{"id":4909,"date":"2021-09-10T14:45:44","date_gmt":"2021-09-10T19:45:44","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/incorporation-and-legal-structures\/what-is-an-llc-license.html"},"modified":"2025-10-29T00:34:00","modified_gmt":"2025-10-29T05:34:00","slug":"what-is-an-llc-license","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/what-is-an-llc-license.html","title":{"rendered":"What Is an LLC License?"},"content":{"rendered":"\n<div class=\"fl-sectionWithSidebar fl-container fl-flex fl-flex-wrap fl-gap30  wp-container-core-columns-is-layout-8f761849 fl-sectionWithSidebar fl-container fl-flex fl-flex-wrap fl-gap30\">\n<div class=\"fl-section-main fl-page-articles fl-section-main fl-section-main-full-width\"><h1 class=\"fl-no-margin-top\">What Is an LLC License?<\/h1>\n\n<section class=\"fl-gutenberg-byline\">\n    <div class=\"fl-gutenberg-byline-content\">\n                    By <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/tim-kelly-j-d\/\">Tim Kelly, J.D.<\/a> | Legally reviewed by <a\n                href=\"https:\/\/www.findlaw.com\/company\/our-team\/catherine-hodder-esq\/\">Catherine Hodder, Esq.<\/a>\n                | Last updated\n        <time>\n                            October 29, 2025\n                    <\/time>\n    <\/div>\n\n            <div class=\"fl-gutenberg-byline-editorial-note fl-text-sm\">\n            <p>Editorial Note: We earn a commission from affiliate partner links on FindLaw. Commissions do not affect the editorial integrity of our legal content.<\/p>\n\n        <\/div>\n    \n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-legally-reviewed\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Legally Reviewed\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>This article has been written and reviewed for legal accuracy, clarity, and style by <a href=\"https:\/\/www.findlaw.com\/company\/our-team.html\">FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with <a href=\"https:\/\/www.findlaw.com\/company\/company-history\/editorial-policy.html\">our editorial standards<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n\n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-fast-checked\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Fact-Checked\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>The last updated date refers to the last time this article was reviewed by FindLaw or one of our <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/contributing-authors.html\">contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please <a href=\"https:\/\/lawyers.findlaw.com\/?fli=bylinelink\" target=\"_blank\" rel=\"noopener\">contact an attorney in your area<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n<\/section>\n\n\n    <div class=\"fl-callout-text article-blockquote\">\n        <p>A <span data-term-id=\"54223238\">limited liability company<\/span> (LLC) does not require a specific \u201c<span data-term-id=\"54223266\">LLC license<\/span>\u201d to operate. However, an LLC must register its <span data-term-id=\"54223241\">business entity<\/span> with the <span data-term-id=\"54223250\">secretary of state<\/span>. While most LLCs need this registration, some states require special licenses for professional LLCs (PLLCs) formed by doctors or lawyers.<\/p>\n\n    <\/div>\n\n\n\n<p>In most cases, you will not need to obtain a license for a <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/llcs.html\"><span data-term-id=\"54223238\">limited liability company<\/span> (LLC)<\/a>. LLCs are <span data-term-id=\"54223241\">business entities<\/span> that have been registered with the state by filing <span data-term-id=\"54223242\">articles of organization<\/span>. Casually, some <span data-term-id=\"54223246\">business owners<\/span> might refer to their document filings with the state as an &#8220;<span data-term-id=\"54223266\">LLC license<\/span>.&#8221; However, while their LLC is indeed organized and registered with the state, &#8220;<span data-term-id=\"54223266\">LLC license<\/span>&#8221; is often just a common phrase, not a state-issued license in the technical sense.<\/p>\n<p>There are, however, some instances where states do require licensure for a <a href=\"https:\/\/legalzoomcominc.pxf.io\/c\/4851649\/2115288\/26746?subId1=what-is-an-llc-license-%20wct2509242057050zpca&amp;auto-aff-llc\" target=\"_blank\" rel=\"noopener\"><span data-term-id=\"54223238\">limited liability company<\/span><\/a>. LLCs operating in more regulated industries such as accounting, legal, or medical services, might need to apply for state-issued licenses in their field of practice. Here, owners form what is known as a professional <span data-term-id=\"54223238\">limited liability company<\/span> (PLLC). Both entities provide some <span data-term-id=\"54223247\">liability protection<\/span> for <span data-term-id=\"54223258\">business debts<\/span>. The critical difference between LLCs and PLLCs is that members of PLLCs can be sued for professional malpractice.<\/p>\n<p><b><i>Form your LLC with confidence.\u202f<a href=\"https:\/\/legalzoomcominc.pxf.io\/c\/4851649\/2115288\/26746?subId1=what-is-an-llc-license--in-content\" rel=\"sponsored noopener\" data-cta=\"Biz LZ - LATL Callout\" data-cta-url=\"legalzoom.com\" target=\"_blank\">Our trusted partner LegalZoom has packages starting at $0 + filing fees.<\/a><\/i><\/b><\/p>\n<h3>Key Takeaways<\/h3>\n<ul>\n<li>\n<p>LLCs typically do not require a license to organize.<\/p>\n<\/li>\n<li>\n<p>Sometimes <span data-term-id=\"54223246\">business owners<\/span> refer to an LLC\u2019s organizational process as a &#8220;license,&#8221; but this is only in the casual sense.<\/p>\n<\/li>\n<li>\n<p>Organizing an LLC involves drafting an operating agreement and <span data-term-id=\"54223242\">articles of organization<\/span>.<\/p>\n<\/li>\n<li>\n<p>Licensed professionals (such as accountants, doctors, and lawyers) seeking to organize their entity should do so as PLLCs.<\/p>\n<\/li>\n<li>\n<p>PLLCs generally require malpractice insurance, but they also protect owners\u2019 <span data-term-id=\"54223274\">personal assets<\/span> from the malpractice of other owners.<\/p>\n<\/li>\n<\/ul>\n<h2>Organizing as an LLC<\/h2>\n<p><a href=\"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/limited-liability-corporation-faq.html\">LLCs, or <span data-term-id=\"54223238\">limited liability companies<\/span><\/a>, are established in a process called &#8220;organization.&#8221; To organize, <span data-term-id=\"54223246\">business owners<\/span> draft an operating agreement and <span data-term-id=\"54223242\">articles of organization<\/span>. An operating agreement lays out your <span data-term-id=\"54223239\">business structure<\/span> and does not need to be filed with the state. <span data-term-id=\"54223242\">Articles of organization<\/span> provide details of the business to a state governmental body (typically the <span data-term-id=\"54223250\">secretary of state<\/span>).<\/p>\n<p>Details required within the <span data-term-id=\"54223242\">articles of organization<\/span> include the name of the business, the address where its office is located, and the name of a <span data-term-id=\"54223252\">registered agent<\/span>. Owners pay a <span data-term-id=\"54223251\">filing fee<\/span> to register their <span data-term-id=\"54223241\">business entity<\/span> as an <a href=\"https:\/\/legalzoomcominc.pxf.io\/c\/4851649\/2115288\/26746?subId1=what-is-an-llc-license-%20wct250924205705sk9p6&amp;auto-aff-llc\" target=\"_blank\" rel=\"noopener\">LLC<\/a>.<\/p>\n<p>A few things happen when you\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/starting-a-limited-liability-company-llc-checklist.html\">organize your LLC with your state<\/a>. First, your LLC will be registered as a separate <span data-term-id=\"54223248\">legal entity<\/span>, limiting your <span data-term-id=\"54223245\">personal liability<\/span> from any <span data-term-id=\"54223258\">business debts<\/span> or obligations. This is different from a <span data-term-id=\"54223243\">sole proprietorship<\/span>, which offers no such protection. Next, you will be able to apply for a <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-taxes\/employer-identification-number-ein-faq.html\">tax identification number<\/a> with the federal government, which will let you open a <span data-term-id=\"54223263\">business bank account<\/span>.<\/p>\n<p>While some <span data-term-id=\"54223269\">small <\/span><span data-term-id=\"54223246\">business owners<\/span> might use the term &#8220;license&#8221; to describe the above process, this isn\u2019t always accurate and is often used as a colloquial term. On the other hand, <span data-term-id=\"54223246\">business owners<\/span> who are professionally licensed in a particular industry, such as the legal or medical fields, will want to organize as a PLLC.<\/p>\n<p>If you are in a professionally licensed field, it\u2019s recommended you check with your\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/local-businesses-licenses.html\">local small business administration<\/a>\u00a0to determine requirements for PLLCs.<\/p>\n<h2>Understanding the Differences Between LLCs and PLLCs<\/h2>\n<p>The difference can get confusing since LLCs don\u2019t require a <span data-term-id=\"54223284\">professional license<\/span>, but PLLCs do. Here are the key differences:<\/p>\n<ul>\n<li>\n<p>LLCs are great entity structures for <span data-term-id=\"54223269\">small <\/span><span data-term-id=\"54223246\">business owners<\/span> in industries that don\u2019t require any <span data-term-id=\"54223284\">professional license<\/span>.<\/p>\n<\/li>\n<li>\n<p>Alternatively, PLLCs are appropriate <span data-term-id=\"54223239\">business structures<\/span> for professions that do require licenses, such as accounting, medicine, or law.<\/p>\n<\/li>\n<\/ul>\n<p>PLLCs operate similarly to LLCs. However, PLLCs are a <span data-term-id=\"54223244\">type of <\/span><span data-term-id=\"54223239\">business<\/span><span data-term-id=\"54223239\"> structure<\/span> only available to licensed professionals such as doctors, lawyers, or accountants. The critical difference is that PLLCs can be sued for malpractice, requiring owners to obtain malpractice insurance. Under the PLLC structure, owners\u2019 <span data-term-id=\"54223274\">personal assets<\/span> are not at risk for the malpractice of other owners. Organizing a PLLC can be a slightly lengthier process than an LLC. This is because of the added time and steps it takes to verify information regarding your <span data-term-id=\"54223284\">professional license<\/span>.<\/p>\n<h2>When Does an LLC Need a License?<\/h2>\n<p>When an LLC starts <span data-term-id=\"54223249\">doing business<\/span>, it may need to <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/business-licenses-and-permits.html\">apply for a <span data-term-id=\"54223240\">business license<\/span><\/a>. Check with your state, city, or local municipality for their <span data-term-id=\"54223240\">business license<\/span> and permit requirements.<\/p>\n<h2>Seeking Assistance<\/h2>\n<p><span data-term-id=\"54223246\">Business owners<\/span> can face a variety of challenges when just starting. When questions are mounting and time is of the essence, the smartest move you can make for your business is to\u00a0<a href=\"https:\/\/lawyers.findlaw.com\/business-organizations\/?fli=dcta\" target=\"_blank\" rel=\"noopener\">contact a local small business attorney<\/a>. There is no better resource than pragmatic legal counsel catered to the exact needs of you and your business.<\/p>\n<h3><span style=\"color: revert; font-size: revert; font-weight: revert;\">Related Topics<\/span><\/h3>\n<ul>\n<li><a href=\"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/llcs.html\">LLCs<\/a><\/li>\n<li><a href=\"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/limited-liability-corporation-faq.html\">Limited Liability Corporation FAQ<\/a><\/li>\n<li><a href=\"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/forming-an-llc.html\">Forming an LLC<\/a><\/li>\n<li><a href=\"https:\/\/www.findlaw.com\/hirealawyer\/choosing-the-right-lawyer\/professional-malpractice.html\">What is Professional Malpractice?<\/a><\/li>\n<\/ul>\n\n\n<div class=\"was-this-helpful\">\n    <div\n            class=\"was-this-helpful__question-container\"\n            aria-labelledby=\"was-this-helpful__question\"\n            role=\"group\"\n    >\n        <span\n                id=\"was-this-helpful__question\"\n                class=\"was-this-helpful__question fl-text-lg-bold\"\n        >Was this helpful?<\/span>\n        <button\n                class=\"was-this-helpful__button fl-text-sm\"\n                aria-label=\"Yes\"\n                value=\"yes\"\n        >\n            <span class=\"was-this-helpful__button-text fl-text-bold\">Yes<\/span>\n            <i class=\"was-this-helpful__button-icon\">\n                <svg width=\"22\" height=\"22\" viewBox=\"0 0 22 22\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n                    <g id=\"thumbs-up\" clip-path=\"url(#clip0_604_3418)\">\n                        <path id=\"Vector\"\n                              d=\"M6 21H3C2.46957 21 1.96086 20.7893 1.58579 20.4142C1.21071 20.0391 1 19.5304 1 19V12C1 11.4696 1.21071 10.9609 1.58579 10.5858C1.96086 10.2107 2.46957 10 3 10H6M13 8V4C13 3.20435 12.6839 2.44129 12.1213 1.87868C11.5587 1.31607 10.7956 1 10 1L6 10V21H17.28C17.7623 21.0055 18.2304 20.8364 18.5979 20.524C18.9654 20.2116 19.2077 19.7769 19.28 19.3L20.66 10.3C20.7035 10.0134 20.6842 9.72068 20.6033 9.44225C20.5225 9.16382 20.3821 8.90629 20.1919 8.68751C20.0016 8.46873 19.7661 8.29393 19.5016 8.17522C19.2371 8.0565 18.9499 7.99672 18.66 8H13Z\"\n                              stroke=\"#666666\" stroke-width=\"2\" stroke-linecap=\"round\"\n                              stroke-linejoin=\"round\"><\/path>\n                    <\/g>\n                    <defs>\n                        <clipPath id=\"clip0_604_3418\">\n                            <rect width=\"22\" height=\"22\" fill=\"white\"><\/rect>\n                        <\/clipPath>\n                    <\/defs>\n                <\/svg>\n            <\/i>\n        <\/button>\n        <button\n                class=\"was-this-helpful__button fl-text-sm\"\n                aria-label=\"No\"\n                value=\"no\"\n        >\n            <span class=\"was-this-helpful__button-text fl-text-bold\">No<\/span>\n            <i class=\"was-this-helpful__button-icon\">\n                <svg width=\"22\" height=\"22\" viewBox=\"0 0 22 22\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n                    <g id=\"thumbs-down\" clip-path=\"url(#clip0_604_3423)\">\n                        <path id=\"Vector\"\n                              d=\"M16 0.999995H18.67C19.236 0.989986 19.7859 1.18813 20.2154 1.55681C20.645 1.9255 20.9242 2.43905 21 3V10C20.9242 10.5609 20.645 11.0745 20.2154 11.4432C19.7859 11.8119 19.236 12.01 18.67 12H16M9.00003 14V18C9.00003 18.7956 9.3161 19.5587 9.87871 20.1213C10.4413 20.6839 11.2044 21 12 21L16 12V0.999995H4.72003C4.2377 0.994543 3.76965 1.16359 3.40212 1.47599C3.0346 1.78839 2.79235 2.22309 2.72003 2.7L1.34003 11.7C1.29652 11.9866 1.31586 12.2793 1.39669 12.5577C1.47753 12.8362 1.61793 13.0937 1.80817 13.3125C1.99842 13.5313 2.23395 13.7061 2.49846 13.8248C2.76297 13.9435 3.05012 14.0033 3.34003 14H9.00003Z\"\n                              stroke=\"#666666\" stroke-width=\"2\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/>\n                    <\/g>\n                    <defs>\n                        <clipPath id=\"clip0_604_3423\">\n                            <rect width=\"22\" height=\"22\" fill=\"white\"\/>\n                        <\/clipPath>\n                    <\/defs>\n                <\/svg>\n            <\/i>\n        <\/button>\n    <\/div>\n    <span class=\"was-this-helpful__taken-action fl-text-sm-bold\"><\/span>\n    <div class=\"was-this-helpful__feedback-container\">\n        <div class=\"was-this-helpful__choose-option-message\" role=\"status\">\n            <p class=\"was-this-helpful__choose-option-message-text\"><\/p>\n        <\/div>\n        <form class=\"was-this-helpful__feedback-form\">\n            <div class=\"was-this-helpful__feedback was-this-helpful__feedback--positive\">\n        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sense.<\/p>\n","protected":false},"author":41135,"featured_media":0,"parent":4798,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"app\/Http\/Controllers\/Templates\/ArticleWithBreadcrumbsController.php","meta":{"_acf_changed":false,"_stopmodifiedupdate":true,"_modified_date":"","_autodraft_ids":[],"_cloudinary_featured_overwrite":false,"_sb_is_suggestion_mode":false,"_sb_show_suggestion_boards":false,"_sb_show_comment_boards":false,"_sb_suggestion_history":"","_sb_update_block_changes":"","_is_real_time_mode":false,"_realtime_collaborators":"","footnotes":"","cf_checklist_status":[]},"categories":[2],"tags":[9],"state_laws_tags":[],"flmsa":[],"class_list":["post-4909","page","type-page","status-publish","hentry","category-smallbusiness","tag-aff-llc"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/pages\/4909","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/users\/41135"}],"replies":[{"embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/comments?post=4909"}],"version-history":[{"count":2,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/pages\/4909\/revisions"}],"predecessor-version":[{"id":384971,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/pages\/4909\/revisions\/384971"}],"up":[{"embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/pages\/4798"}],"wp:attachment":[{"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/media?parent=4909"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/categories?post=4909"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/tags?post=4909"},{"taxonomy":"state_laws_tags","embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/state_laws_tags?post=4909"},{"taxonomy":"flmsa","embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/flmsa?post=4909"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}