Key Takeaways
- Alabama recognizes the PLLC as a distinct entity type for licensed professionals (Code of Alabama Title 10A, Ch. 5A, Article 8 (§ 10A-5A-8.01 et seq.))
- Alabama requires licensing board approval before the filing agency will accept your PLLC filing
- Filing fee: $200 (plus $25-$28 for the mandatory prior Name Reservation)
- Not confirmed either way in Alabama statute. Because the licensing documentation requirement is tied to a specific profession's board (e.g., the Board of Medical Examiners for physicians), combining unrelated professions under one PLLC would likely require satisfying each profession's own board requirements — treat this as something to confirm before assuming it's allowed.
- LLC Attorney does not form PLLCs or other professional entities — this guide is educational; where your profession permits a standard LLC or corporation, LLC Attorney can form that
If you're a licensed professional in Alabama — a doctor, lawyer, accountant, or similar occupation — state law generally requires you to form a Professional LLC (PLLC) instead of a standard LLC, with ownership restricted to people who hold the same license.
This guide covers exactly how to form an Alabama PLLC in 2026 — which professions need one, why the filing has to go in by mail instead of online, the $200 cost, and what liability protection a PLLC actually provides for negligent professional acts.
What Is a Alabama PLLC?
A Professional Limited Liability Company (PLLC) is a special LLC designation for licensed professionals — doctors, lawyers, accountants, and similar occupations. It works like a regular LLC, but ownership is restricted to people who hold the same professional license, and formation often requires sign-off from your licensing board before the state will accept your filing.
Yes. Alabama recognizes the PLLC as a distinct entity type for licensed professionals (Code of Alabama Title 10A, Ch. 5A, Article 8 (§ 10A-5A-8.01 et seq.)).
Who Needs a PLLC in Alabama?
Physicians and osteopaths are explicitly named in statute and must file a certificate with the Alabama Board of Medical Examiners alongside their formation paperwork. Attorneys, CPAs, dentists, architects, and engineers also commonly organize as PLLCs under Article 8's broader professional-services framework.
Alabama's professional-services statute lists specific covered professions; occupations that fall outside that enumerated list can generally use a standard LLC without the PLLC designation or its documentation requirements.
Do I Need Licensing Board Approval First?
Required specifically for medical and dental practices: physicians and osteopaths must file a certificate with (or notify) the Alabama Board of Medical Examiners, and a copy of the professional license must physically accompany both the mandatory Name Reservation and the Certificate of Formation filings.
The license documentation goes in with the formation paperwork rather than as a separate pre-clearance step, but because it must accompany a mailed filing, plan for it to add real time to your timeline compared to an instant online LLC filing.
How to Form a Alabama PLLC
- Filing agency: Alabama Secretary of State, Business Services
- Form: Certificate of Formation
- Filing fee: $200 (plus $25-$28 for the mandatory prior Name Reservation)
- Processing time: Several business days to about 2 weeks, given the mail-only requirement for PLLC filings
- Name requirement: Must contain "Limited Liability Company"/"LLC"/"L.L.C."; PLLCs may additionally use "Professional" before the designator, or "PLLC"/"P.L.L.C."
Who Can Own a Alabama PLLC?
Members generally must hold the professional license relevant to the services rendered — proof of license is required at filing for at least the medical/dental context, and loss of licensure by a member triggers mandatory ownership-transfer obligations rather than allowing continued ownership by an unlicensed person.
Not confirmed either way in Alabama statute. Because the licensing documentation requirement is tied to a specific profession's board (e.g., the Board of Medical Examiners for physicians), combining unrelated professions under one PLLC would likely require satisfying each profession's own board requirements — treat this as something to confirm before assuming it's allowed.
What Liability Protection Does a PLLC Actually Provide?
A PLLC protects you from business debts and from a co-owner's malpractice — but it never shields you from your own malpractice. If you personally provide negligent professional services, you remain personally liable for that regardless of the entity structure.
Alabama's PLLC structure follows the standard rule: it shields members from each other's malpractice and from ordinary business debts, but never from a member's own negligent professional acts — individual professionals retain full personal liability for their own conduct regardless of the PLLC wrapper.
No statutory malpractice-insurance minimum tied to PLLC formation itself was confirmed — check whether your specific licensing board separately conditions your license on carrying coverage.
How Is a Alabama PLLC Taxed?
By default, a PLLC is taxed exactly like a regular LLC — pass-through to the owners' personal returns, with the option to elect S-corp or C-corp taxation if that fits your situation better. The professional designation changes ownership eligibility and licensing oversight, not the default federal tax treatment.
Alabama has a graduated personal income tax (up to 5% on the top bracket for 2026), so a PLLC's default pass-through profit is taxed on members' personal returns in addition to federal tax.
Alabama PLLCs owe the standard Business Privilege Tax — 0.25% on the first $200,000 of net worth, declining in brackets to 0.075% above $1 million, with a $50 minimum. Act 2024-213 eliminated the separate annual report requirement effective October 1, 2024, simplifying ongoing compliance somewhat.
Alabama is one of the only states that requires PLLC filings to go in by mail rather than online, specifically because a physical copy of the professional license must accompany the paperwork — don't expect the same-day turnaround a standard Alabama LLC filing gets.
How to Set Up Your Alabama PLLC Step by Step
If You Do It Yourself
Step 1 — Confirm you need a PLLC (not a plain LLC) for your profession.
Physicians and osteopaths are explicitly named in statute and must file a certificate with the Alabama Board of Medical Examiners alongside their formation paperwork. Attorneys, CPAs, dentists, architects, and engineers also commonly organize as PLLCs under Article 8's broader professional-services framework.
Step 2 — Get licensing board sign-off if required.
Required specifically for medical and dental practices: physicians and osteopaths must file a certificate with (or notify) the Alabama Board of Medical Examiners, and a copy of the professional license must physically accompany both the mandatory Name Reservation and the Certificate of Formation filings. The license documentation goes in with the formation paperwork rather than as a separate pre-clearance step, but because it must accompany a mailed filing, plan for it to add real time to your timeline compared to an instant online LLC filing.
Step 3 — File your formation documents.
File the Certificate of Formation with Alabama Secretary of State, Business Services, $200 (plus $25-$28 for the mandatory prior Name Reservation).
Step 4 — Appoint a registered agent.
Alabama calls this role a "Registered Agent" — required at formation.
Step 5 — Confirm ownership eligibility for every member.
Members generally must hold the professional license relevant to the services rendered — proof of license is required at filing for at least the medical/dental context, and loss of licensure by a member triggers mandatory ownership-transfer obligations rather than allowing continued ownership by an unlicensed person.
Step 6 — Address malpractice insurance requirements.
No statutory malpractice-insurance minimum tied to PLLC formation itself was confirmed — check whether your specific licensing board separately conditions your license on carrying coverage.
Step 7 — Handle ongoing state compliance.
Alabama PLLCs owe the standard Business Privilege Tax — 0.25% on the first $200,000 of net worth, declining in brackets to 0.075% above $1 million, with a $50 minimum. Act 2024-213 eliminated the separate annual report requirement effective October 1, 2024, simplifying ongoing compliance somewhat. Alabama has a graduated personal income tax (up to 5% on the top bracket for 2026), so a PLLC's default pass-through profit is taxed on members' personal returns in addition to federal tax.
Step 8 — Watch for Alabama-specific PLLC traps.
The most common Alabama-specific mistake is trying to file a PLLC online the way you would a regular LLC — Alabama requires mail submission specifically for PLLCs because of the license-documentation requirement, and an online attempt will simply be rejected.
Where LLC Attorney Fits In
LLC Attorney doesn't form Alabama PLLCs or other professional entities, and the filing steps above are for you or your attorney to complete. What we can do:
- Form a standard Alabama LLC or corporation the same day where your profession permits one.
- Handle S-corp elections.
- Serve as your Registered Agent (registered agent).
- Connect you with flat-fee attorney consultations (no retainer) for licensing and ownership questions before you file.
When Should You Talk to an Attorney About Your Alabama PLLC?
Talk to an attorney before forming your Alabama PLLC if you're unsure whether your specific profession requires the mail-only PLLC route versus a standard LLC, if a member's licensure could lapse or change and you need the ownership-transfer mechanics set up correctly in advance, or if your practice spans more than one licensed profession.
Is Alabama a State Where PLLC Formation Is More Complex?
Alabama adds a documentation step most states skip: your actual professional license copy has to physically accompany both the Name Reservation and the Certificate of Formation, and that requirement is exactly why PLLC filings can't go in online. If you're used to same-day electronic LLC formation, budget more time here.
How LLC Attorney Can Help Alabama Professionals
LLC Attorney doesn't form professional entities like PLLCs. This guide exists so professionals get the Alabama rules right — here's what we do offer.
- Standard LLC or corporation formation in Alabama, where your profession permits one — no markup on state fees.
- S-corp election handling when that fits your tax situation.
- Registered agent (Registered Agent) service in Alabama.
- Access to professionally trained Business Success Advisors at no charge, plus flat-fee attorney consultations (no retainer) for licensing and ownership questions.
Need Help Starting Your Alabama Business?
LLC Attorney doesn't form professional entities like PLLCs; if your profession allows a standard LLC or corporation in Alabama, we can form it and serve as your registered agent; if you're unsure which entity your license requires, a flat-fee attorney consultation can settle it before you file. See our full pricing for all service tiers.
Frequently Asked Questions
Yes. Alabama recognizes the PLLC as a distinct entity type under Title 10A, Chapter 5A, Article 8 of the Code of Alabama.
Physicians and osteopaths are explicitly named in statute and must file a certificate with the Alabama Board of Medical Examiners. Attorneys, CPAs, dentists, architects, and engineers also commonly organize as PLLCs.
Yes, for medical and dental practices specifically — physicians and osteopaths must file a certificate with the Alabama Board of Medical Examiners, and a copy of the professional license must accompany the formation paperwork.
The Alabama PLLC filing fee is $200, plus $25-$28 for the mandatory prior Name Reservation. Because PLLC filings must go in by mail, allow several business days to about two weeks for processing.
Members generally must hold the professional license relevant to the services rendered, and proof of license is required at filing for at least the medical/dental context. Loss of licensure by a member triggers mandatory ownership-transfer obligations.
Not clearly confirmed either way — because licensing documentation ties to a specific profession's board, combining unrelated professions under one PLLC would likely need each board's separate sign-off. Confirm before assuming it's allowed.
An Alabama PLLC shields members from each other's malpractice and from ordinary business debts, but never from a member's own negligent professional acts — that liability always follows the individual professional.
No statutory malpractice-insurance minimum tied to PLLC formation itself was confirmed — your specific licensing board may separately require coverage as a condition of maintaining your license.
No. LLC Attorney does not form PLLCs, professional corporations, or other license-restricted professional entities in Alabama or anywhere else. We form standard LLCs and corporations (including S-corp elections), provide registered agent service, and offer flat-fee attorney consultations if you need help confirming which entity your license allows.