Yes, you may convert your Texas LLC to a Texas PLLC if you qualify for a Professional Limited Liability Company.
1. Determine if you qualify for a Professional Limited Liability Company—Do you meet the Texas statute requirements for being a PLLC? You must offer a service that requires a state-issued license to do so, AND there must be no members of the LLC that are not qualified to render that service. The LLC may employ individuals that do not possess the license, such as administrators and support staff, but they cannot be members of the LLC or you may not convert to a PLLC.
2. Create your company resolution to effect the change. As an LLC, you must follow the guidelines set out in your company’s Operating Agreement on making a change in the name of the LLC. Once you have determined the steps necessary to create the change, you may create the Corporate Resolution to effectuate the name change and file with the other company documents.
3. File the required paperwork with the Secretary of State of Texas. Changing the business from an LLC to a PLLC is, for all intents and purposes with the Secretary of State, merely a change in the name of the business. To register a change of name with the Secretary of State, you must file Form 424- Certificate of Amendment, stating the change in name of the LLC to a PLLC. You will also need to fill in the “Purpose” section of the Certificate of Amendment and provide the State with the Professional Service that you will now be providing.
4. Make the necessary changes in your Operating Agreement. Now that the company has become a PLLC, you will need to amend your Operating Agreement to reflect this change. Depending on the type of service you are offering and the number of members of the PLLC, this may mean different amendments to different parts of your Operating Agreement.
Converting to a PLLC in Texas is a relatively straightforward process, but you may save some time and energy by working with an attorney who understands the complexities and nuances of the requirements. San Antonio LLC Attorney Nathaniel Gilbert works with business owners in a variety of ways and can help manage your LLC or PLLC in an efficient manner. If you would like to learn more about LLCs and PLLCs in Texas, Click Here. To contact Nate directly, Click Here.