How to Create a Professional Group (PC/PLLC)
What is a professional group?
- A PC is a professional corporation
- A PLLC is a professional limited liability company
Once a PC or PLLC is approved by ADRE for a licensee, the employing broker may then pay commission to licensees through that professional group. A professional group may not have a ficticious name or be used for advertising purposes.
Who cannot have a professional group?
- Self employed brokers, elgible licensees and inactive licensees
What is the difference between an LLC and a PLLC?
A PLLC is an LLC organized under Chapter 7 of Title 29 of the Arizona Revised Statutes for the purpose of providing one or more categories of service that may be lawfully rendered only by a person licensed, or otherwise authorized by a licensing authority in Arizona to render the service.
The PLLC specifies that, in those cases where only a person licensed or otherwise authorized by an Arizona licensing authority, wishes to render one or more categories of service, the licensee(s) may do so only as a PLLC. Remember, all compensation must be paid through the Employing Broker.
General rules and regulations governing an LLC may apply to a PLLC. (A.R.S. 29-4104).
Step One:
A PLLC is formed using forms available from the Arizona Corporation Commission (ACC) at www.azcc.gov. Note that there are very specific requirements that must be met before establishing a PC/PLLC and submitting the License application.
- The name of the PC or PLLC must be the licensee's legal name (John Smith PLLC or Smith PLLC). A ficticious name cannot be approved. If filing a joint PC or PLLC for multiple licensees, ensure that the legal names of both licensees are named (John Smith and Jane Smith PLLC or Smith and Smith PLLC)
- The "Professional Services" in the Articles must read "Real Estate" or "Real Estate Services".
- Only the licensee(s) can be listed as members/managers (PLLC) or officers (PC)
Step Two:
To apply for a PC/PLLC with ADRE complete the Professional Corporation (PC) or a Professional Limited Liability Corporation (PLLC) Application/Change Form. Make sure that you or any professional assisting you follows the ADRE guidelines and instructions.
Step Three:
Please submit your application as one merged PDF document on your device and then upload to ADRE through "Add a PC/PLLC" in your Licensee Login
What if I have already formed an LLC but need to change to PLLC?
- If you are seeking to change an LLC to a PLLC, you can amend your LLC Articles of Organization with the Arizona Corporation Commission. As a minimum, the name must be amended to substitute PLLC for LLC. There may be additional items to amend depending on how the entity was set up.
- After filing the Articles of Amendment, submit the completed Professional Corporation (PC) or a Professional Limited Liability Corporation (PLLC) Application/Change Form and all required documents.
- For any questions concerning processes and forms, see the Arizona Corporation Commission website and/or consult professional advice.
