How To Form an LLC In Illinois
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1. Choose a Name for Your Illinois Limited Liability Company
Check for an Available Name for the LLC in Illinois: When you are making preparations to form an LLC in Illinois, take care to choose a unique name for your company. You can start by searching databases online and searching other records to make sure that the name that you want to use for your LLC is available and not in use by another LLC in Illinois. There is a state business entity database that you can search online at the official website of the Illinois Secretary of State at Illinois LLC.
Reserve a Name for Your Illinois LLC: Reserving a name for your LLC is not required, but if you want to reserve a name before the time that you can file, you can submit a name reservation application to the Illinois Secretary of State. The name reservation application form is available to download online at Illinois LLC. The name that you submit on the application will be reserved in the state of Illinois for a period of 90 days. There is a filing fee of $300.00.
Filing for Trademarks Protection and Doing an LLC Name Search: When you are searching databases and other records in Illinois, you may find that the name that you want to use for your LLC is available in Illinois but in use by a company in another state. There could be certain restrictions on how you use the name that you have chosen for your LLC. You can find useful information about how to choose a name for your LLC here: how to choose a name for your llc.
Illinois LLC Name Requirements: You should remember that in Illinois, the name that you use for your LLC must include the designation "LLC," “L.L.C.,” or "Limited Liability Company." You should also remember that the term “LLC” stands for “Limited Liability Company,” and not “LLC Corporation, “Limited Liability Corporation,” or anything related to a corporation. LLCs are organized differently than corporations and are a distinct type of business entity.
2. Find a Registered Agent in Illinois
When you are making preparations to form your Illinois LLC, you must select a registered agent that will act as an agent for service of process and will receive all tax documents, legal notices, and other official notices for your LLC. You might consider using a corporate service company that provides registered agent services to LLCs. Corporate service companies generally charge a fee of between about $75.00 and $150.00 for these kinds of services.
3. File Articles of Organization with the Illinois Secretary of State
Minimum Requirements for the Articles of Organization: The Articles of Organization that you file for your Illinois LLC must contain the name and purpose of your LLC, the address of your principal place of business, the name and address of your registered agent, and the name and address of the organizer. You will also be asked indicate whether the LLC will be managed by a manager of by the members of the LLC. The Articles of Organization will need to be signed by the organizer or organizers. You can download a form for this document online at Illinois LLC.
Other Illinois Legal Provisions: When you are creating Articles of Organization for your LLC, consider including additional clauses besides the minimum requirements. Consult a lawyer for help when you are creating your Articles of Organization so that you can include clauses that are important for your company.
Where to Submit the Articles of Organization for Filing: You should submit your Articles of Organization to the Department of Business Services, Limited Liability Division, 501 S. Second St., Rm. 351, Springfield, IL 62756.
Filing Fee: The fee to file Articles of Organization in Illinois is $500.00.
4. Form an Illinois Limited Liability Company Agreement (Operating Agreement)
After you form your Illinois LLC by filing Articles of Organization, you must create an LLC Agreement that will govern all aspects of your LLC as well as actions between the members of the LLC. The LLC Agreement must be signed by each member of your LLC. LLC Agreement come in all shapes and sizes. The details of the LLC Agreement will vary depending on a variety of factors, such as whether there will be one owner or multiple owners, the amount of money each owner is making as a contribution of capital to the company, who will manage the day to day operations of the company, whether the agreement will include any buy-sell provisions, or restrictions on voting, as well as the primary purpose of the LLC’s business. For example, an LLC can be used as a holding company for real estate, or to operate a manufacturing business. Consult a lawyer and an accountant for help in creating your LLC Agreement so that you can make sure to comply with all state requirements and federal tax laws.
After you form your Illinois LLC you should prepare to make securities filings, obtain an EIN from the IRS, and obtain a business license in the locale where you will be conducting business. There are corporate services companies can make these kinds of filings for you for a fee. You can find information on how to get a business license in your city through our online guide at http://www.cityapplications.com/business-licenses.html.
5. Qualify your Illinois LLC to Do Business in Other States
You must find out how to register or qualify your LLC to do business in your home state if your main office is located outside the state of Illinois. In most states, LLCs are required to register or qualify in order to do business there. You will most likely be required to pay taxes in your home state when you do business in other states. You can find information on how to qualify your LLC to do business in other states at [Qualifying to Do Business in Other States].
6. Make Annual Filings and Pay Annual Taxes in Illinois
The state of Illinois requires an annual report for all LLCs. The annual report asks for updated information about your LLC. You can download a form for this report at Illinois LLC. The filing fee is $250.00. You can also file online at Illinois LLC.
You will also need to file a tax report for your LLC and pay taxes every year once you have formed your LLC in the state of Illinois. You can visit the official website of the Illinois Department of Revenue at Illinois LLC to find information and download tax forms.
It can be complicated to form an LLC, especially if there are several people involved. Consult an accountant and an attorney for help during this process so that you can be confident that an LLC is right for your company and that all your paperwork is being processed correctly.This article is for informational purposes and does not constitute legal, financial or tax advice. This information is derived from various sources and should not be relied on as an official source of information. All information should be independently verified. You should consult a legal or accounting professional before incorporating your business.
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