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What 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, you need to take the following steps:

  1. Choose a Name: Choose a unique name for your LLC and ensure that it is not already in use by another LLC in Illinois. You can check for the availability of names through the Illinois Secretary of State website.
  2. Appoint a Registered Agent: Appoint a registered agent who will accept important legal and tax documents on behalf of the LLC. The registered agent must have a physical address in Illinois.
  3. File Articles of Organization: File the Articles of Organization with the Illinois Secretary of State. The Articles of Organization include the name and address of the LLC, the name and address of the registered agent, and the duration of the LLC.
  4. Draft an Operating Agreement: The Operating Agreement outlines the internal workings of the LLC, including the rights and responsibilities of its members, management structure, and decision-making process.
  5. Apply for an Employer Identification Number (EIN): Apply for an EIN from the Internal Revenue Service (IRS) for tax purposes.
  6. Obtain Necessary Permits and Licenses: Depending on the nature of your business, you may need to obtain additional permits and licenses from the state or local government.
  7. Register with the Department of Revenue: Register with the Illinois Department of Revenue to pay applicable taxes, such as sales tax or withholding tax.

Potential Limitations or Exceptions:

  • If you are a foreign LLC looking to do business in Illinois, you may need to register with the Illinois Secretary of State as a foreign LLC first.
  • Not all types of businesses are eligible to form LLCs. For instance, professional service businesses like law firms or medical practices may be required to form a different type of entity.

Suggestions for Further Action:

  • Consult with an attorney to ensure that your LLC formation is compliant with Illinois laws and regulations.
  • Consider purchasing a business insurance policy to protect your LLC from potential legal disputes and liabilities.

Please note that the above steps and limitations may vary depending on the specific circumstances of your LLC formation. It is always recommended to consult with a licensed attorney for legal advice tailored to your specific situation.