Full question:
I am registered certified public accountant in Illinois (not a licensed certified public accountant who can provide attest services and sign financial statements) I want to form a LLC because I bought a tax franchise. I may also offer accounting services like bookkeeping, etc. Should I form a LLC or PLLC in Illinois? Is it ok in that case to just form a LLC?
- Category: LLC
- Date:
- State: Illinois
Answer:
If you wish to have a professional entity, there are professional corporations and professional limited liability companies. They are typically formed to protect individual members from personal liability for the negligent acts of other members or employees not under their direct control. They are often formed by professional businesses such as lawyers, accountants, etc., who are subject to malpractice claims.
One or more individuals each of whom is licensed to perform the same professional service or related professional services in this State may organize a professional corporation by filing articles of incorporation with the Illinois Secretary of State.
According to the definitions in IL statutes, "Professional Service" means any personal service which requires as a condition precedent to the rendering thereof the obtaining of a license from a State agency or from the United States Patent Office or the Internal Revenue Service of the United States Treasury Department. "Professional Service" means any personal service which requires as a condition precedent to the rendering thereof the obtaining of a license from a State agency or from the United States Patent Office or the Internal Revenue Service of the United States Treasury Department. "License" includes a license, certificate of registration or any other evidence of the satisfaction of the requirements of this State, or of the United States Patent Office or the Internal Revenue Service of the United States Treasury Department, for the practice of a professional service. In a professional corporation, shareholders, directors, officers, agents and employees (other than ancillary personnel) must generally be licensed in the same or related profession.
Please see the following IL statute:
805 ILCS 180/1-25
Sec. 1-25. Nature of business. A limited liability company may be formed
for any lawful purpose or business except:
(1) (blank);
(2) insurance unless, for the purpose of carrying on business as a member
of a group including incorporated and individual unincorporated
underwriters, the Director of Insurance finds that the group meets the
requirements of subsection (3) of Section 86 of the Illinois Insurance Code
and the limited liability company, if insolvent, is subject to liquidation
by the Director of Insurance under Article XIII of the Illinois Insurance
Code;
(3) the practice of dentistry unless all the members and managers are
licensed as dentists under the Illinois Dental Practice Act; or
(4) the practice of medicine unless all the managers, if any, are
licensed to practice medicine under the Medical Practice Act of 1987 and
each member is either:
(A) licensed to practice medicine under the
Medical Practice Act of 1987; or
(B) a registered medical corporation or corporations organized pursuant
to the Medical Corporation Act; or
(C) a professional corporation organized pursuant to the Professional
Service Corporation Act of physicians licensed to practice under the
Medical Practice Act of 1987; or
(D) a limited liability company that satisfies the requirements of
subparagraph (A), (B), or (C).
Please see also:
http://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=2274&ChapAct=805%26nbsp%3BILCS%26nbsp%3B10%2F&ChapterID=65&ChapterName=BUSINESS+ORGANIZATIONS&ActName=Professional+Service+Corporation+Act%2E
http://www.business.illinois.gov/startup.cfm
http://www.idfpr.com/dpr/WHO/pa.asp
http://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=2290&ChapAct=805%26nbsp%3BILCS%26nbsp%3B180%2F&ChapterID=65&ChapterName=BUSINESS+ORGANIZATIONS&ActName=Limited+Liability+Company+Act%2E
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.
