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What legal steps do I need to take to form a Limited Liability Company (LLC) in Illinois?

Picture of Chris Battis By   ·  1 minute read

To form a limited liability company (LLC) in Illinois, one would need to take the following legal steps:

  1. Choose a name for the LLC: Before registering the LLC, it is important to choose a name that is not already taken by another business. The name must also comply with the Illinois Department of Business Services' naming requirements.
  2. File Articles of Organization: File Articles of Organization with the Illinois Secretary of State. The Articles of Organization must include the LLC's name and address, the purpose of the LLC, the name and address of its registered agent and organizer, and any additional information required by the Illinois Secretary of State. The filing fee for the Articles of Organization is $150.
  3. Obtain an EIN Number: An EIN number is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to identify a business entity. It is necessary for opening a business bank account, hiring employees, and filing taxes. LLCs are generally required to obtain an EIN number unless there are no employees and the LLC is a single-member LLC.
  4. Draft an Operating Agreement: Although not required by Illinois law, having an operating agreement is highly recommended as it outlines the ownership structure, management, and distribution of profits and losses. This document is useful for resolving internal disputes and solidifying the LLC's legal standing.
  5. Obtain Licenses and Permits: Depending on the nature of the LLC's business, certain licenses and permits may be required from the state and local government. For example, a restaurant would need a food service permit, while a construction company would need a building permit.

It is important to note that while forming an LLC limits personal liability for the company's debt and obligations, it does not provide complete protection. There are situations where a court may "pierce the veil" and hold the members of the LLC personally liable for the LLC's actions. Therefore, it is important to follow all legal formalities and maintain proper records for the LLC.

If assistance is needed with any of these steps or if there are additional legal questions or concerns, it is recommended to consult with a licensed attorney.