Does New Jersey allow professional LLCs for doctors and lawyers?
No. New Jersey does not permit professional LLCs (PLLCs). Doctors, lawyers, and other licensed professionals cannot form an LLC under New Jersey law. The state's LLC statute does not provide for professional limited liability companies, and no eligible professions are designated for this business structure.
What Structure Must Professionals Use?
Licensed professionals in New Jersey must form a Professional Corporation (PC) instead. The New Jersey Professional Corporation Act governs this structure and permits doctors, lawyers, accountants, architects, engineers, and other regulated professionals to incorporate while maintaining professional liability standards.
Doctors are regulated by the State Board of Medical Examiners. Lawyers fall under the Supreme Court of New Jersey. Both professions require a PC, not an LLC.
Why No Professional LLCs?
New Jersey's Limited Liability Company Act (N.J.S.A. 42:2B-1 et seq.) does not include a professional LLC option. Unlike many states that created PLLCs in the 1990s and 2000s, New Jersey has maintained the Professional Corporation as the sole liability-protected structure for regulated professionals.
This restriction applies uniformly—no exceptions exist for any profession.
Alternative Structures
If a PC doesn't fit your needs, limited alternatives exist:
- General Partnerships (GPs): No liability protection; all partners face personal liability.
- Limited Partnerships (LPs): Rarely used for professional practices; complex to manage.
- Sole Proprietorship: Available but offers no liability protection.
The Professional Corporation remains the standard and legally required option for most licensed professionals.
Licensing Requirements
Individual professional licenses are mandatory regardless of entity type. Doctors must obtain licensure from the State Board of Medical Examiners. Lawyers must be admitted to the New Jersey Bar. These licensing requirements are separate from business entity formation and cannot be bypassed by choosing any particular business structure.
Next Steps
- Consult a New Jersey business attorney to determine whether a Professional Corporation suits your practice.
- Contact your professional licensing board to confirm entity-specific requirements.
- File your PC with the New Jersey Division of Revenue and Enterprise Services.
- Obtain your professional license through your state licensing board.
- Register for taxes through NJ-REG (New Jersey tax and employer registration).
Do not attempt to form an LLC—New Jersey will not approve it for licensed professionals.
This is general information, not legal advice. Consult a licensed attorney for guidance specific to your situation.