Do you need a PLLC instead of an LLC in Connecticut?

If you're a licensed professional in Connecticut thinking about starting a business, there's an important distinction you need to know: the state requires certain professionals to form a Professional Limited Liability Company (PLLC) rather than a standard LLC. Let's walk through what a PLLC is, who needs one, and what rules apply to PLLCs.

What makes a PLLC different from an LLC?

A PLLC is a special type of LLC designed for licensed professionals. In Connecticut, if your business provides services that require a license to perform, a standard LLC simply won't do. You'll need to form a PLLC instead.

The list of qualifying professions is long. It includes dentists, chiropractors, physicians, physical therapists, occupational therapists, naturopaths, nurses, veterinarians, pharmacists, architects, professional engineers, real estate brokers, insurance producers, certified public accountants, land surveyors, psychologists, attorneys, and licensed professional counselors.

Who can own a PLLC?

This is where PLLCs differ meaningfully from regular LLCs. To be a member (that's the legal term for an owner) of a PLLC, you must be licensed or otherwise authorized by law to provide the specific professional services the company offers. You can't simply bring in a business partner who isn't licensed in the relevant profession and make them a co-owner.

What can a PLLC actually do?

A PLLC is a focused entity. It can only provide one type of professional service, along with services that are directly ancillary to (meaning closely connected to and supportive of) that core service. It cannot branch out into unrelated businesses. If you're forming a PLLC for your chiropractic practice, that entity isn't the right vehicle for your unrelated property management side project.

What about multi-profession practices?

Connecticut recognizes that some practices bring together professionals from more than one discipline. In limited circumstances, a PLLC may be used to deliver professional services across two or more licensed professions, but only for the following specific combinations:

• Psychology, marital and family therapy, social work, nursing, and psychiatry

• Medicine and surgery, occupational therapy, social work, and alcohol and drug counseling

• Medicine and surgery, and chiropractic

What goes in the name?

Connecticut law requires that the name of a PLLC must include either the full phrase "professional limited liability company" or one of the abbreviations "P.L.L.C." or "PLLC."

If you need help forming a professional limited liability company or have questions about operating one, contact Levene Legal today.