LLC or PLLC?

What’s the Difference—And Which One’s Right for You?

If you’re a mental health professional in Massachusetts, chances are this question has left you scratching your head. Maybe you tried to register your practice as an LLC, only to get a rejection. Or perhaps you successfully registered your LLC, while your colleagues were told something entirely different. Most likely, you’ve heard about a million conflicting answers and are still left wondering: What’s the deal?

Let’s break it down.

First Things First: LLC and PLLC Are Basically the Same Thing

Both LLCs (Limited Liability Companies) and PLLCs (Professional Limited Liability Companies) serve the same purpose:

• They protect you and your personal assets from liability.

• They help legitimize your business as a professional entity.

• They’re essential for tasks like setting up a business bank account, getting professional liability insurance, or registering with state agencies if you plan to expand and hire employees.

So far, so good, right? But here’s where it gets tricky.

The Limited Liability Company Act

Under the Massachusetts Limited Liability Company Act, any LLC formed to provide “professional services” must meet extra requirements. For mental health clinicians, “professional services” means any service requiring a valid state license. (Think LMHCs, LMFTs, LICSWs—you get the idea.)

Here’s what the law says these LLCs must do:

1. Indicate in the certificate of organization which professional services will be offered.

2. Meet conditions set by your profession’s regulatory board.

3. Provide a certificate from that board confirming compliance with their licensing requirements.

While the law doesn’t explicitly state “you must register as a PLLC,” these extra steps functionally turn LLCS into PLLCs.

So…What’s Actually Happening?

The Secretary of State seems to use some discretion in approving applications. In practice, this means some LLC applications get approved without issue, while others are required to jump through the PLLC hoops. To add to the confusion, some practices may be listed as LLCs in name but are actually registered as PLLCs when you check their official certificates.

The Bottom Line

If your work requires a professional license from a regulatory board, you should file as a PLLC.

For example in Massachusetts:

• LMHCs and LMFTs are regulated by the Board of Registration of Allied Mental Health and Human Services Professions.

• LICSWs are regulated by the Board of Registration of Social Workers.

When organizing your practice, reach out to your licensing board for the necessary documentation to include with your PLLC certificate of organization.

It’s a little extra work upfront, but it’ll save you headaches down the road—and keep your practice in good standing.

This blog is intended for educational purposes only and does not constitute specific legal advice for any individual. Reading this material does not establish an attorney-client relationship between the reader and our firm. For personalized legal guidance, please consult a licensed attorney in your jurisdiction.