---
title: "What Is a Professional Corporation? PC vs PLLC Explained"
description: "A PC or PLLC is the entity form state law lets licensed clinicians practice medicine through. PC vs PLLC, who may own one, and how Cuvo Health uses it."
canonical: "https://cuvo.co/glossary/professional-corporation"
last-updated: "Oct 26, 2026"
---
**Definition:** A professional corporation (PC) or professional limited liability company (PLLC) is a business entity that state law allows to practice a licensed profession such as medicine, with ownership limited to people licensed to render that professional service.

# What is a professional corporation (PC) and a PLLC?

Medicine is practiced through a professional entity, not an ordinary company: a professional corporation, a professional limited liability company, or in some states a professional association, each owned by licensed clinicians. Cuvo Health's providers practice through a physician-owned professional entity that Cuvo maintains for every brand.

Published Oct 26, 2026. Facts reviewed Oct 26, 2026.

A professional corporation (PC) or professional limited liability company (PLLC) is a business entity that state law allows to practice a licensed profession such as medicine, with ownership limited to people licensed to render that service. Florida Statutes section 621.03 defines both: a PC is a corporation organized solely to render a professional service whose shareholders are licensed to render it, and a PLLC is the same rule applied to a limited liability company. Each state decides which form physicians may use, and some add a third, the professional association. On Cuvo Health, providers practice through a physician-owned professional entity inside the MSO structure Cuvo builds and maintains, so the founder needs no medical license.

**At a glance**
- What it is: The entity form a licensed profession may practice through
- Who may own it: Only professionals licensed to render the same service, with state-specific exceptions
- Forms: Professional corporation, PLLC, and in some states a professional association
- Liability: Clinicians stay personally liable for their own negligence (Florida 621.07, for example)
- On Cuvo: A physician-owned professional entity, maintained by Cuvo, holds the practice

**Which professional entity physicians use: four state examples (statute text checked October 26, 2026)**

| State | Form physicians use | Ownership rule |
| --- | --- | --- |
| **California** | Professional medical corporation (Corporations Code 13401(b)) | Shares only to licensed persons (13406(a)); listed licensees such as physician assistants and registered nurses may hold up to 49 percent in total (13401.5) |
| **New York** | Professional service corporation (Business Corporation Law 1503) or medical PLLC | Every member of a medical PLLC must hold a New York medical license (Limited Liability Company Law 1203(a)) |
| **Texas** | Professional association or PLLC | The Texas professional corporation excludes the practice of medicine (Business Organizations Code 301.003(3)); physicians and physician assistants may jointly own a PA or PLLC that physicians control (301.012) |
| **Florida** | Professional corporation or PLLC (chapter 621) | Shareholders or members must be licensed to render the same professional service (621.03) |

## 01. What is the difference between a PC and a PLLC?

The underlying entity. A PC is a corporation with shareholders, directors and officers; a PLLC is a limited liability company with members. Both keep ownership with licensed professionals, and neither shields a clinician from their own malpractice: Florida section 621.07 keeps each professional personally liable for negligent acts committed by that person or by people under their direct supervision. Which form a medical practice may use is set state by state. California Corporations Code section 17701.04(b) lets an LLC render licensed services only where the licensing law authorizes it, and Medical Board of California staff have described an LLC medical practice as prohibited, so California practices use the professional medical corporation.

## 02. Who can own a medical PC or PLLC?

Licensed professionals, under rules that differ in the details. California voids shares issued to anyone unlicensed and lets listed non-physician licensees hold a minority. New York requires every member of a medical PLLC to be licensed to practice medicine in New York. Texas lets physicians and physician assistants form a professional association or PLLC together, but an organizer must be a physician and physicians must control and manage the entity (Business Organizations Code 301.012(a-4)). A founder without a license cannot own any of them.

## 03. Why does a telehealth brand need a professional entity?

Because in corporate practice of medicine states only a professional entity owned by licensed clinicians may employ the providers and hold the practice. The brand's company owns a management services organization instead, and the two are connected by a management services agreement: the friendly PC model.

## 04. Who owns the medical records in a professional corporation?

The medical charts belong to the treating professional corporation and its licensed clinicians, as HIPAA and state law require. On Cuvo, the brand owns everything else of value: the patient relationship, the customer list and every business record, from orders and subscriptions to invoices and revenue, all exportable at any time.

## Frequently asked questions

**Q: What is a professional corporation?**

A: It is a corporation organized to practice a licensed profession, with shares limited to professionals licensed to render that service. On Cuvo, providers practice through a physician-owned professional entity that Cuvo maintains for every brand.

**Q: What is a PLLC?**

A: A professional limited liability company is an LLC organized to render a licensed professional service, with members licensed to render it; New York, for example, requires every member of a medical PLLC to hold a New York medical license. On Cuvo Health, the brand never forms one because the professional entity is already in place.

**Q: PC vs PLLC: which is better for a medical practice?**

A: The state usually decides: California physicians use a professional medical corporation, and Texas physicians use a professional association or a PLLC because the Texas professional corporation excludes medicine. Cuvo Health removes the choice for a brand by supplying the physician-owned professional entity.

**Q: Can a non-physician own a medical PC?**

A: No. Professional entity statutes limit ownership to licensed professionals, and a non-physician founder owns a management services organization instead. On Cuvo, the founder owns the brand and the business while Cuvo maintains the physician-owned entity.

**Q: PLLC vs LLC: what is the difference?**

A: An ordinary LLC can be owned by anyone, while a PLLC is organized to practice a licensed profession and is owned by licensed professionals. On Cuvo Health, the brand keeps its business in its own company, and the clinical practice sits in the professional entity Cuvo maintains.

**Related pages**

- [Friendly PC](/glossary/friendly-pc): How a physician-owned PC works with a lay-owned MSO
- [Corporate practice of medicine (CPOM)](/glossary/corporate-practice-of-medicine): Why medicine needs a professional entity
- [Corporate practice of medicine states](/compliance/corporate-practice-of-medicine-states): The 2026 list, state by state
- [Who owns the patients and data in white label telehealth?](/blog/who-owns-the-patients-and-data-on-a-white-label-telehealth-platform): Charts, business records and exports
- [Start a virtual clinic without a medical license](/blog/start-a-virtual-clinic-without-a-medical-license): Forming the entities, step by step

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