Arizona LLC owners who work in certain professions may form what’s known as a PLLC. Here’s what that means, and how to register one:
What is an Arizona PLLC?
PLLC stands for professional limited liability company. While it may seem like a vague term, “professional service” is defined in many state statutes (including AZ Rev Stat § 29-4101) as a service “that may be lawfully rendered only by a licensed person.” Such licensed professions typically include, but are not limited to:
- Architects
- Attorneys
- Engineers
- Medical doctors
- Psychiatrists
- Real estate agents
For more information, check out Northwest’s page on Professional LLCs.
Is it necessary to form a PLLC in Arizona?
No. Arizona statutes do not require businesses that render professional services to file as PLLCs. In fact, AZ Rev Stat § 29-4101 states that Arizona’s PLLC statutes do not “alter the right of licensed persons to perform professional services in any other business form allowed by law.” In other words, you may do work as an architect (for example) and own a traditional Arizona LLC.
For the most part, licensed professions are regulated by their respective licensing boards. (For board information, see Arizona’s E-Licensing page.) One exception to the rule is the Arizona Department of Real Estate (ADRE), which requires real estate sales agents to form PLLCs using the ADRE’s own application (Form LI-231).
How do I get an Arizona PLLC?
Unless you’re in the business of real estate (see above), getting a PLLC is nearly as simple as checking a box in your Arizona Articles of Organization. But before you elect to file as a PLLC, you’ll have to ensure:
- All members are licensed professionals
- All members’ licenses are current
- At least one member is legally licensed in Arizona
- Your business name includes the term “professional limited liability company,” or some version of it like “PLLC,” “P.L.L.C.,” “PLC,” or “P.L.C.” (either in uppercase or lowercase letters)
If you have lingering questions about PLLCs—or how liability works for licensed professionals—it’s a good idea to check in with a business attorney to make sure you’re making the right decisions for your business.