Q: I have been interested in changing my business from an LLC to a Professional Limited Liability Company in the state of Illinois. Can you help?
Thank you to Jake from Bristlecone Therapy, LLC for that great question! Yes, you can convert your Illinois LLC to a PLLC, and if your LLC offers professional services, you need to. Prior to 2018, Illinois allowed licensed professionals (lawyers, doctors, dentists, etc.) to register their business as either a limited liability company (LLC) or a professional limited liability company (PLLC). That all changed thanks to Senate Bill 3398, which required licensed professionals to register their business as a PLLC instead of an LLC. The bill also permitted LLCs to convert to PLLCs and avoid new filing fees. To convert your Illinois LLC to a PLLC, you’ll need to file Articles of Amendment with the Illinois Secretary of State. We’ll show you how.
What is a PLLC?
A PLLC is a state-level legal business structure that offers asset protection for business owners who engage in licensed occupations, such as lawyers, doctors, engineers, accountants, and other licensed professionals, PLLCs are similar to LLCs in that they protect the personal assets of their members in case of bankruptcy or a lawsuit. PLLCs do not protect members from their own negligent actions. In most cases, all members of an Illinois PLLC must all be licensed for the business they engage in.
Need to register an Illinois PLLC from scratch? Check out our guide: Forming a PLLC in Illinois.
Why do I need a PLLC?
For starters, if you are looking to form an LLC based around offering professional services like engineering or accounting, Illinois law requires that you form a PLLC. Beyond that, PLLCs protect individual members from the bad actions of the others. For instance, if a doctor in a PLLC is sued for malpractice, the lawsuit won’t be leveled against the other members of the business.
How do I convert my LLC to a PLLC in Illinois?
In order to convert your Illinois LLC to a PLLC, you’ll need to print out and complete the Illinois Limited Liability Company Act Articles of Amendment. Illinois does not offer online LLC to PLLC conversion filings. To complete your articles you’ll need follow these steps:
- Step one: Include the LLC’s original name as it was registered with the state.
- Step two: Affirm the effective date, either immediately or at a later date no more than 30 days in the future.
- Step three: Affirm the your purpose for the amendment is “Change in the Limited Liability Company’s name (give new name below)” by checking box “e.”
- Step four: Check box “h,” and then under additional information write that “the purpose of the company is to provide (state the professional service being provided).
- Step five: Write new name of the PLLC to complete the conversion from an LLC.
Note: Illinois PLLCs must contain the term “Professional Limited Liability Company,” “PLLC,” or P.L.L.C. in their names.
Is there a fee to convert my LLC to a PLLC?
There is no fee to convert your LLC to a PLLC in Illinois if the original purpose clause on your LLC’s Articles of Organization was specific to the profession and was not a general statement. For example, if you formed an LLC for your dental business and stated on section 5 that you were forming the LLC to provide dental services, the $50 filing fee to convert your LLC will be waived. If instead you wrote that the purpose of your dental business was to engage in general business activities, you’ll be on the hook for the $50 filing fee.
How long will it take for the Secretary of State’s office to process the amendment?
Processing takes about 10 days. You’ll receive an email acknowledging receipt of the amendment by the Secretary of State, along with a link to view the filed document.