Limited Liability Companies (LLC)
Can a chiropractic physician form a limited liability company (LLC) for his or her practice?
Editor’s Note: As with any business structure, the Illinois Chiropractic Society strongly urges doctors to obtain specific legal counsel regarding business structures. The following is designed to provide general information to educate our members.
Physicians licensed under the MPA may organize a specific type of limited liability company called a “professional limited liability company (PLLC) to practice medicine (including chiropractic medicine) when all managers are licensed physicians (including chiropractic physicians), and all members are either licensed physicians, or physician entities that are properly 100% owned and managed by physicians licensed under the Medical Practice Act.
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In addition, the PLLC law (like the Professional Service Corporation Act) allows co-ownership by licensed providers of medicine and chiropractic medicine; podiatry; dentistry; and optometry. Any of the listed professional services may be combined and offered within a single professional limited liability company, provided that each professional service is offered only by persons licensed to provide that professional service and all managers and members are licensed in at least one of the professional services offered by the PLLC. Thus, the PLLC offers an alternative business form to individuals who wish to co-own and render multiple related services but want tax treatment as an LLC instead of a corporation.
A PLLC is created by filing Articles of Organization with the Secretary of State. As with medical and professional service corporations, a PLLC must separately register with the IDFPR. The PLLC is required to file a separate application for each location at which it will conduct business, and the IDFPR will issue a certificate for each. The certificate of registration must be conspicuously posted upon the premises to which it is applicable, and the limited liability company shall have only those offices which are designated by street address in the articles of organization, or as changed by amendment.
Application for registration is made in writing to the IDFPR on its own form, which may be found on the IDFPR website at www.idfpr.com. On the list of professions, click Professional Limited Liability Company for all forms and information. The fee is $50. All Professional Limited Liability Company registrations expire January 1 on a three‐year renewal cycle as of 1/1/2019, regardless of the date on which the registration was issued by the IDFPR. Therefore, renewals were due as of 1/1/2022 and will required additional renewals every three years thereafter. The rate is $40 per renewal. For a detailed description of professional limited liability companies and other available physician office business structures, click here.
