PLLC vs LLC: Choose the Right One for Your Business

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pllc vs llc

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Are you trying to draw a comparison of PLLC vs LLC to choose the right one? You’ll see that for most readers, the PLLC is not applicable since it’s reserved for licensed professionals. We’ll give examples of the type of licensed professionals to help you decide if it’s applicable to your business. 

Definition of PLLC and LLC

Are you trying to figure out what is a PLLC vs LLC fair comparison? Before we can compare the two types of business structures, we need to understand more about each type. Here are the definitions of both:

LLC: an LLC (Limited Liability Company) is a business structure that aims to protect the parties involved from personal liability. Other advantages include better financial business management, bank loans, and more. 

PLLC: a PLLC (Professional Limited Liability Company) is identical to an LLC, but there are limitations on who can apply. PLLCs are limited to licensed professionals such as lawyers, architects, dentists, accountants, etc. Therefore, you no longer have to ask what does a PLLC mean and we can begin to compare the two business structures. 

LLC vs Professional LLC: Making the Right Choice

Based on the definition above, this choice is only for licensed professionals and in a limited number of states. You’ll also need to consider the states in which you want to open a business. Here are the states where a PLLC is allowed:

Arkansas, Arizona, Colorado, District of Columbia, Florida, Idaho, Iowa,  Kentucky, Maine, Massachusetts, Michigan, Minnesota, Mississippi, Montana, Nevada, New Hampshire, New York, North Carolina, North Dakota, Oklahoma, Pennsylvania, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington and West Virginia.

If your place of business isn’t among one of the states above, then you cannot choose a PLLC, and you’ll need to select an LLC instead. 

One of the biggest benefits of choosing an LLC is that you will receive liability protection. Let’s say that you sell gym equipment and someone receives an injury because of a manufacturing fault. The customer may bring legal action against your business. When you have an LLC, the legal action is against that entity and not you personally. 

However, PLLCs focus on specialists performing a service. Therefore, with a PLLC, the specialist can face malpractice legal action. This is another major difference with an LLC business structure.  

pllc vs llc

PLLC vs LLC Frequently Asked Questions

Is there a difference for Articles of Organization vs Articles of Organization professional LLC?

Yes, there is a difference between the Articles of Organization of a PLLC vs LLC. The paperwork is slightly different since, in the former, you need to share the details of your license for the profession. 

However, the Articles of Organization differ in each state, and the specifics vary depending on where you are submitting them. There’s a lot of overlap when considering the difference between LLC and professional LLC Articles of Organization. This means the advice and help online should help you fill them out for most states. 

What Are The Advantages of Getting a PLLC or LLC?

The advantages of a PLLC or LLC are mostly the same and can make a big difference for your business. Here are some of the top ones you should consider when setting up a business:

  • Bank loans: You’ll have a higher chance of receiving the bank loan you need to take your business to the next level. When granting a loan, banks determine the likelihood of getting their money bank. Businesses with an LLC are viewed in a more positive light regarding this consideration. 
  • Liability Protection: With a PLLC or LLC, you have a wide range of liability protection. This business entity will face the brunt of the legal action. Note that it’s possible for licensed professionals with a PLLC to face malpractice lawsuits. 
  • More authority: You’ll have more authority and command additional respect in your industry. That’s because suppliers and customers tend to research companies that they buy from or do business with. 
  • Money management: You’ll have an easier time managing funds with an LLC. That’s because all transactions can be funneled through the LLC, which makes things easier. Also, this promotes transparency since business partners can see what funds are coming in and out of the company.
  • Taxes: You can potentially pay lower taxes with an LLC or PLLC. However, this depends on the specifics of your business, and you should consult a tax accountant. 

Is it expensive to get a PLLC or LLC?

The cost of getting an LLC or PLLC is relatively inexpensive, but it depends on the state where you are making the application. However, you can pay around $100 for the filling, and you’ll also need to invest in registered agent services

Overall, the value for money in getting your business incorporated is a good value proposition. Therefore, you can expect your business to get a good return on this investment. 

How fast can you register an LLC or PLLC?

The time it takes to register an LLC or PLLC is around 7-10 business days. However, this depends on the state where you are registering your business and their workload. Also, there will be a delay if you fail to correctly enter the required information. 

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Should You Register an LLC or PLLC?

To conclude, registering an LLC or PLLC is a great idea for most businesses. The numerous advantages mean that it’s one of the best investments you can make. However, you need to understand the difference between LLC and a professional LLC to make the right choice. 

Generally speaking, if you are not a licensed professional, then the LLC is the way to go. Also, PLLCs are not available to anyone in some states. If that’s your situation, then an LLC is the right solution. 

Are you looking for an easy way to register an LLC? Then take advantage of the business registration services at Business Anywhere. We will help you along the process and charge a competitive rate. 

About Author

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Rick Mak

Rick Mak is a global entrepreneur and business strategist with over 30 years of hands-on experience in international business, finance, and company formation. Since 2001, he has helped register tens of thousands of LLCs and corporations across all 50 U.S. states for founders, digital nomads, and remote entrepreneurs. He holds degrees in International Business, Finance, and Economics, and master’s degrees in both Entrepreneurship and International Law. Rick has personally started, bought, or sold over a dozen companies and has spoken at hundreds of conferences worldwide on topics including offshore structuring, tax optimization, and asset protection. Rick’s work and insights have been featured in major media outlets such as Business Insider, Yahoo Finance, Street Insider, and Mirror Review.
“I’ve used many LLC formation services before, but this one is the best I’ve ever used—super simple and fast!” “Excellent service, quick turnaround, very professional—exactly what I needed as a non-US resident.”
You can read more feedback from thousands of satisfied entrepreneurs on the Business Anywhere testimonials page. As a contributor to Business Anywhere, Rick shares actionable guidance drawn from decades of cross-border business experience—helping entrepreneurs launch and scale legally, tax-efficiently, and with confidence. To learn more about how we ensure accuracy, transparency, and quality in our content, read our editorial guidelines.

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