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
For ADRE each exists in order for an employing broker to pay commission to licensees and cannot be used for advertising purposes.
Who cannot have a professional group?
- Self employed brokers and inactive licensees
What is the difference between an LLC and a PLLC?
A PLLC is an LLC organized under Chapter 4 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. 29-843).
Step One:
Review the instructions listed on the LI-231 about forming a PC or PLLC. Note that there are very specific requirements that must be met before establishing a PC/PLLC and submitting the License application.
Step Two:
A PLLC is formed using forms available from the Arizona Corporation Commission (ACC) at www.azcc.gov.
Step Three:
To apply for a PC/PLLC with ADRE complete the Professional Corporation (PC) or a Professional Limited Liability Corporation (PLLC) License Instructions and Application form (LI-231). Make sure that you or any professional assisting you follows the ADRE guidelines and instructions.
Step Four:
Please submit your application as one merged PDF document on your device and then upload to ADRE.
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. Follow the directions on the form.
- After filing the amended Articles of Organization, another Notice of Filing must be published in a newspaper of general circulation. Submit the completed Professional Corporation (PC) or a Professional Limited Liability Corporation (PLLC) Instructions and Application form (LI-231) and all required documents.
- For any questions concerning processes and forms, see the Arizona Corporation Commission website and/or consult professional advice.
