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What are the steps involved in forming a limited liability company (LLC) in Illinois?

Picture of Chris Battis By   ·  1 minute read

To form a limited liability company (LLC) in Illinois, the following steps must be taken:

  1. Choose a name for the LLC: The name must be unique and must include the words "Limited Liability Company" or "LLC."
  2. Appoint a Registered Agent: The Registered Agent is a person or entity that agrees to receive legal documents and other official mail on behalf of the LLC.
  3. File Articles of Organization: This is the formal document that creates the LLC and must be filed with the Illinois Secretary of State. The Articles of Organization must include the name of the LLC, the Registered Agent, and the names of the LLC's members or managers.
  4. Prepare an Operating Agreement: Although not required by law, an Operating Agreement is a legal document that sets out the rules and ownership structure of the LLC. All members of the LLC should sign the Operating Agreement.
  5. Obtain Necessary Licenses and Permits: Depending on the nature of the LLC's business, it may need to obtain certain licenses or permits from the state or local government.
  6. Register for Taxes: The LLC must obtain a Federal Employer Identification Number (EIN) from the IRS, and register for state and local taxes if necessary.

Potential limitations or exceptions to the above steps may exist depending on the specific circumstances of the LLC. For example, if one or more of the LLC's members are professionals like attorneys or doctors, there may be additional requirements or restrictions. It is essential to consult with a licensed attorney for guidance on these issues.

Further action may be necessary if the LLC intends to issue stocks or bring on investors, apply for certain types of loans, or add or remove members. Again, it is imperative to consult with a licensed attorney to ensure that all legal requirements are met.

In summary, to form a limited liability company (LLC) in Illinois, the LLC must:

  • Have a unique name
  • Appoint a Registered Agent
  • File Articles of Organization
  • Prepare an Operating Agreement
  • Obtain necessary licenses and permits
  • Register for Taxes

However, it is essential to consult with a licensed attorney to ensure that all legal requirements are met and any potential limitations or exceptions are addressed.