You are a licensed professional. You have put in the time. The training, the exams, the certifications. Now you are ready to offer your services on your terms. And the question comes up fast.
Do you need to form a PLLC? And if so, how do you get the EIN number that makes everything official?
This is where it gets real. Where your business stops being an idea and becomes a legal structure. Where tax agencies get involved. Where banks stop asking and start requiring documentation. And where most professionals hit pause because the process feels murky.
Let’s break it down.
What Is a PLLC and Who Needs One
A PLLC is a Professional Limited Liability Company. It is not for everyone. Only certain licensed professionals can form one.
That list usually includes doctors, attorneys, dentists, architects, accountants, and sometimes even therapists. But the exact professions depend on your state.
If you are offering services that require a license to practice, chances are your state will require you to form a PLLC rather than a regular LLC.
Why? Because states want that extra layer of oversight. They want to make sure licensed professionals are held to higher standards, both legally and ethically.
So What’s the First Step
You start with your state licensing board. Before you file anything with your Secretary of State, your profession may need approval from the board that issued your license.
Not all states ask for this. But many do. And skipping that step can lead to delays or rejections later.
Get that written approval. Then move forward with forming the PLLC at the state level.
Naming Your PLLC
This is not just about branding. Your state will likely have naming rules.
Most require you to include “PLLC” or “Professional Limited Liability Company” in the business name. You cannot choose a vague name that hides the professional nature of your services. And you definitely cannot use a name that implies you offer services you are not licensed to perform.
If you are a licensed psychologist, your PLLC should reflect that. If you are a CPA, that should be clear too.
And once you pick your name? Do a quick search to make sure no one else is using it. You do not want legal issues down the line because your name looks too much like someone else’s.
Filing With the Secretary of State
This is where your PLLC becomes official. You will submit articles of organization or a similar document, depending on the state.
Be careful during this step. Some states use the same form for both LLCs and PLLCs. Others have a separate one. Use the wrong form, and you could waste time and money.
You will also pay a filing fee. It could be fifty dollars or five hundred. Every state has its own rules. Know what you are walking into before you click submit.
The EIN Number – Why It Matters
Once your PLLC is approved by the state, it is time to apply for an EIN. This is your Employer Identification Number. It is issued by the IRS and acts like a Social Security number for your business.
You need it for almost everything. Hiring employees. Opening a business bank account. Filing taxes. Applying for loans. Even some vendors will not work with you without one.
Do not assume you can skip this step just because you are a single member PLLC. Even solo professionals need an EIN in most cases.
How to Get Your EIN for a PLLC
This part is easier than most people think. The IRS makes it simple.
Go to the IRS website. Use the online EIN application. Fill out the form during business hours, Monday through Friday.
You will choose the type of entity. In this case, it will be an LLC. Then you will be asked if the company will offer professional services or require licensing. That is where the IRS identifies your PLLC setup.
Once submitted, you usually receive the EIN instantly. A PDF will be generated. Print it. Save it. You will need that number constantly.
Mistakes to Avoid When Applying for an EIN
First, make sure the name on your EIN application matches exactly what is on your articles of organization. Any extra punctuation or missing letters can lead to a mismatch. That can create banking issues later.
Second, do not apply before your state approves your PLLC. The IRS does not validate your business name in advance. If your PLLC filing is rejected later, you will be stuck with an EIN tied to a business name that does not legally exist.
Third, do not list the wrong person as the responsible party. That person becomes the main point of contact with the IRS. Choose carefully.
Opening a Business Bank Account
Once you have your EIN, your next stop is the bank.
They will usually ask for your PLLC formation documents, your EIN confirmation letter, and your operating agreement if you have one.
Without these, most banks will not even let you start the process. Do not assume you can just walk in with your license and get a business account. They want paperwork. And a lot of it.
Setting this up early helps you keep your personal and business finances separate. That is critical for tax purposes and legal protection.
What About Taxes for a PLLC
Your tax situation depends on how your PLLC is structured.
If you are the only member, the IRS will usually treat it as a disregarded entity. You report business income on your personal return. But you still need that EIN for banking and employment purposes.
If your PLLC has multiple members, it is taxed as a partnership unless you elect something else.
You can also choose to be taxed as an S corporation. That can come with savings on self-employment tax, but it adds complexity. Do not make that move without speaking to a tax advisor first.
The EIN does not determine your tax structure. But you cannot choose any structure without one.
Professional Liability and Licensing Rules
Just because you form a PLLC does not mean you are shielded from professional malpractice claims. The PLLC protects you from business debts and liability related to other members. It does not protect you from your own professional negligence.
That is why many professionals still carry liability insurance. It adds a layer of protection that your entity structure cannot provide.
Some states also require you to renew or re-certify your PLLC with your licensing board each year. Miss that and you could lose your ability to operate under the PLLC name.
Operating Agreements Still Matter
Some people skip the operating agreement, especially solo professionals. That is a mistake.
Even if you are the only member, having one helps clarify how your business will operate. It can cover how money is distributed, how taxes are handled, and how decisions are made.
Banks may ask for it. Partners definitely will. And if you ever get audited or sued, having this document could help prove that your PLLC is being run properly.
What Happens After Setup
Once your PLLC is formed and your EIN is issued, your responsibilities do not stop.
Track deadlines. File annual reports. Renew your license. Stay current with tax filings.
Your PLLC is not just a title. It is a legal entity with real requirements. Treat it like one.
When to Call in Professional Help
If this all feels overwhelming, that is normal. Many professionals outsource the formation process to attorneys or accountants. That does not mean you are less capable. It means you understand the value of your time.
But even if you hire someone, understand the basics. Know what documents you need. Know where your money is going. Know why each step matters.
This is your business. No one else will care about it as much as you do.
So What’s the Bottom Line
Getting an EIN for your PLLC is not hard. But getting to that step requires clear thinking, smart decisions, and a good understanding of your profession’s rules.
Start with your license. Build from there. Do not cut corners. Do not rush it. And always document everything.
Because once you get this right, your foundation is solid. You can focus on what you do best without worrying whether your business is legally protected or recognized by the IRS.