Can you convert an LLC to a PLLC in Texas?

Asked by: Mandy Quigley  |  Last update: August 23, 2022
Score: 4.6/5 (74 votes)

Yes, paperwork can be filed with the Texas Secretary of State to convert a Texas LLC to a PLLC. You'll likely need to amend your company agreement as well. Shoot us an email if you think you may need to convert an LLC to a PLLC.

Can an LLC own a PLLC in Texas?

A PLLC is an excellent option for licensed professionals not permitted to form an LLC under Texas law.

Does Texas have a pllc?

As a licensed professional in Texas you can structure your business as a Texas professional limited liability company (PLLC). This will give you protection from several important types of liability.

What is the advantage of a pllc over an LLC?

PLLC Owner Liability Protection

In general, PLLC members have the same legal protections as members of an LLC. While the PLLC protects members from each other's malpractice suits, it does not protect individual members from their own malpractice suits.

How much is a PLLC in Texas?

Cost to Form a PLLC

The filing fee for the Certificate of Formation in Texas is $300. Expedited service is available for an additional $25 fee.

LLC versus PLLC

20 related questions found

How is a pllc taxed in Texas?

Texas, however, imposes a state franchise tax on most LLCs. The tax is payable to the Texas Comptroller of Public Accounts (CPA). In general terms, the franchise tax is based on an LLC's "net surplus" (the net assets of the LLC minus its members' contributions).

What is the owner of a pllc called?

The owners of a PLLC are called members, and they have an operating agreement that governs how they work together and divide profits and losses. Many professionals start a PLLC because they want to separate their individual liability from their liability as a member of the business or practice.

Does the IRS recognize PLLC?

Tax Entity Classification

The Internal Revenue Service doesn't recognize LLC and PLLC structures for tax purposes. Instead, your business must file as a corporation, S corporation or partnership for multi-member LLCs (MMLLC), or corporation or sole proprietorship for single-member LLCs (SMLLC).

What are the benefits of a PLLC?

  • Members of a PLLC aren't personally liable for the malpractice of any other member. ...
  • PLLC members are not personally liable for business debts and lawsuits, such as unpaid office rent.
  • The PLLC can choose to be taxed as a pass-through entity or as a corporation.

Do I need to 1099 A PLLC?

Companies usually aren't required to issue 1099s to corporate entities such as PLLCs that provide professional services to them, just as they're not required to file 1099-MISC forms for corporations. In most circumstances, 1099-MISC are filed only when a company pays an individual or a partnership.

Is a pllc a partnership in Texas?

The Texas Business Code allows groups of professionals to operate their professional practices as a limited liability partnership (LLP) or a professional limited liability company (PLLC). An LLP is a general partnership that registers with the state and pays an annual fee.

Which is better PLLC or PA?

PA's are subject to more rules and regulations, making PLLCs the more flexible option of the two. If a medical professional will be working independently, a PLLC may be a better choice, if they can avoid the self-employment tax by filing for Subchapter S Election.

What's the difference between PC and pllc?

The difference between a PC and a PLLC is ultimately the same as the difference between a regular corporation and a regular LLC. One major difference is how these entities are taxed. The PLLC has a few options for taxation, and all of them are likely to save ownership money compared to a PC.

What is the difference between an LLC and a pllc?

A PLLC is a kind of LLC specifically for licensed professionals. The difference between an LLC and a PLLC is mainly that only licensed professionals such as architects, doctors, lawyers and accountants can form PLLCs. Check with your state to determine if they permit licensed professionals to form a standard LLC.

Does an LLC protect personal assets as a therapist?

Yes. An LLC will give you personal liability protection against potential business risks as well as give your counseling center more tax options and credibility. It is relatively inexpensive and simple to form and maintain an LLC. Learn more about counseling center LLC benefits.

Can I be my own registered agent in Texas?

Can I Be My Own Registered Agent In Texas? Yes, any owner or employee of a business can be its registered agent in Texas as long as they are over the age of 18, and have a street address in Texas.

What should I name my PLLC?

Typically, your business's name must end with the words “Limited Liability Company,” company” or “Limited.” Or you can use abbreviations like “LLC,” “L.L.C.,” or “Ltd.” Usually, you can even opt to abbreviate the words “Limited” and “Company” as “Ltd.” and “Co.” (Most people just stick with “LLC”.)

What is a Pllp?

A professional limited liability partnership, as the name implies, is a limited liability partnership made up exclusively of licensed professionals.

What does PLLC stand for in business?

A professional limited liability company ("PLLC") is a business entity designed for licensed professionals, such as lawyers, doctors, architects, engineers, accountants, and chiropractors.

Can I file my LLC and personal taxes separate?

Can I File My Personal and Business Taxes Separately? You can only file your personal and business taxes separately if your company it is a corporation, according to the IRS. A corporation is a business that's seen as an entity separate from its owner(s) that pays its own tax.

Are husband and wife considered single-member LLC?

Overview. If your LLC has one owner, you're a single member limited liability company (SMLLC). If you are married, you and your spouse are considered one owner and can elect to be treated as an SMLLC.

What is the best tax classification for an LLC?

As a simple and effective tax structure, many multi-member LLCs will find the partnership tax status to be an ideal choice. However, if your company plans to seek funding from outside investors or other types of passive owners, you may want to consider being taxed as a corporation.

What do you call yourself when you own an LLC?

If you own all or part of an LLC, you are known as a “member.” LLCs can have one member or many members. In some LLCs, the business is operated, or “managed” by its members. In other LLCs, there are at least some members who are not actively involved in running the business. Those LLCs are run by managers.

Can a pllc be sued?

If you form a PLLC, then, like an LLC, the members will be free from personal liability in many circumstances. If a customer attempts to sue, they would typically sue the LLC and not its members.

Is the owner of an LLC the CEO?

A common title for LLC owners with an overarching executive role is “CEO” or “Chief Executive Officer,” which can signify that the owner is the top decision-maker. Other “C-Level” titles that a member might hold include: COO: A Chief Operating Officer typically handles the day-to-day operations of a company.