How to Start a PLLC in Texas: Step-by-Step
Texas makes PLLC formation refreshingly straightforward, as long as you meet the licensing requirements. The process closely mirrors forming a regular Texas LLC, with a few professional-specific steps layered on top.
The Texas Business Organizations Code governs professional LLCs, and the Secretary of State handles the filing. Expect a $300 filing fee, a professional license verification, and a bit more paperwork than a standard LLC. Here is the full process, start to finish.
Step 1: Confirm Everyone Is Licensed
Texas is strict on this point. Every member and manager of a Texas PLLC must be licensed to perform the professional service the company will offer. There are no exceptions for silent partners or investor members.
This does not mean every employee must be licensed. Your PLLC can hire unlicensed staff, from receptionists to billing specialists. But anyone with an ownership stake needs the license in hand before you file.
Texas also limits the PLLC to a single type of professional service. A group of dentists cannot run a side accounting practice through the same PLLC. If you are unsure whether your license qualifies, check the Texas Secretary of State formation FAQs or your licensing board first.
Step 2: Choose and Check Your Name
Your PLLC name must be distinguishable from every other business already registered with the Texas Secretary of State. Run a name search through SOSDirect, the state’s online filing system, before you get attached to a name.
Texas requires the name to signal its professional status. Most PLLCs use “PLLC” or “Professional Limited Liability Company” in the name. Some professions have additional naming rules from their licensing boards, so verify those too.
You can reserve a name for 120 days for a $40 fee if you are not ready to file. For most filers, though, it is simpler to check availability and file in the same session.
Step 3: Appoint a Registered Agent
Every Texas PLLC needs a registered agent with a physical Texas address. The agent receives lawsuits, tax notices, and state correspondence on the company’s behalf and must be available during normal business hours.
You can serve as your own agent if you have a Texas street address and keep regular hours, but many professionals prefer a commercial service for privacy and reliability. If you want the full breakdown, read our guide on what a PLLC is alongside what a registered agent does.
Step 4: File the Certificate of Formation
This is the step that legally creates your PLLC. Texas uses Form 205, the Certificate of Formation for a Limited Liability Company, and you will indicate the professional purpose on it. File online through SOSDirect for the fastest processing, or mail the form to Austin.
The filing fee is $300, the same as a regular Texas LLC. You will provide the company name, registered agent details, management structure, organizer information, and a statement of the professional service the PLLC will render. Standard processing takes a few business days; expedited options cost extra.
For the current forms and fee schedule, the Secretary of State’s business forms page is the authoritative source. Wondering how the $300 compares to other states? Our Texas LLC cost breakdown puts it in context.
Step 5: Draft Your Operating Agreement
Texas does not require PLLCs to file an operating agreement with the state, but operating without one is a mistake. The agreement sets ownership percentages, voting rules, profit splits, and what happens when a member leaves, retires, or loses a license.
For a PLLC, include license-related provisions a regular LLC would never need. Spell out what happens if a member’s license lapses or is revoked, since Texas law requires all members to stay licensed. Address buyout mechanics for a departing professional and restrictions on transferring membership interests to unlicensed people.
The single most important clause in a Texas PLLC operating agreement is the license contingency: what happens to a member’s ownership the day their license is no longer valid.
Step 6: Get Your EIN from the IRS
Apply for a federal Employer Identification Number through the IRS website. It is free, takes about 15 minutes online, and you will need it to open a business bank account, hire employees, and file taxes. Our EIN walkthrough covers the application screen by screen.
Even a single-member PLLC with no employees should get an EIN. Banks expect it, and it keeps your Social Security number off business paperwork.
Step 7: Handle Texas Taxes and Ongoing Compliance
Texas has no personal income tax and no annual report for LLCs, which surprises newcomers. But Texas does impose a franchise tax, often called the margin tax, on most business entities including PLLCs.
Many small PLLCs owe nothing because of the no-tax-due threshold, which has been well over $2 million in revenue in recent years. You may still need to file a no-tax-due report, so calendar the May 15 deadline and confirm your status each year.
Beyond state taxes, keep your professional licenses current, maintain malpractice insurance, and keep business and personal finances strictly separated. The liability shield only works if you treat the PLLC like a real company.
Texas PLLC vs Regular Texas LLC: Practical Differences
Filing fees are identical at $300, and both entities give you limited liability and pass-through taxation. The day-to-day differences show up in three places. First, membership: a regular LLC can admit anyone, including investors and family members, while your PLLC can only admit licensed professionals in your field.
Second, purpose: a regular LLC can pursue any lawful business, while your PLLC is limited to the single professional service stated in its certificate of formation. Third, formation friction: the regular LLC files and is done, while the PLLC may need licensing board sign-off and a more careful operating agreement.
For a licensed professional practicing in Texas, these are not optional upgrades. They are the conditions of using the entity at all. The upside is meaningful: the partner shield against another member’s malpractice, which a general partnership cannot offer, and a structure that licensing boards, insurers, and hospitals instantly recognize. Texas also has no personal income tax and no LLC annual report, which keeps the long-term compliance bill lower than in many states.
Watch: Forming a PLLC in Texas
This video from a Texas business law firm walks through PLLC formation requirements specific to Texas:
How Long Does It Take?
Online filings through SOSDirect are typically processed within a few business days. Mail filings take longer, often two to three weeks. Licensing board approvals, if your profession requires pre-clearance, can add weeks, so start that conversation early.
Total first-year cost for a DIY filing runs about $300 plus any licensing board fees. That is before registered agent service, which runs $100 to $300 per year if you hire one.
Frequently Asked Questions
How much does it cost to start a PLLC in Texas?
The state filing fee is $300, the same as a regular Texas LLC. Add licensing board approval fees if your profession requires them, plus optional costs like registered agent service and expedited processing.
Can a non-licensed person be a member of a Texas PLLC?
No. Texas requires every member and manager to be licensed to perform the professional service the PLLC offers. Unlicensed people can work for the PLLC as employees but cannot hold ownership.
Does a Texas PLLC need an operating agreement?
Not by law, but you should absolutely have one. Include provisions covering license loss, member departures, and buyouts, since Texas membership rules are stricter than a regular LLC’s.
How long does Texas take to approve a PLLC filing?
Online filings are usually processed within a few business days. Mail filings take two to three weeks. Add extra time if your licensing board must approve the formation first.
Does a Texas PLLC pay the franchise tax?
Most PLLCs must at least file, but many owe nothing thanks to the no-tax-due revenue threshold. Confirm your filing obligation each year ahead of the May 15 deadline.
Can I convert my Texas LLC into a PLLC?
Texas allows conversions between entity types by filing the appropriate conversion documents and paying the fee. Many professionals find it cleaner to form the PLLC fresh, but conversion is available if you already have an LLC.
