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What steps should I 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 follow the following steps:

  1. Choose a Name: Select a unique name for your LLC which includes the phrase "Limited Liability Company" or an abbreviation of "LLC". The name should not be too similar to an existing business name in Illinois.
  2. Appoint a Registered Agent: Appoint a registered agent in Illinois who will receive legal documents on behalf of the LLC. The registered agent must have a physical address in Illinois.
  3. File Articles of Organization: File Articles of Organization with the Illinois Secretary of State's office. The articles should include the name, address, and registered agent of the LLC as well as the names of the LLC's members or managers. The filing fee for Articles of Organization is $150.
  4. Create an Operating Agreement: Although an operating agreement is not required by Illinois law, it is a good idea to create one to document the structure of the LLC, how it will be managed, and the rights and obligations of its members.
  5. Obtain Business Licenses and Permits: Depending on the nature of your business, you may need to obtain business licenses and permits from the state or local government.
  6. Obtain an EIN: Obtain an Employer Identification Number (EIN) from the IRS if the LLC has more than one member, plans to hire employees, or elects to be taxed as a corporation.
  7. Comply with Taxation and Regulatory Requirements: Comply with all taxation and regulatory requirements that are applicable to your business, such as sales tax, unemployment insurance, and workers' compensation insurance.

It is important to note that certain types of businesses, such as banks, insurance companies, and professional service providers, may be subject to additional licensing and regulatory requirements. Additionally, if your LLC has multiple members, it is important to have a well-drafted operating agreement in place to clarify the rights and responsibilities of each member, as well as to ensure that the LLC is operated in accordance with its legal requirements.