How to form an LLC in Illinois
Limited liability companies (LLCs) are a popular business structure for small business owners in Illinois. LLCs offer the limited liability protection of a corporation with the flexibility and simplicity of a partnership.
To form an LLC in Illinois, you must follow these steps:
- Choose a name for your LLC. Your LLC name must be unique and distinguishable from the names of other registered businesses in Illinois. You can search for available business names on the Illinois Secretary of State website.
- Choose a registered agent. A registered agent is a person or business entity who agrees to receive legal notices and service of process on behalf of your LLC. The registered agent must have a physical address in Illinois.
- File Articles of Organization. The Articles of Organization is a legal document that formally creates your LLC. You can file your Articles of Organization online or by mail. The filing fee is $150.
- Create an Operating Agreement. An Operating Agreement is not required by law in Illinois, but it is highly recommended. An Operating Agreement is an internal document that outlines the ownership structure, management structure, and operating procedures of your LLC.
- Obtain an Employer Identification Number (EIN). An EIN is a nine-digit number that is used to identify your business for tax purposes. You can apply for an EIN online or by mail for free.
Once you have completed these steps, your LLC will be officially formed and ready to do business in Illinois.
Here are some additional tips for forming an LLC in Illinois:
- Make sure your LLC name is available before you file your Articles of Organization.
- Choose a registered agent who is reliable and available during regular business hours.
- Carefully draft your Operating Agreement to avoid future disputes among the LLC members.
- Obtain an EIN even if you do not have any employees.
- Register your LLC with the Illinois Department of Revenue to pay Illinois business taxes.
If you have any questions about forming an LLC in Illinois, you can contact the Illinois Secretary of State or an attorney.