Texas PLLC Lawyer
Licensed professionals in Texas face a specific requirement when they are forming a business entity. Physicians, attorneys, therapists, accountants, engineers, and other licensed practitioners generally cannot form a standard LLC. Texas law requires these professionals to form a Professional Limited Liability Company (PLLC) instead. A Texas PLLC lawyer helps professionals navigate the licensing requirements, ownership restrictions, and formation documents that make this process different from standard business formation
I am Nate Gilbert, a Texas PLLC formation attorney based in San Antonio. I work directly with licensed professionals across Texas, including Houston, Dallas, Austin, Fort Worth, and Amarillo, to form PLLCs that meet both state filing requirements and the specific rules of each profession’s licensing board. When you contact my office, you speak with me personally. There is no intake staff or associate handling your matter.
Why Licensed Professionals Work With Nate Gilbert
Professional entity formation involves more documentation and more regulatory requirements than a standard LLC. The consequences of filing incorrectly may include licensing complications, improper liability exposure, or having to restructure the entity later.
I have handled business formation matters as a solo attorney since 2015. Every PLLC formation I take on receives my direct attention from the first conversation through the final filed documents. Clients consistently describe the process as clear, responsive, and thorough.
My PLLC formation services include:
- Filing the correct Certificate of Formation for a PLLC with the Texas Secretary of State
- Drafting a custom Operating Agreement with PLLC-specific provisions, along with buy-sell agreements and corporate governance documents
- Defining the PLLC’s stated professional purpose accurately in formation documents
- Advising on membership restrictions and regulations specific to professional limited liability companies
Each formation is handled on a flat-fee basis. The total cost is set before work begins. There are no hourly charges, no surprise invoices, and no additional fees for phone calls or questions during the process.
If you are a licensed professional preparing to form a PLLC in Texas, call or text me directly at (726) 259-4616 for a free 15-minute consultation.
Who Must Form a PLLC in Texas?
Texas law requires certain licensed professionals to form professional entities rather than standard LLCs. Chapter 301 of the Texas Business Organizations Code governs how professional entities are formed and who must use them.
Professions That Require a PLLC
The requirement applies to professions where the state issues a license to practice. Common examples include:
- Physicians, dentists, and veterinarians
- Attorneys
- Therapists, counselors, and psychologists
- Certified Public Accountants
- Architects and engineers
- Chiropractors
If a profession requires a state-issued license to practice, a standard LLC is generally not an option. The entity must be structured as a PLLC or Professional Corporation. When I work with licensed professionals on formation, confirming the licensing requirement is always the first step.
What Happens If a Professional Forms the Wrong Entity?
Some professionals file a standard LLC without realizing their profession requires a PLLC. That mistake may create problems with the licensing board, affect liability protection, or require a conversion later. Converting from an LLC to a PLLC involves amending the Certificate of Formation, updating the Operating Agreement, and verifying that all owners hold active licenses. Forming the correct entity the first time avoids those complications.
How PLLC Formation Differs From Standard LLC Formation
Licensed professionals often assume that forming a PLLC follows the same process as forming a standard LLC. While the filing itself may look similar on the surface, professional entity formation includes additional requirements tied to licensing, ownership eligibility, and regulatory oversight. These requirements exist because the state regulates professional services differently than standard commercial activities.
A PLLC follows many of the same filing steps as a standard LLC, but several key differences affect how the entity is created and who may own it.
Ownership Restrictions
In a standard LLC, any person or entity may be a member. A Texas PLLC restricts ownership to individuals who hold an active license in the same profession. A medical practice PLLC, for example, may only have licensed physicians as members. This restriction applies at formation and continues for the life of the entity.
Professional Purpose Requirements
The Certificate of Formation for a PLLC must state the specific professional service the entity provides. A standard LLC may list a broad business purpose. A PLLC’s purpose must be limited to the licensed professional service. I draft each Certificate of Formation with the correct professional purpose language so it meets the Secretary of State’s filing requirements.
Licensing Board Coordination
Some Texas licensing boards require notification or approval when a professional forms a PLLC. The requirements vary by profession.
Licensed professionals often assume that forming a PLLC follows the same process as forming a standard LLC. While the filing itself may look similar on the surface, professional entity formation includes additional requirements tied to licensing, ownership eligibility, and regulatory oversight. These requirements exist because the state regulates professional services differently than standard commercial activities.
A PLLC follows many of the same filing steps as a standard LLC, but several key differences affect how the entity is created and who may own it.
Ownership Restrictions
In a standard LLC, any person or entity may be a member. A Texas PLLC restricts ownership to individuals who hold an active license in the same profession. A medical practice PLLC, for example, may only have licensed physicians as members. This restriction applies at formation and continues for the life of the entity.
Professional Purpose Requirements
The Certificate of Formation for a PLLC must state the specific professional service the entity provides. A standard LLC may list a broad business purpose. A PLLC’s purpose must be limited to the licensed professional service. I draft each Certificate of Formation with the correct professional purpose language so it meets the Secretary of State’s filing requirements.
Licensing Board Coordination
Some Texas licensing boards require notification or approval when a professional forms a PLLC. The requirements vary by profession.
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PLLC Formation Comparison
Working With Attorney Nate Gilbert
Direct communication with a single, experienced attorney — from start to finish
Flat-fee pricing established up front — no surprise billing
One-on-one attorney access throughout your engagement
Personalized service — we never take on more clients than we can serve effectively
PLLC vs. LLC in texas
If you’re forming a professional entity, you may wonder — what’s the real difference between a PLLC and an LLC? Is one more costly?
Both structures protect members and managers from company debts and obligations. However, PLLCs go a step further by shielding individual practitioners from liability for the professional negligence of other members. While the PLLC itself can bear responsibility, the individual members remain protected. Learn more about PLLC vs. LLC differences
PLLC Formation Pricing
$1,200
Custom-drafted Operating Agreement tailored to your professional practice
Preparation and filing of all Secretary of State formation documents, including Certificate of Formation and any trade names or DBAs
Attorney memorandum outlining PLLC liability and compliance in Texas
Attorney meeting to review governance documents, explain management procedures, and provide long-term guidance — one of the most valuable parts of the service
Complete Corporate Governance Documents for your PLLC
Note: The $300 state filing fee is not included.
VIRTUAL BUSINESS FORMATION AND PLANNING SERVICES FOR HOUSTON BUSINESSES
Firm Office: San Antonio, TX
How We Serve Houston Businesses: Virtual appointments from our San Antonio Office, Convenient Online Document Sharing, and Phone Call Availability
Protect and strengthen your company with educated and experienced business formation solutions. If you need reliable LLC formation assistance in Houston, such as corporate or Series LLC formation, Attorney Nathaniel Gilbert offers transparent guidance and flat-fee legal services for business owners at every stage. Nate serves entrepreneurs and small businesses across Texas, including Houston, Dallas, Austin, Fort Worth, and other Texas cities.
Book Your Free 15-Minute Consultation
If you’re a licensed professional launching your own business, make sure your legal structure is the right one. Contact Nathaniel Gilbert, a Houston PLLC formation attorney, to ensure your company is compliant and fully protected from the start. Nathaniel offers virtual services for Houston businesses.
Made setting up my LLC super easy and streamlined.
Made setting up my LLC super easy and streamlined while taking the time to explain all the details. Would recommend reaching out to Nathaniel if in need of setting up an LLC
Nathan Liebsch
Nate made it simple and easy while giving us the security we needed.
Nate made it simple and easy while giving us the security we needed to make sure we were doing everything properly. I would definitely recommend using Nate to anyone that is wanting to know the best path in filing for a new company.
Charles Schlecht
Nate was extremely easy to work with
Nate was extremely easy to work with and great at communicating throughout the entire process. I look forward to working with him again in future deals.
Joshua McNeal
A very positive, stress-free experience
I had a very positive, stress-free experience working with Nate on my PLLC formation. He made what could have been a complicated process feel straightforward, efficient, and easy to navigate. His advice was timely, well-considered, and consistently professional. I would absolutely recommend his firm to anyone seeking help with business formation!
Jillian Vogel
Great overall experience
Great overall experience. Very knowledgeable and efficient PLLC formation. The flat rate is nice. He was very responsive and helpful. Highly recommended to anyone looking to start a business/PLLC.
Angela Carollo
How a Texas PLLC Lawyer Helps Structure a Professional Practice
Many of the PLLC formations I handle involve two or more licensed professionals starting or restructuring a practice together. Multi-partner PLLCs require more detailed formation documents than a single-member entity.
Operating Agreements for Professional Partnerships
The Operating Agreement in a multi-partner PLLC defines how the practice runs on a daily basis and what happens when circumstances change. Key provisions I address during drafting include:
- Ownership percentages and capital contributions for each partner
- Profit distribution structure and timing
- Management authority and decision-making procedures
- Partner exit terms, including voluntary departure and involuntary removal
- Buy-sell provisions that govern what happens if a partner leaves, retires, or loses their license
Without these provisions in writing, Texas default rules under the Business Organizations Code govern the practice. Those default rules rarely reflect the actual intentions of the partners.
I draft every Operating Agreement around the specific arrangement the partners have agreed to and include time and practice-tested clauses that serve as the foundation for a successful practice.
When a Partner Loses Their License
A unique challenge for PLLCs is what happens when a member’s professional license is suspended or revoked. Because Texas law requires all PLLC owners to hold active licenses, a member who loses their license may no longer legally remain an owner. The Operating Agreement needs to address this scenario clearly, including the timeline for separation, the valuation method for the departing member’s interest, and the procedure for transferring ownership.
Converting an Existing LLC to a Texas PLLC
Some professionals discover after formation that they filed the wrong entity type. Others start as a solo practitioner with a standard LLC and later need to restructure as a PLLC when they bring on a licensed partner or when their licensing board flags the entity type.
What the Conversion Process Involves
Converting an LLC to a PLLC requires amending the Certificate of Formation on file with the Texas Secretary of State. The amendment must change the entity designation to a professional entity and state the specific professional service provided. The Operating Agreement also needs to be updated or replaced to include PLLC-specific provisions, ownership restrictions, and partner protection terms.
Preserving Business Continuity
A properly handled conversion preserves the original entity’s EIN, contracts, and business relationships. The goal is to restructure the entity without disrupting the practice’s operations. I handle conversions so that the transition is documented correctly and the practice continues without interruption. Timing the conversion before adding a new partner or expanding services simplifies the process.
Professionals who realize they formed the wrong entity often contact me to review their current structure and determine whether a conversion is the right next step.act.
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frequently asked questions
If you’re providing regulated professional services, Texas law may require a PLLC. It also protects you from liability for other members’ professional misconduct.
No. Members must share the same type of professional license. Certain healthcare professionals may form limited Joint Practices — consult your attorney for specifics.
Yes. Administrative or support employees can work for a PLLC, but they cannot be owners or members.
All attorney-prepared documents are typically delivered next business day, though state approval times may vary depending on the Secretary of State’s processing schedule.
Take the Right Step for Your Professional Practice
Forming a PLLC is a decision that affects liability protection, partner relationships, and how the practice operates for years to come. Licensed professionals who take the time to structure the entity correctly at formation avoid the cost and disruption of fixing problems later.
I take the time to understand each professional’s practice, their partnership arrangement, and their goals before drafting any documents. Every formation is handled personally, with direct communication from start to finish and transparent flat-fee pricing.
The Law Office of Nathaniel Gilbert, PLLC serves licensed professionals across all of Texas. Call or text me directly at (726) 259-4616 for a free 15-minute consultation. I answer every call myself.