A Texas licensed professional forming a practice entity has one statutorily correct option for most fields: the PLLC under Chapter 304 of the Texas Business Organizations Code. A standard LLC is not available for the regulated practice itself. A PC is a corporate alternative with a narrower set of use cases. The formation work is straightforward when done right and creates years of administrative friction when done wrong.
Who this is for
- +Texas attorneys, physicians, accountants, engineers, architects, and other licensed professionals organizing a new practice as a single-member or multi-member PLLC.
- +Texas professionals currently operating as a sole proprietor or as an improperly formed LLC who need to convert into the correct entity structure.
- +Texas professionals admitting a new licensed partner into an existing practice and needing the operating agreement updated to reflect the new ownership and governance.
- +Multi-state practices establishing a Texas PLLC alongside entities in other jurisdictions where the professional is licensed.
What the flat-fee formation engagement covers
Certificate of Formation filing with the Texas Secretary of State, EIN issuance through the IRS, federal tax classification analysis (default disregarded or partnership taxation plus S-corporation election analysis in coordination with the client's CPA), operating agreement tailored to the practice's actual fee-sharing structure and partner mechanics, banking resolution suitable for the client's bank, registered agent designation, and licensing board filing where the board requires entity registration.
For multi-member PLLCs the operating agreement includes capital contribution provisions, profit and loss allocation, distribution mechanics, decision-rights and voting thresholds, partner admission and exit procedures, buy-sell triggers for death, disability, retirement, voluntary withdrawal, and involuntary removal, deadlock resolution, and valuation methodology. Templates do not address any of those points specifically. We draft for the practice in front of us.
Why flat fee
Formation work has predictable inputs and predictable deliverables. A flat fee lets the client know what the engagement will cost from the first call and lets us scope the work to the practice's actual situation rather than billing in fifteen-minute increments. Most single-member formations close within two weeks of intake. Multi-member formations with full operating agreements close within three to four weeks.
Related reading
See our long-form analysis: PLLC, LLC, or PC for a Texas professional practice. What each entity actually protects. Covers the four decision questions, three common mistakes, and when to bring counsel in.
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