How to Form an LLC for Lawyers & Accountants in 2025 (Step-by-Step)

If you’re a lawyer or accountant running your own practice or planning to, you can’t afford to skip business formation. Whether you’re solo or building a small firm, setting up an LLC or PLLC gives you legal protection, builds credibility, and helps you run your practice like a real business.

But here’s the catch: not all LLCs are created equal, and not all states treat licensed professionals the same. In this guide, I’ll walk you through everything step by step, so you can establish your legal structure correctly the first time and avoid costly mistakes. Let’s break it down.

 

LLC vs PLLC: What’s the Difference?

If you’re a licensed professional (like a lawyer or CPA), your state may require you to form a PLLC (Professional Limited Liability Company) instead of a standard LLC.

A PLLC gives you the same personal asset protection as an LLC, but it doesn’t protect you from malpractice liability. You’ll still need insurance for that. The key difference is that PLLCs are regulated by your state’s licensing board, and often, all owners must be licensed professionals in the same field.

Key Point: Always check if your state requires a PLLC instead of an LLC for licensed professions. In some states (like California), you may be required to form a Professional Corporation (PC) instead.

 

Step 1: Check Your State’s Requirements

Start with your state’s Secretary of State website or your professional licensing board.

• Can you form an LLC or PLLC in your profession?
• Are there naming requirements?
• Do you need pre-approval from the licensing board?

This step is often skipped, but if your business is not structured correctly, it could be rejected, fined, or forced to dissolve later.

 

Step 2: Pick a Compliant Business Name

Naming a law or accounting firm isn’t like naming a YouTube channel. Most states require your business name to include your profession. For example:

• Correct: “Miller Legal PLLC” or “Anderson Tax Services, LLC”
• Wrong: “Quick Solutions Group” — vague and not compliant

Also, make sure your name isn’t already taken by checking your state’s business name search tool.

Pro Tip: Reserve your domain and social handles right after confirming your name availability.

 

Step 3: File Articles of Organization (or Incorporation)

This is your official LLC or PLLC filing with the Secretary of State. You’ll need to include:

• Business name
• Business address
• Registered agent info
• Confirmation of your professional license
• Names of owners or members

Most states allow you to file online in 10 to 15 minutes.

 

Step 4: Designate a Registered Agent

Every LLC or PLLC is required to list a registered agent, who receives legal notices on your behalf.

You can list yourself, but this means that legal mail may be delivered to your office or home. Not ideal.

Pro Tip: Use a registered agent service like:

• Northwest Registered Agent – Privacy-focused and dependable

 

• LegalZoom – Offers formation and compliance tools

 

• Bizee – Free LLC filing (pay only your state fees)

 

They’ll handle your paperwork and remind you about deadlines, which keeps you compliant and stress-free.

 

Step 5: Draft an Operating Agreement

Even if you’re solo, create an operating agreement. It explains how your practice is managed, how decisions are made, and how profits are handled. This is essential if you have partners, but it also protects you in legal situations and helps with opening a business bank account.

 

Step 6: Get an EIN (Employer Identification Number)

An EIN is like a Social Security Number for your business. You’ll need it to:

• Open a business bank account
• File business taxes
• Hire employees or contractors

Get it for free on the IRS website. It takes about 5 minutes.

 

Step 7: Set Up a Business Bank Account

This step is not optional. Keeping your personal and business finances separate is key to maintaining liability protection.

Use your EIN and Articles of Organization to open a business checking account. You can also apply for a business credit card to cover software, supplies, and firm expenses while earning points or cashback.

 

Step 8: Get the Right Insurance

Forming an LLC or PLLC doesn’t cover you against malpractice. You need:

• Professional liability (malpractice) insurance – Required in most states
• General liability – For office-related risks
• Cyber liability – For handling sensitive data

Protect yourself, your clients, and your license.

 

Step 9: Stay Compliant

Once your business is formed, you need to stay in good standing:

• File annual reports
• Renew your registered agent
• Keep your professional license active
• Maintain malpractice insurance
• Stay on top of taxes and bookkeeping

Use tools like QuickBooks or hire a CPA familiar with professional practices.

 

Common Mistakes to Avoid

Here are a few pitfalls that trip up first-time professionals:

• Forming an LLC when your state requires a PLLC or PC
• Choosing a non-compliant name
• Partnering with someone who isn’t licensed
• Forgetting to register with your licensing board
• Skipping malpractice insurance
• Mixing business and personal finances

These mistakes are avoidable if you follow the process carefully.

 

Final Thoughts

If you’re a lawyer or accountant going solo in 2025, forming an LLC or PLLC is more than paperwork. It’s your first move in becoming a professional, scalable, and legally protected business. The earlier you set things up the right way, the smoother your growth will be.

If you need help, you can use:

• LegalZoom for a guided LLC or PLLC formation

 

• Northwest or Bizee for privacy and registered agent support

 

• QuickBooks for easy bookkeeping

Get Started with QuickBooks

 

Your business deserves to be treated like a real one. Start with the right foundation and you’ll thank yourself later.