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PLLC vs LLC

What’s the difference between a PLLC and an LLC?

An LLC is a Limited Liability Company. If set up properly, an LLC will protect your personal assets, such as your house, car, and other personal belongings. Establishing an LLC separates your personal assets from your business assets. If your business fails, only your business assets can be used to settle its debts..

Most small business that want to incorporate form LLCs.

But what are PLLCs, and how do they compare to LLCs?

A PLLC is an LLC for certain industries. If your industry requires you to have a license or certification, this usually means you should be a PLLC. If you are a Private Therapy practice in Washington State you should be a PLLC.

A quick question you can ask yourself is: do I require continuing education each year? If the answer is maybe, you should talk to a lawyer to confirm whether you should register as a PLLC or LLC.

Uhhh…What if I might already be an LLC and shouldn’t be?

Well, we’re always happy to help Therapy clients email the Secretary of State to start the process of changing from an LLC to a PLLC. The Secretary of State will send paperwork to correct this, and you’ll likely just need to fill it out and pay a small processing fee.

TL;DR: If you are a Therapy Practice you should be a PLLC.

P.S. Want to learn how to manage your money better as a therapist? Now you can learn directly from Toni Cameron, CPA with our new on-demand webinars! Check out our most popular webinars here.
Khaled - TLDR

Khaled Albadawi, CPA

Principal & CEO

Khaled joined TL;DR as Principal in December of 2022, and has quickly hit the ground running offering a fresh new perspective for the TL;DR team and clients. He’s a natural entrepreneur & leader, starting his days at 4 AM with a nice cup of coffee to get a jumpstart on projects before the business world wakes up. His one piece of advice to business owners? Ask yourself if you are creating just another job or a business. Ideally, you should be building something that doesn’t require you to be there 40 hours a week!

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