Requirements for Forming a Limited Liability Company (LLC) in Illinois
In order to form a Limited Liability Company (LLC) in Illinois, there are several requirements that must be met.
Choosing a Valid LLC Name
Firstly, a valid LLC name must be chosen. The name must not be identical or too similar to any other registered business in Illinois. Additionally, the name must contain one of the following: "Limited Liability Company", "LLC", or "L.L.C."
Filing Articles of Organization
Next, the Articles of Organization must be filed with the Illinois Secretary of State. The Articles of Organization must include the name and address of the LLC, the name and address of the registered agent, the purpose of the LLC, and the name and address of each organizer.
Preparing an Operating Agreement
An operating agreement must also be prepared and adopted by the members of the LLC. Although not required by law, it is highly recommended as it establishes how the LLC will be operated, including management structure, member rights and responsibilities, capital contributions and distributions, and voting procedures.
Obtaining Necessary Licenses and Permits
Once these requirements are met, the LLC must obtain any necessary licenses and permits required by the state of Illinois or any local governments where the business operates.
It is important to note that certain professions such as lawyers, doctors, and accountants may have additional requirements to form an LLC in Illinois.
Additionally, forming an LLC does not protect against all legal liability. Certain acts such as fraud, intentional misconduct, or violation of state or federal laws may still expose an LLC and its members to legal action.
In conclusion, formation of an LLC in Illinois requires compliance with state laws and proper documentation. It is recommended to seek the advice of a licensed attorney to ensure all legal requirements are properly met.
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