Flat Fee Conversion of LLC to PLLC
Most PLLCs $600.00 + Costs
Includes:
– Articles of Amendment
– IDFPR Registration
– Operating Agreement
– Registered Agent Service (5 years)
– Expedited Service Available
LLCs that provide professional services licensed by the IDFPR are required to be organized as a PLLC and comply with the Professional Limited Liability Act. A LLC is converted to a PLLC by filing Articles of Amendment with the Illinois Secretary of State, registering the PLLC with the IDFPR and creating necessary company governance documents that contain limitations related to the professional service the PLLC is organized to provide.
Flat fee conversion of Illinois LLCs to PLLCs includes the services listed below:
- Initial Consultation
- Prepare and File Articles of Amendment with correct business purpose
- Prepare Multi-Member or Single-Member Operating Agreement
- Register PLLC with IDFPR
- Registered Agent Service for no additional cost
These flat fees start at $600.00, plus costs, and increase based on the number of members and the complexity of the business structure.
If you are a licensed professional that is regulated by the IDFPR and you need to convert your Illinois LLC to a PLLC, please submit Linnemeyer Law’s PLLC Conversion Intake Form and an attorney will contact you with a quote for the formation of your PLLC.
In addition to the formation of PLLCs, Linnemeyer Law, LLC provides comprehensive legal representation of small and mid-sized businesses. This includes contract review, commercial real estate matters, mergers and acquisitions, venture capital and private equity financing and many other business and legal services.
FREQUENTLY ASKED QUESTIONS:
How long does it take to convert a 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 highly recommended. It is crucial for multi-member PLLCs to have an Operating Agreement to establish the relative ownership and management rights of the members. It is recommended that single-member PLLCs have an Operating Agreement for banking purposes and to serve as documentary evidence that the PLLC is being operated separately from the individual owner.
What are the filing fees associated with converting an LLC to a PLLC?
Standard filing fees are $100.00 The filing fee paid to the Illinois Secretary of State to file the Articles of Amendment is $50.00. There is an additional fee of $100.00 for expedited filing service. The standard PLLC application filed with the IDFPR is $50.00. 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, LLC for more information on filing fees for your PLLC.
Is it necessary to form a PLLC for your business?
You are not required to form a PLLC or Professional Corporation for your business that provides services licensed by the IDFPR, but it is highly recommended. Setting up a PLLC provides limited liability protection for the business owner and the business owner’s assets. Except for professional malpractice claims, a PLLC owner is not personally liable for the debts and obligations of the PLLC.
What is the tax classification of a PLLC?
A PLLC can be taxed as a disregarded entity, a partnership, an S-Corporation or a C-Corporation. By default, a single-member PLLC will be taxed as a disregarded entity for federal and state tax purposes. As a result of being “disregarded," the PLLC does not file a separate tax return. Rather, its income and loss are reported on the tax return filed by the single member. A PLLC with multiple members is taxed as a partnership. A PLLC taxed as a partnership must file an IRS Form 1065 partnership tax return. Additionally, the PLLC must also give each member a Schedule k-1, showing each member’s share of partnership income, credits and deductions. Since a PLLC is a flow-through entity, each member then reports his or her share of income, credits and deductions on their individual 1040 and Schedule E. A single-member PLLC or a multiple-member PLLC may elect to be taxed as an S-Corporation (if it meets certain requirements) or a C-Corporation. This is accomplished by filing an election (form 2553 or 8832) with the IRS. The legal status of a PLLC is not changed by filing an election to be taxed as a Corporation, it continues to function as a PLLC for all other purposes. A PLLC that elects to be taxed as an S-Corporation must file an IRS Form 1120S tax return and a PLLC that elects to be taxed as a C-Corporation must file an IRS Form 1120 tax return.
Who can be a member (owner) of a PLLC?
If the PLLC provides any of the following professional services, then all members and managers must be licensed for the same profession: the practice of dentistry, medicine, social work, clinical professional counseling, professional counseling, veterinary, clinical psychology, and marriage and family therapy.
A PLLC that renders professional services that requires the issuance of a license by the IDFPR can only do so through its managers, members, agents, or employees who are duly licensed or otherwise legally authorized to render such professional services within Illinois.