LLC vs PLLC in Georgia 2026: Formation Costs, Taxes & Compliance
Introduction
If you're starting a professional service business in Georgia—law, accounting, medicine, engineering—you need a PLLC. If you're running any other business, an LLC is your default choice. Both entities offer liability protection and pass-through taxation, but PLLCs carry mandatory ownership restrictions and professional licensing requirements that standard LLCs don't. This guide walks you through the exact cost, tax, and compliance differences so you can file with confidence.
FAQ: LLC vs PLLC in Georgia
What's the difference between an LLC and PLLC in Georgia?
A PLLC (Professional Limited Liability Company) is a specialized LLC structure for licensed professionals. Georgia permits PLLCs under O.C.G.A. § 14-11-1107(f)-(g) for professions whose licensing statutes allow LLC practice. Both entities file the same Articles of Organization document and pay identical formation fees, but PLLCs restrict ownership to licensed professionals in their field. If you're a solo professional like an attorney or accountant, a PLLC offers liability protection. If you're a general business, you must use a standard LLC.
Who can own a PLLC in Georgia?
Georgia restricts PLLC ownership to licensed professionals whose state licensing statutes explicitly permit practice through a limited liability company and whose ownership structure satisfies O.C.G.A. § 14-11-1107(f)-(g). You must verify your profession's licensing statute allows LLC ownership. Common eligible professions include attorneys (Georgia Bar), accountants (Georgia Board of Accountancy), architects (Georgia Board of Architects and Interior Designers), and engineers (Georgia Board of Professional Engineers). Contact the Georgia Secretary of State Professional Licensing Boards Division or your licensing board to confirm eligibility before filing.
What's the actual cost difference between filing an LLC and a PLLC in Georgia?
Both cost $110.00 to file with the Georgia Secretary of State under O.C.G.A. §§ 14-11-204 to 14-11-206. You'll also pay $60.00 annually for your Annual Registration (due between January 1 and April 1 each year). The real cost difference emerges in licensing: PLLCs must comply with their profession's Georgia licensing statute, which may require additional permits, insurance, or regulatory fees that standard LLCs don't face. For example, a law PLLC must satisfy Georgia Bar requirements; an accounting PLLC must meet Georgia Board of Accountancy standards. Standard LLCs avoid these profession-specific costs entirely.
Can I own a PLLC with non-licensed members?
No. O.C.G.A. § 14-11-1107(f)-(g) restricts PLLC ownership to licensed professionals in the regulated field. Your PLLC's ownership structure must satisfy both the Georgia LLC Act and your profession's licensing statute. A standard LLC has no such restriction—you can have any number of members, including foreign owners, with no licensing requirement. This is the defining structural difference between the two entities.
Do LLCs and PLLCs pay different taxes in Georgia?
No. Both are pass-through entities under Georgia law. O.C.G.A. Title 48, Chapter 7 taxes LLC and PLLC income at the owner level at Georgia's flat 5.19% state income tax rate. Single-member entities default to Schedule C (disregarded) for federal purposes; multi-member entities default to Form 1065 (partnership). Both can elect S-corp or C-corp taxation. Self-employment tax applies to both. The tax treatment is identical—the difference is purely structural and compliance-based.
How does liability protection differ between LLC and PLLC in Georgia?
Both structures provide identical liability protection under Georgia law. O.C.G.A. § 14-11-303 protects members from personal liability for LLC debts and obligations. O.C.G.A. § 14-11-1107(f)-(g) extends this same protection to PLLCs. Both entities follow Georgia's charging order rules, which prevent creditors from seizing membership interests directly. The only distinction: PLLCs may carry professional malpractice liability that standard LLCs don't face, depending on your profession's licensing statute.
Which structure should you choose?
Choose a PLLC if you're a licensed professional whose licensing statute permits LLC practice and you want to signal professional status to clients. Choose a standard LLC if you're a general business, if your profession doesn't permit LLC practice, or if you want maximum ownership flexibility. Both offer identical liability protection, cost, and tax treatment in Georgia. Verify your profession's eligibility under O.C.G.A. § 14-11-1107(f)-(g) before filing a PLLC—the Secretary of State will reject your Articles of Organization if your profession doesn't qualify.
Side-by-Side Comparison Table
| Dimension | LLC | PLLC |
|---|---|---|
| Formation Filing Fee | $110.00 | $110.00 |
| Annual Registration Fee | $60.00 | $60.00 |
| Processing Time (Standard) | 7 business days (online) | 7 business days (online) |
| Minimum Members | 1 | 1 (must be licensed) |
| Ownership Restrictions | None | Licensed professionals only per O.C.G.A. § 14-11-1107(f)-(g) |
| Georgia Income Tax Rate | 5.19% (pass-through) | 5.19% (pass-through) |
| Federal Tax Default (Single) | Disregarded (Schedule C) | Disregarded (Schedule C) |
| Federal Tax Default (Multi) | Partnership (Form 1065) | Partnership (Form 1065) |
| Liability Protection | Yes (O.C.G.A. § 14-11-303) | Yes (O.C.G.A. § 14-11-303) |
| Management Flexibility | Member-managed or manager-managed | Member-managed or manager-managed |
| Registered Agent Required | Yes (Georgia resident or authorized entity) | Yes (Georgia resident or authorized entity) |
| Operating Agreement Required | No (but recommended) | No (but recommended) |
| Professional Licensing Required | No | Yes (profession-specific) |
| Eligible Professions | All | Law, accounting, medicine, engineering, etc. (per licensing statute) |
| Transferability of Ownership | Flexible (per operating agreement) | Restricted (must maintain licensed ownership) |
| Annual Compliance Burden | Low (Annual Registration only) | Moderate (Annual Registration + profession licensing) |
| Late Filing Penalty | $25.00 (after 60-day grace period) | $25.00 (after 60-day grace period) |
| Administrative Dissolution Risk | Yes (if Annual Registration missed) | Yes (if Annual Registration missed) |
Formation Cost and Process
Filing Fees and Documents
Both LLC and PLLC structures in Georgia use identical filing documents and fees. You'll submit Articles of Organization to the Georgia Secretary of State, Corporations Division under O.C.G.A. §§ 14-11-204 to 14-11-206. The standard filing fee is $110.00 for both entity types. Expedited processing options cost $120.00 (two business days), $275.00 (same-day before noon), or $1,200.00 (one-hour paper processing).
| Cost Element | LLC | PLLC |
|---|---|---|
| Filing Fee (Standard) | $110.00 | $110.00 |
| Two-Business-Day Expedited | $120.00 | $120.00 |
| Same-Day Processing (before noon) | $275.00 | $275.00 |
| One-Hour Paper Processing | $1,200.00 | $1,200.00 |
| Document Type | Articles of Organization | Articles of Organization |
| Filing Authority | Georgia Secretary of State | Georgia Secretary of State |
| Statute | O.C.G.A. §§ 14-11-204 to 14-11-206 | O.C.G.A. § 14-11-1107(f)-(g) |
Winner for this dimension: Tie — identical filing costs apply to both.
Processing Timeline
You can file online through https://ecorp.sos.ga.gov/Account for both entity types. Standard online processing takes approximately 7 business days. Paper filings submitted online process in 10-14 business days, while mailed paper filings take about 15 business days from receipt. No processing-time distinction exists between LLC and PLLC formation.
Winner for this dimension: Tie — identical processing timelines.
Name Reservation and Availability
You can reserve a business name for 30 days at a cost of $35.00 before filing either entity type. Both LLC and PLLC names must include the designator "Limited Liability Company," "LLC," or "L.L.C." per Georgia SOS Name Availability Standards (Ga. Comp. R. & Regs. 590-7-2). Your name must be distinguishable upon the Georgia Secretary of State's records from other filed corporations, LLCs, and limited partnerships. Search available names at https://ecorp.sos.ga.gov/BusinessSearch.
Both entity types cannot use restricted words including Bank, Banc, Banque, Banker, Banking Company, Credit Union, Savings & Loan, Trust, Trust Company, College, or University.
Winner for this dimension: Tie — identical naming rules and costs.
Organizer and Ownership Requirements
One or more organizers may form either an LLC or PLLC under Georgia law. A member, manager, organizer, or authorized attorney-in-fact may sign filings for both entity types. The critical distinction: PLLC ownership is restricted to licensed professionals in regulated professions whose Georgia licensing statutes permit practice through a limited liability company and satisfy O.C.G.A. § 14-11-1107(f)-(g). Standard LLCs have no professional restrictions.
You must identify each organizer's name and address in your Articles of Organization filing for both structures.
Winner for this dimension: LLC — no professional ownership restrictions.
Registered Agent Requirements
Both LLC and PLLC require a registered agent with a physical Georgia street address where service can be made in person under O.C.G.A. §§ 14-11-209 and 14-11-703. Your registered agent must be either a Georgia resident individual or a business entity authorized to do business in Georgia. A member can serve as registered agent for both entity types. Changing your registered agent costs $30.00 for both structures via Amended Annual Registration.
Winner for this dimension: Tie — identical agent requirements.
Operating Agreement
Neither LLC nor PLLC requires a written operating agreement as part of your state filing under O.C.G.A. Title 14, Chapter 11. Georgia's LLC Act and