Professional Limited Liability Company (PLLC)
Many Illinois licensed professionals struggle with figuring out what to do when told they need a “PLLC". A PLLC (professional limited liability company) is a legal entity organized to provide professional services by persons licensed by the Illinois Department of Financial and Professional Regulation (IDFPR). In August 2018, the Illinois Professional Limited Liability Act (805 ILCS 185/) and the Illinois Limited Liability Company Act (805 ILCS 180/) were updated to require businesses that provide professional services to be formed as PLLCs. Linnemeyer Law can form your PLLC quickly, professionally and completely.
Flat Fee PLLC Formation
Most PLLCs $900.00 + Filing Fees*
Includes:
– Articles of Organization
– EIN (Employer Identification Number)
– S-Election (if applicable)
– IDFPR Registration
– Operating Agreement
– Registered Agent Service (5 years)
– Expedited Service Available
* Filing fees for most PLLCs are $200
Businesses that provide professional services licensed by the IDFPR are required to be organized as a PLLC and comply with the Professional Limited Liability Act. PLLCs have the same limited liability protection for personal assets and opportunities for tax breaks as other LLCs. However, multi-member PLLC owners are not liable for malpractice committed by their business partners.
Linnemeyer Law offers flat-fee arrangements for formation of PLLCs. These flat fees start at $900.00, plus costs, and includes the services listed below. Linnemeyer Law will form your PLLC quickly, professionally and completely. Linnemeyer Law handles the PLLC formation process from start to finish. The flat fee quoted by Linnemeyer Law will include everything needed to organize (form) your PLLC, prepare critical governance documents for the PLLC and register your PLLC with the IDFPR.
Flat fee formation of PLLCs includes the services listed below:
- Initial Consultation
- Name Availability Search
- Prepare and File Articles of Organization
- Obtain EIN (Employer Identification Number) from the IRS
- Prepare Initial Member and Manager Resolutions
- Prepare Multi-Member or Single-Member Operating Agreement
- Register PLLC with IDFPR
- Registered Agent Service for no additional cost
These flat fees start at $900.00, 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 are considering starting a business, please submit Linnemeyer Law’s PLLC Intake Form and an attorney will contact you with a quote for the formation of your PLLC
Here is our process:
- Complete our PLLC Intake Form
- An attorney will send you an email with a flat fee quote for the formation of your PLLC
- If you want to proceed, we will send you an Engagement Letter and Retainer Agreement. We require a $500.00 retainer, and the balance is paid upon completion
- We prepare and file Articles of Organization to form the PLLC
- We obtain an EIN (Employer Identification Number) for the PLLC so you can open a bank account
- We file an application to register the PLLC with the IDFPR
- We prepare an Operating Agreement for the PLLC
- If requested, we also prepare and file an election for the PLLC to be taxed as an S-Corporation
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 form a PLLC?
After the Articles of Organization 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 four and six weeks, depending on the type of application submitted.
What professions are required to form a PLLC?
All Illinois 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. The IDFPR regulates a variety of healthcare and occupational professionals, including physicians, therapists, cosmetologists, dentists, detectives, accountants, architects and engineers. See the full list here.
Does a PLLC need an Operating Agreement?
An Operating Agreement is not required, but it is 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 forming a PLLC?
The filing fee paid to the Illinois Secretary of State to file the Articles of Organization to for the PLLC is $150.00. 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.
What if a company was originally formed as an LLC (not a PLLC)?
A company that provides services licensed by the IDFPR that was formed as a limited liability company (as opposed to a PLLC) must be converted into a PLLC. This is done by filing Articles of Amendment with the Illinois Secretary of State. Click here for more information about converting your existing LLC to a PLLC – LLC Conversion to 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.
To get started, submit our PLLC Intake Form and an attorney will contact you with a quote for the formation of your PLLC. For questions, or for expedited service, email attorney Jonathan Linnemeyer at jlinnemeyer@linnemeyer law.com or call Linnemeyer Law at 630-332-3600.