Yes, IF 1) you are a state-licensed professional that meets the eligibility requirements, 2) all of your members and managers of your PLLC are also state licensed professionals, and 3) you file the correct PLLC formation documents with the Texas Secretary of State.
A professional limited liability company may be formed in Texas by any person or group of people that wish to offer professional services through the company. Texas law specifically provides for services from architects, attorneys, certified public accountants, dentists, physicians, public accountants, or veterinarians.
A PLLC is an LLC for those companies that provide professional services such as doctors, CPAs, or lawyers. Essentially, along with the required filing paperwork for an LLC, any professional or owner of the entity must also submit their license to practice in the state of Texas and be in good standing with the licenses’ issuing organization. Additionally, the ownerships interest in the professional entity may be transferred only to an owner of the entity, the entity itself or an “authorized person” such as another professional.
Structurally, how forming a PLLC is no different than an LLC—The PLLC is governed by members or managers that follow the Operating Agreement and statutes governing LLCs.
However, for liability purposes, the entity itself is jointly and severally liable for an error, omission, negligent or incompetent act, or malfeasance committed by a person who is an owner or agent of the entity and happens while providing a professional service for the entity. While this is not necessarily different than how it may happen in a regular LLC, the Texas Business Organization Code specifically lays out this instance for Texas PLLCs.
But, what is the advantage of a PLLC in Texas?
The big advantage of a PLLC is that other professionals in the PLLC are not liable for the malpractice of another. This is different than say, a partnership, where each partner is liable. The separation of the entity and the individual is a big attraction for professionals looking to incorporate with other professionals.
San Antonio Business Attorney Nathaniel Gilbert helps professionals decide if PLLC Formation is right for them, and advises on entity structures that can benefit both LLCs and PLLCs. If you have questions about entity choice and structure in Texas, reach out to Nate here for a Free Consultation, or Click Here to learn more about PLLC Formation and PLLC Requirements in Texas.