Legal Counsel for Converting Illinois Limited Liability Companies into Professional Limited Liability Companies (PLLCs)
Licensed professionals occasionally discover that a business originally formed as an LLC should have been organized as a Professional Limited Liability Company (PLLC) to comply with Illinois licensing requirements. Linnemeyer Law assists clients with converting existing LLCs to PLLCs, including preparation of amendment filings and coordination of required registration with the Illinois Department of Financial and Professional Regulation (IDFPR).
In most cases, the conversion process is straightforward and can be completed without forming a new entity.
Flat Fee PLLC Conversion
Most PLLCs
$600 + Filing Fees
Includes:
-Articles of Amendment
-IDFPR Registration
-Registered Agent Service
-Expedited Service Available
LLC to PLLC Conversion Process
Converting an Illinois LLC to a PLLC generally requires filing Articles of Amendment with the Illinois Secretary of State that satisfy the requirements for an Illinois PLLC, registering the PLLC with the IDFPR, and preparing a new Operating Agreement for the PLLC. Linnemeyer Law assists clients with this process to ensure the entity is properly structured and compliant with Illinois law.
Flat-Fee PLLC Conversion Services
Linnemeyer Law offers Flat‑Fee PLLC Conversion for licensed professionals who previously formed their businesses as Illinois LLCs.
Our Flat Fee PLLC Conversion includes:
- Initial consultation
- Preparation and filing of Articles of Amendment
- Registration of PLLC with IDFPR
- Operating agreement
- Registered agent services, if requested (No additional charge for 5 years)
- Expedited services available
Our flat fee for most PLLC conversions is $600 + Filing Fees.
Frequently Asked Questions
These are our most commonly asked questions about PLLC conversions.
How long does it take to convert an LLC to a PLLC?
Approximately 2-3 weeks. After the Articles of Amendment are submitted to the Secretary of State, a non-expedited service request will receive a response within 10 days of the submission. Expedited service requests are available for an additional cost and receive responses within 24 hours, excluding weekends and holidays. Registration with the IDFPR can take between one and four weeks, depending on the type of application submitted and IDFPR processing times.
Does a PLLC need an operating agreement?
An Operating Agreement is not required, but it is recommended. If you are a multi-member PLLC, an operating agreement is beneficial because it will help you establish the ownership and management rights of the members. It is recommended that single-member PLLCs have an operating agreement as well, for banking purposes and to serve as documentary evidence that the PLLC is being operated separately from the individual owner.
What filing fees are associated with forming a PLLC in Illinois?
You will need to pay a filing fee to the Illinois Secretary of State. This costs $150. There are additional filing fees of $155 for expedited services. The standard PLLC application filed with the IDFPR is $50. Professionals that provide services in real estate, accounting, design professional services, detective/security-related services, and beauty, barbering or cosmetology services have separate applications with different filing fees. Please contact Linnemeyer Law for more information on filing fees for your PLLC.
Is it necessary to form a PLLC for your business?
If your business provides services licensed by the IDFPR, it is highly recommended that you form a PLLC (though not required). Setting up a PLLC will provide you with limited liability protection. Except for professional malpractice claims, a PLLC owner is not personally liable for the debts and obligations of the PLLC.
Who can be a member/owner of a PLLC?
If you are a licensed professional, you can be a member/owner of a PLLC. See the full list of licensed professionals here. A PLLC that provides professional services requiring a license from the IDFPR must have those services performed only by managers, members, agents, or employees who are properly licensed or legally allowed to provide them in Illinois. This ensures your business stays compliant and operates safely.
What is the tax classification of a PLLC?
A PLLC can be taxed in different ways: as a disregarded entity, a partnership, an S-Corporation, or a C-Corporation. By default, a single-member PLLC is taxed as a disregarded entity. This means the PLLC does not file its own tax return – its income and losses are reported on the owner’s personal tax return. A PLLC with multiple members is taxed as a partnership. In that case, the PLLC files an IRS Form 1065 partnership tax return and gives each member a Schedule K-1, which shows their share of income, credits, and deductions. Each member then reports their share on their personal tax return (Form 1040 and Schedule E). Both single-member and multiple-member PLLCs can choose to be taxed as an S-Corporation or C-Corporation by filing IRS Form 2553 or 8832. Choosing this does not change the PLLC’s legal status—it still functions as a PLLC. A PLLC taxed as an S-Corporation files IRS Form 1120S, and one taxed as a C-Corporation files IRS Form 1120.