top of page

Physicians Beware: You Can't Form LLCs in These States - Essential Entity Formation Guide

Jul 17

8 min read

0

236

0

50-State Guideline for Physicians Forming Entities: LLC, PLLC, or PC


Discover the crucial states where forming a standard LLC is off-limits for physicians and learn about the alternative entities you need to know about. Navigate the maze of regulations with our comprehensive guide to ensure compliance and optimal practice structure in all 50 states.


DocWealth.io can handle all of this for you, offering full-service tax work and entity formation tailored specifically for physicians. Let our experts guide you through the complexities of professional entity formation and tax strategies, ensuring you stay compliant and maximize your financial benefits.


Below, you’ll find the requirements for physicians forming professional entities, such as LLCs, PLLCs, or PCs, across all 50 states. Each state has specific regulations, and contrary to popular belief in the physician community, a doctor cannot simply form an LLC in every state. In certain states, a physician must form a PLLC (Professional Limited Liability Company) or PC (Professional Corporation).

For example, in California, physicians must form a PC instead of an LLC. This guide is educational and not legal advice; always check with your state medical board for additional requirements.


Here are the states where physicians are not allowed to form LLCs (full details below, some states require/prefer PLLC over LLC):

  1. California

  2. Wisconsin


These states require physicians to form either a Professional Corporation (PC) or, where applicable, a Professional Limited Liability Company (PLLC) instead of a standard LLC.

See below for specific requirements for each state. Always verify with the state medical board for the most current requirements and updates​

Alabama

  • Entities Allowed: PLLC, PC

  • Requirements: PLLC is allowed if members or employees providing services are licensed. PC names must include "professional corporation" or "P.C."

  • Additional Note: Check with the Alabama state medical board for any additional requirements.

Alaska

  • Entities Allowed: LLC, PC

  • Requirements: Name must include "Corporation," "Incorporated," "Limited," "Corp.," "Inc.," "Ltd.," "a professional corporation," or "P.C."

  • Additional Note: Check with the Alaska state medical board for any additional requirements.

Arizona

  • Entities Allowed: PLLC, PC

  • Requirements: PLLC names must include "professional limited liability company" or abbreviations such as "PLLC." PC names must include "professional corporation" or similar terms.

  • Additional Note: Check with the Arizona state medical board for any additional requirements.

Arkansas

  • Entities Allowed: PLLC, PC

  • Requirements: PLLC names must include "Professional Limited Liability Company" or similar abbreviations. PC names must include shareholders' names and end with "Chartered," "Limited," "Professional Association," or similar terms.

  • Additional Note: Check with the Arkansas state medical board for any additional requirements.

California

  • Entities Allowed: PC

  • Requirements: Must be at least 51% owned by licensed physicians. PC is the only entity permitted for physicians; LLCs are not allowed.

  • Additional Note: Check with the California state medical board for any additional requirements.

Colorado

  • Entities Allowed: PLLC, PC

  • Requirements: PLLC names must include "Professional Limited Liability Company" or similar abbreviations. PC names must include "professional corporation" or similar terms.

  • Additional Note: Check with the Colorado state medical board for any additional requirements.

Connecticut

  • Entities Allowed: PLLC, PC

  • Requirements: PLLC names must include "Professional Limited Liability Company" or similar abbreviations. PC names must include "professional corporation" or similar terms.

  • Additional Note: Check with the Connecticut state medical board for any additional requirements.

Delaware

  • Entities Allowed: PC

  • Requirements: PC names must include "professional corporation" or similar terms.

  • Additional Note: Check with the Delaware state medical board for any additional requirements.

Florida

  • Entities Allowed: PLLC, PC

  • Requirements: PLLC names must include "Professional Limited Liability Company" or similar abbreviations. PC names must include "professional corporation" or similar terms.

  • Additional Note: Check with the Florida state medical board for any additional requirements.

Georgia

  • Entities Allowed: LLC, PC

  • Requirements: PLLC names must include "Professional Limited Liability Company" or similar abbreviations. PC names must include "professional corporation" or similar terms.

  • Additional Note: Check with the Georgia state medical board for any additional requirements.

Hawaii

  • Entities Allowed: LLC, PC

  • Requirements: PLLC is not available. PC names must include "professional corporation" or similar terms.

  • Additional Note: Check with the Hawaii state medical board for any additional requirements.

Idaho

  • Entities Allowed: PLLC, PC

  • Requirements: PLLC names must include "Professional Limited Liability Company" or similar abbreviations. PC names must include "professional corporation" or similar terms.

  • Additional Note: Check with the Idaho state medical board for any additional requirements.

Illinois

  • Entities Allowed: LLC, PC

  • Requirements: PLLC is not available. PC names must include "professional corporation" or similar terms.

  • Additional Note: Check with the Illinois state medical board for any additional requirements.

Indiana

  • Entities Allowed: LLC, PC

  • Requirements: PC names must include "professional corporation" or similar terms.

  • Additional Note: Check with the Indiana state medical board for any additional requirements.

Iowa

  • Entities Allowed: PLLC, PC

  • Requirements: PLLC names must include "Professional Limited Liability Company" or similar abbreviations. PC names must include "professional corporation" or similar terms.

  • Additional Note: Check with the Iowa state medical board for any additional requirements.

Kansas

  • Entities Allowed: LLC, PC

  • Requirements: PLLC is not available. PC names must include "professional corporation" or similar terms.

  • Additional Note: Check with the Kansas state medical board for any additional requirements.

Kentucky

  • Entities Allowed: PLLC, PC

  • Requirements: PLLC names must include "Professional Limited Liability Company" or similar abbreviations. PC names must include "professional corporation" or similar terms.

  • Additional Note: Check with the Kentucky state medical board for any additional requirements.

Louisiana

  • Entities Allowed: LLC, PC

  • Requirements: PLLC is not available. PC names must include "professional corporation" or similar terms.

  • Additional Note: Check with the Louisiana state medical board for any additional requirements.

Maine

  • Entities Allowed: PLLC, PC

  • Requirements: PLLC names must include "Professional Limited Liability Company" or similar abbreviations. PC names must include "professional corporation" or similar terms.

  • Additional Note: Check with the Maine state medical board for any additional requirements.

Maryland

  • Entities Allowed: LLC, PC

  • Requirements: PLLC is not available. PC names must include "professional corporation" or similar terms.

  • Additional Note: Check with the Maryland state medical board for any additional requirements.

Massachusetts

  • Entities Allowed: PLLC, PC

  • Requirements: PLLC names must include "Professional Limited Liability Company" or similar abbreviations. PC names must include "professional corporation" or similar terms.

  • Additional Note: Check with the Massachusetts state medical board for any additional requirements.

Michigan

  • Entities Allowed: PLLC, PC

  • Requirements: PLLC names must include "Professional Limited Liability Company" or similar abbreviations. PC names must include "professional corporation" or similar terms.

  • Additional Note: Check with the Michigan state medical board for any additional requirements.

Minnesota

  • Entities Allowed: PLLC, PC

  • Requirements: PLLC names must include "Professional Limited Liability Company" or similar abbreviations. PC names must include "professional corporation" or similar terms.

  • Additional Note: Check with the Minnesota state medical board for any additional requirements.

Mississippi

  • Entities Allowed: PLLC, PC

  • Requirements: PLLC names must include "Professional Limited Liability Company" or similar abbreviations. PC names must include "professional corporation" or similar terms.

  • Additional Note: Check with the Mississippi state medical board for any additional requirements.

Missouri

  • Entities Allowed: LLC, PC

  • Requirements: PLLC is not available. PC names must include "professional corporation" or similar terms.

  • Additional Note: Check with the Missouri state medical board for any additional requirements.

Montana

  • Entities Allowed: PLLC, PC

  • Requirements: PLLC names must include "Professional Limited Liability Company" or similar abbreviations. PC names must include "professional corporation" or similar terms.

  • Additional Note: Check with the Montana state medical board for any additional requirements.

Nebraska

  • Entities Allowed: LLC, PC

  • Requirements: PLLC is not available. PC names must include "professional corporation" or similar terms.

  • Additional Note: Check with the Nebraska state medical board for any additional requirements.

Nevada

  • Entities Allowed: PLLC, PC

  • Requirements: PLLC names must include "Professional Limited Liability Company" or similar abbreviations. PC names must include "professional corporation" or similar terms.

  • Additional Note: Check with the Nevada state medical board for any additional requirements.

New Hampshire

  • Entities Allowed: PLLC, PC

  • Requirements: PLLC names must include "Professional Limited Liability Company" or similar abbreviations. PC names must include "professional corporation" or similar terms.

  • Additional Note: Check with the New Hampshire state medical board for any additional requirements.

New Jersey

  • Entities Allowed: LLC, PC

  • Requirements: PLLC is not available. PC names must include "professional corporation" or similar terms.

  • Additional Note: Check with the New Jersey state medical board for any additional requirements.

New Mexico

  • Entities Allowed: LLC, PC

  • Requirements: PLLC is not available. PC names must include "professional corporation" or similar terms.

  • Additional Note: Check with the New Mexico state medical board for any additional requirements.

New York

  • Entities Allowed: PLLC, PC

  • Requirements: PLLC names must include "Professional Limited Liability Company" or similar abbreviations. PC names must include "professional corporation" or similar terms.

  • Additional Note: Check with the New York state medical board for any additional requirements.

North Carolina

  • Entities Allowed: PLLC, PC

  • Requirements: PLLC names must include "Professional Limited Liability Company" or similar abbreviations. PC names must include "professional corporation" or similar terms.

  • Additional Note: Check with the North Carolina state medical board for any additional requirements.

North Dakota

  • Entities Allowed: PLLC, PC

  • Requirements: PLLC names must include "Professional Limited Liability Company" or similar abbreviations. PC names must include "professional corporation" or similar terms.

  • Additional Note: Check with the North Dakota state medical board for any additional requirements.

Ohio

  • Entities Allowed: LLC, PC

  • Requirements: PLLC is not available. PC names must include "professional corporation" or similar terms.

  • Additional Note: Check with the Ohio state medical board for any additional requirements.

Oklahoma

  • Entities Allowed: PLLC, PC

  • Requirements: PLLC names must include "Professional Limited Liability Company" or similar abbreviations. PC names must include "professional corporation" or similar terms.

  • Additional Note: Check with the Oklahoma state medical board for any additional requirements.

Oregon

  • Entities Allowed: LLC, PC

  • Requirements: PLLC is not available. PC names must include "professional corporation" or similar terms.

  • Additional Note: Check with the Oregon state medical board for any additional requirements.

Pennsylvania

  • Entities Allowed: PLLC, PC

  • Requirements: PLLC names must include "Professional Limited Liability Company" or similar abbreviations. PC names must include "professional corporation" or similar terms.

  • Additional Note: Check with the Pennsylvania state medical board for any additional requirements.

Rhode Island

  • Entities Allowed: LLC, PC

  • Requirements: PLLC is not available. PC names must include "professional corporation" or similar terms.

  • Additional Note: Check with the Rhode Island state medical board for any additional requirements.

South Carolina

  • Entities Allowed: LLC, PC

  • Requirements: PLLC is not available. PC names must include "professional corporation" or similar terms.

  • Additional Note: Check with the South Carolina state medical board for any additional requirements.

South Dakota

  • Entities Allowed: PLLC, PC

  • Requirements: PLLC names must include "Professional Limited Liability Company" or similar abbreviations. PC names must include "professional corporation" or similar terms.

  • Additional Note: Check with the South Dakota state medical board for any additional requirements.

Tennessee

  • Entities Allowed: PLLC, PC

  • Requirements: PLLC names must include "Professional Limited Liability Company" or similar abbreviations. PC names must include "professional corporation" or similar terms.

  • Additional Note: Check with the Tennessee state medical board for any additional requirements.

Texas

  • Entities Allowed: PLLC, PC

  • Requirements: PLLC names must include "Professional Limited Liability Company" or similar abbreviations. PC names must include "professional corporation" or similar terms.

  • Additional Note: Check with the Texas state medical board for any additional requirements.

Utah

  • Entities Allowed: PLLC, PC

  • Requirements: PLLC names must include "Professional Limited Liability Company" or similar abbreviations. PC names must include "professional corporation" or similar terms.

  • Additional Note: Check with the Utah state medical board for any additional requirements.

Vermont

  • Entities Allowed: PLLC, PC

  • Requirements: PLLC names must include "Professional Limited Liability Company" or similar abbreviations. PC names must include "professional corporation" or similar terms.

  • Additional Note: Check with the Vermont state medical board for any additional requirements.

Virginia

  • Entities Allowed: PLLC, PC

  • Requirements: PLLC names must include "Professional Limited Liability Company" or similar abbreviations. PC names must include "professional corporation" or similar terms.

  • Additional Note: Check with the Virginia state medical board for any additional requirements.

Washington

  • Entities Allowed: PLLC, PC

  • Requirements: PLLC names must include "Professional Limited Liability Company" or similar abbreviations. PC names must include "professional corporation" or similar terms.

  • Additional Note: Check with the Washington state medical board for any additional requirements.

West Virginia

  • Entities Allowed: PLLC, PC

  • Requirements: PLLC names must include "Professional Limited Liability Company" or similar abbreviations. PC names must include "professional corporation" or similar terms.

  • Additional Note: Check with the West Virginia state medical board for any additional requirements.

Wisconsin

  • Entities Allowed: PC (SC)

  • Requirements: PC names must include "professional corporation" or similar terms.

  • Additional Note: Check with the Wisconsin state medical board for any additional requirements.

Wyoming

  • Entities Allowed: LLC, PC

  • Requirements: PC names must include "professional corporation" or similar terms. LLC is also available.

  • Additional Note: Check with the Wyoming state medical board for any additional requirements.



A realistic drawing of a cheerful physician in scrubs walking along a beautiful beach, enjoying the scenic view. This image represents the work-life balance that DocWealth.io helps physicians achieve by providing comprehensive tax and entity formation services tailored to their unique needs.



Jul 17

8 min read

0

236

0

Comments

Share Your ThoughtsBe the first to write a comment.
bottom of page