Colorado Professional LLC (PLLC) — Requirements & Formation

A Professional Limited Liability Company (PLLC) is required in Colorado for LLCs formed to provide licensed professional services. Under the Colorado LLC Act, certain professions must form as professional entities rather than standard LLCs. The formation process and cost are the same ($50), but additional requirements apply. For general formation, see how to form a Colorado LLC. For all types, see our LLC types overview.

What Is a Professional LLC?

A PLLC is an LLC that can render professional services requiring a state license. Under Colorado law, licensed professionals cannot shield themselves from personal malpractice liability — but the PLLC protects members from the malpractice of other members and from general business liabilities.

Key distinction: A doctor in a PLLC is still personally liable for their OWN malpractice. But they're NOT liable for their partner's malpractice or for general business debts (rent, equipment loans, vendor disputes).

Professions Requiring PLLC in Colorado

Colorado requires a professional entity (PLLC or PC) for professions regulated by DORA (Department of Regulatory Agencies) and other boards:

• Medical: Physicians (MD/DO), dentists, chiropractors, physical therapists, optometrists, veterinarians
• Legal: Attorneys (regulated by Colorado Supreme Court)
• Accounting: Certified Public Accountants (CPAs)
• Engineering: Professional Engineers (PE)
• Architecture: Licensed architects
• Psychology/Counseling: Licensed psychologists, professional counselors
• Pharmacy: Licensed pharmacists
• Real estate (in some contexts): Appraisers and brokers forming entities for practice
• Nursing: Advanced practice nurses in some structures

Check with your licensing board (dora.colorado.gov) to determine if your profession requires a PLLC.

Formation Requirements

Beyond standard LLC formation, PLLCs must:

1. All members must be licensed in the profession the PLLC will practice (or licensed in a related profession if state rules allow)
2. LLC name must indicate professional status — Include "Professional Limited Liability Company," "PLLC," or "P.L.L.C."
3. Services limited to the profession — The PLLC can only render services within its licensed scope (though it can hold property, hire staff, etc. ancillary to the practice)
4. Licensing board notification — Some boards require notification when practitioners form or join a PLLC

Formation Process

1. Confirm all members hold active Colorado licenses for the profession
2. Choose a PLLC name (including "PLLC" designator)
3. Search name availability at sos.colorado.gov
4. File Articles of Organization — indicate it's a professional LLC ($50)
5. Designate a registered agent (same requirements as standard LLC)
6. Create an operating agreement addressing professional practice requirements
7. Notify your licensing board of the new entity (if required)

Liability Protection — What's Covered and What's Not

Operating Agreement for PLLCs

Professional LLC operating agreements should include standard provisions plus:

• License maintenance requirements (what happens if a member loses their license)
• Professional liability insurance requirements for all members
• Restrictions on ownership transfer (can only transfer to other licensed professionals)
• Succession planning (retirement, death, disability of practicing members)
• Non-compete and non-solicitation clauses

FAQ

Can a non-licensed person be a member of a PLLC?

Generally no. Colorado requires all members of a PLLC to be licensed in the profession (or a related profession the state allows). Non-licensed individuals cannot hold ownership interests.

Is a PLLC the same cost as a regular LLC?

Yes. Formation is $50, and the annual Periodic Report is $25. Same fees as a standard LLC. The cost difference comes from professional liability insurance (malpractice coverage), which is a practical necessity for any PLLC.

Can my PLLC include different types of professionals?

It depends on Colorado regulations for each profession. Some licensed professions allow inter-professional PLLCs (e.g., lawyers and accountants in some structures); others restrict membership to a single profession. Check with DORA and your specific licensing board.

Do I still need malpractice insurance with a PLLC?

Yes. The PLLC does not shield you from your own professional malpractice — that liability remains personal. Professional liability (malpractice) insurance is essential regardless of entity structure.