Attorney PLLC. Law firm entity requirements.
Law firms have entity structure restrictions. Most states require Professional LLC (PLLC) or Professional Corporation. Standard LLCs and C-Corps typically not permitted for legal practice. Ownership must be by licensed attorneys.
Start here.
PLLC, Professional Corporation (PC), Partnership, Sole Proprietorship.
Generally NOT permitted for legal practice.
All owners must be licensed attorneys in most states.
Many states require firm name to include attorney name or specific phrasing.
Each state where law is practiced requires its own firm registration.
The full picture.
Entity options for law firms
Professional Limited Liability Company (PLLC): most common modern structure. Professional Corporation (PC): older, still used. Partnership: general or limited. Sole Proprietorship: individual practice.
Why standard LLC is not permitted
State bar regulations typically prohibit standard LLCs for legal practice because they do not restrict ownership to licensed professionals. Some states explicitly prohibit this; others effectively do via professional conduct rules.
Ownership rules
Most states require ALL owners (members of PLLC or shareholders of PC) to be licensed attorneys. Non-attorney ownership prohibited. Foreign attorneys must be admitted to practice in the state.
Naming requirements
Many states require law firm name to include attorney name, "Law Firm," "Attorneys at Law," or similar. Some restrict use of non-attorney names. Trade names often restricted.
Designated responsible attorney
Each firm typically must have designated managing attorney responsible for firm operations and professional conduct compliance.
Trust account requirements
All law firms must maintain Interest on Lawyer Trust Account (IOLTA) for client funds. Strict rules govern: segregation, reconciliation, audit. State bar oversight.
Multi-state operations
Practicing law requires admission to each state's bar where you practice. Firm registration also required in each state. Unauthorized practice of law in unadmitted states is prohibited.
Continuing requirements
Annual firm registration. Individual attorney CLE (continuing legal education) requirements. State bar dues. Trust account audits.
Conflicts of interest
Different rules across states. Imputed conflicts can disqualify entire firm. Screening procedures may help.
Common questions.
Can I use a standard LLC for my law firm?
What is PLLC?
Can a non-attorney own equity?
What is IOLTA?
Naming rules?
Multi-state practice?
Audit risk?
Penalty for non-compliance?
Set up your professional firm.
PLLC formation, registered agent, ongoing compliance. We handle entity-level requirements; you handle the professional practice.
Professional licensing is handled by state boards. File.Business handles entity formation and ongoing compliance.
On the $129/yr Compliance Annual Filings plan, we cover state late fees.
When you autofile your annual report through the $129/yr plan and we miss the deadline, we pay the state's late fee. The guarantee applies to that specific plan and the filings it includes. Other File.Business services are billed at the prices on this page.