PLLC vs. LLC for Therapists in Texas: Which One Do You Need?
By the Open My Practice team · Updated November 8, 2026 · 5 min read
When you search for how to start a business in Texas, almost every result tells you to form an LLC. For licensed therapists, the answer is usually a little different: a professional limited liability company, or PLLC. Here's what that means and why it matters.
What a PLLC is
A PLLC is a type of limited liability company formed specifically to provide a professional service, such as counseling, psychology, social work, or marriage and family therapy. It's created by filing a Certificate of Formation for a Professional Limited Liability Company (Form 206) with the Texas Secretary of State. The state filing fee is $300.
Texas law treats a PLLC differently from an ordinary LLC in a few important ways:
- Only licensed professionals who provide that professional service can own and manage it.
- The name must include "Professional Limited Liability Company," "PLLC," or "P.L.L.C."
- It must state the professional service it provides.
- The company can't serve as its own registered agent; you need a registered agent with a Texas address.
What a PLLC does and doesn't protect
A PLLC separates your business from your personal finances. It can protect your personal assets from the practice's business debts and from the professional acts of other owners. It does not protect you from liability for your own clinical work. That protection comes from professional liability insurance.
Your practice name
Your legal entity name might be "Jane Doe Counseling, PLLC," while clients know you as "North Dallas Family Counseling." Doing business under a name other than the legal name requires an assumed name certificate (Form 503) filed with the Secretary of State. The filing fee is $25, and the certificate lasts up to 10 years before it must be refiled.
The yearly filing most new owners forget
Every Texas PLLC reports to the Texas Comptroller each year by May 15. For the 2026 report, entities with annualized total revenue of $2.65 million or less owe no franchise tax, but they still must file a Public Information Report. A late report carries a $50 penalty even when no tax is due, and ignoring the requirement long enough can lead the state to forfeit the entity's right to do business.
How we handle this for you
- Prepares your Form 206 with the correct professional purpose and naming
- Provides a registered agent with a Texas address
- Files your assumed name certificate if your practice name differs from your legal name
- Reminds you about your May 15 Comptroller report every year
Frequently asked questions
Can a therapist in Texas form a regular LLC instead of a PLLC?
Licensed professionals who provide professional services through an entity are generally expected to use a professional entity such as a PLLC. Because the rules depend on your license and how you practice, confirm your choice with a Texas business attorney.
How much does it cost to form a PLLC in Texas?
The Secretary of State's filing fee for Form 206 is $300. Expect additional costs for a registered agent and, if you use a practice name different from your legal name, a $25 assumed name certificate.
Does my PLLC pay Texas franchise tax?
Most solo practices fall below the no-tax-due threshold ($2.65 million in annualized total revenue for the 2026 report), so they owe no franchise tax. They still must file the Public Information Report by May 15 each year.
This guide is general information, not legal, tax, or financial advice. Rules change, so confirm requirements with the relevant agency or a qualified professional before acting.