Certain Professionals Should Form a PLLC or PC in Massachusetts
Licensed professionals in Massachusetts need to know the difference between a PLLC and an LLC before starting their business. State laws may require professionals like physicians, dentists, lawyers, accountants, architects, engineers, chiropractors, and psychologists to form a professional entity (e.g., a “PC” — a Professional Corporation — or a “PLLC” — a Professional Limited Liability Company).
For example, Massachusetts General Laws Chapter 156C, Section 6(c) states:
A limited liability company or foreign limited liability company which is organized to render a professional service as defined in section two of chapter one hundred and fifty-six A shall:
(i) indicate in its certificate of organization or application for registration the specific professional services which it shall render,
(ii) be subject to any conditions or limitations established by any applicable regulating boards as defined in said section 2, including the provision of liability insurance required by section sixty-five, and
(iii) include with its certificate of organization or application for registration a certificate by the applicable regulating board which indicates compliance as of the date of organization or registration by the members and managers with any eligibility standards established by such regulating board.
What is a PLLC or PC in Massachusetts?
A “professional” entity is one formed pursuant to and in compliance with certain state laws and regulations. Licensed professionals that form a business to perform professional services in Massachusetts may be able to form a ‘standard’ LLC, but if the character of the business identifies a professional service, they will be required to comply with certain requirements or the Massachusetts corporations division will reject the filing.
PCs and PLLCs are a ‘professional’ version of the ‘standard’ PC or LLC, and are designed only for licensed professionals. These ‘professional’ entities help protect the public by requiring the professional-incorporator to provide proof of licensure and good standing from the regulatory board in the state.
‘Professional’ entities share several key features:
- Only licensed professionals in the same field can own the ‘professional’ entity (i.e. only lawyers can own a law firm, only licensed healthcare professionals can own certain types of entities formed to provide medical services)
- Professional licensing boards oversee the professionals that own them, and
- The professionals that form the entity need to obtain a certificate of good standing from the applicable regulatory board.
Massachusetts General Laws ch. 156, sec. 6(c) provides that these licensed professionals, among others, must form a Professional Limited Liability Company (PLLC) or Professional Corporation (PC):
- Physicians and surgeons
- Dentists
- Attorneys
- Certified public accountants
- Architects and engineers
- Chiropractors
- Psychologists and therapists
- Podiatrists and optometrists
- Registered nurses
- Veterinarians
- Physical therapists
- Acupuncturists
- Electrologists
The state requires any profession needing a state license or registration to organize under these specialized structures. This helps maintain professional standards and accountability effectively.
Professionals must get approval from their regulatory boards before they can establish a PLLC or PC. To name just one example, physicians need certification from the Board of Registration in Medicine as specified in M.G.L. c. 156A §7 (for PCs) or M.G.L. c. 156C §4(c) (for LLCs).
Final Thoughts
Navigating entity formation as a licensed professional in Massachusetts is not as simple as filing a standard LLC or corporation. The Commonwealth imposes specific and sometimes rigid requirements for those rendering professional services — not to burden you, but to protect the public and uphold the integrity of licensed fields. Whether you’re a physician opening a private practice, an attorney launching a firm, or a psychologist forming a group clinic, forming the correct type of entity — a PLLC or PC — is not just a legal formality; it’s a regulatory necessity.
Failing to comply with the statutory requirements can delay your launch, jeopardize your licensure status, or result in rejected filings. More importantly, it can create potential liability and reputational risk if your business is not properly structured from day one.
This is why professional guidance is crucial. Understanding the nuances of Massachusetts General Laws, aligning with your licensing board’s standards, and correctly structuring your entity can save you time, money, and future headaches.
If you’re unsure where to start or want peace of mind that your formation process is airtight, contact us today. We’ll walk you through every step — from choosing the right entity to securing regulatory approval — so you can focus on doing what you do best: delivering professional services with confidence and compliance.
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