partners | Supervision and control, no fault needed |
| Florida | All members licensed for the same service | Direct supervision, no fault needed |
| Georgia | No LLC Act rule; set by each profession | Existing law preserved |
| Hawaii | No LLC Act rule; law firms limited to lawyers | Not addressed in the LLC Act |
| Idaho | All members licensed for the same service | Direct supervision, no fault needed |
| Illinois | All licensed for listed professions; medicine requires physician managers | Direct supervision, no fault needed |
| Indiana | Set by the licensing authority | Own acts only |
| Iowa | All licensed, in any state | Existing law preserved |
| Kansas | Licensees in the same profession and certain trusts and firms | Not addressed in the LLC Act |
| Kentucky | Set by each board; accountancy allows some unlicensed owners | Own acts only |
| Louisiana | Set by each profession’s chapter; dental LLCs limited to Louisiana dentists | Own acts only |
| Maine | Licensed individuals, in any state, and qualifying firms | Direct supervision, jointly and severally |
| Maryland | No LLC Act rule; set by each profession | Only if negligent in supervising |
| Massachusetts | Set by each board’s eligibility standards | Not addressed in the LLC Act |
| Michigan | All members and managers licensed | Direct supervision, no fault needed |
| Minnesota | Licensed professionals and listed categories | Existing law preserved |
| Mississippi | Licensed, in any state, unless the board authorizes others | Direct supervision, no fault needed |
| Missouri | No LLC Act rule; design firms need a licensed managing agent | Not addressed in the LLC Act |
| Montana | Licensed individuals and qualifying firms | Only if at fault in supervising |
| Nebraska | Members who render services must be licensed | Not addressed in the LLC Act |
| Nevada | Licensed natural persons; design firms two-thirds | Own acts only |
| New Hampshire | Persons authorized in New Hampshire and qualifying firms | Only if at fault in supervising |
| New Jersey | Set by each licensing authority; law firms limited to practicing lawyers | Not addressed in the LLC Act |
| New Mexico | No LLC Act rule; set by each profession | Own acts only |
| New York | All members licensed, with an accounting exception | Direct supervision, no fault needed |
| North Carolina | Licensees, with exceptions such as 49% outside ownership of CPA firms | Own acts only |
| North Dakota | Licensees, with a narrow exception for minority support owners | Own acts only |
| Ohio | No LLC Act rule; set by each profession | Not addressed in the LLC Act |
| Oklahoma | Licensed in the same or a related service; managers too | Existing law preserved |
| Oregon | No LLC Act rule; medical management companies restricted by 2025 law | Direct supervision, plus capped joint liability |
| Pennsylvania | All beneficial owners and managers licensed | Direct supervision, no fault needed |
| Rhode Island | No LLC Act rule; law firms limited to lawyers | Direct supervision, no fault needed |
| South Carolina | No LLC Act rule; set by each profession | Not addressed in the LLC Act |
| South Dakota | At least one licensee for each health profession practiced | Existing law preserved |
| Tennessee | Licensed, in any state, unless the board authorizes others | Only if at fault |
| Texas | Licensed in Texas or another jurisdiction | Not addressed; the firm is liable |
| Utah | Unlicensed members allowed where the licensing act permits | Not addressed in the PLLC part |
| Vermont | Licensed individuals; at least half of managers licensed | Not addressed; own acts as a sole practitioner |
| Virginia | Licensed in the same service; design firms two-thirds | Existing law preserved |
| Washington | Licensed members and qualifying firms | Direct supervision, plus a $1,000,000 insurance condition |
| West Virginia | All licensed for the same or compatible services | Own acts, plus a $1,000,000 insurance condition |
| Wisconsin | No LLC Act rule; set by each profession | Not addressed in the LLC Act |
| Wyoming | No LLC Act rule; law firms limited to lawyers | Not addressed in the LLC Act |
“Not addressed” means the LLC statute is silent, not that the professional is protected; general tort law and the profession’s own rules still apply. Board rules can be stricter than any entry here, and lawyers in every state follow their own court’s rules.
The bottom line
California does not allow professional LLCs, and 17 other jurisdictions have no professional LLC statute and leave ownership to each licensing board.
Pennsylvania charges a professional LLC $700 a year for each member who lives in Pennsylvania.
Iowa, Texas, Maine, Mississippi and Tennessee count out-of-state licenses for ownership, and New Hampshire does not.
About a dozen states make a member personally liable for supervised staff with no fault required; Montana, New Hampshire, Maryland and Tennessee require fault.
Washington and West Virginia tie the liability shield to at least $1,000,000 of malpractice coverage.
Kansas forbids “PLLC” in the name, and Nevada requires a member’s surname.
What this page does not cover
What a PLLC protects and why most California professionals use a corporation are on licensed professions. Ownership limits specific to each profession are on law firms, accounting firms and engineering and architecture firms, and for medicine and dentistry on healthcare licensing. The four ownership models across licensed businesses are on who is allowed to own a licensed business.
Last verified October 2026.