Are you ready to bring your business vision to life in the Midwest? Whether an experienced entrepreneur or a newcomer, forming an LLC in Illinois offers numerous advantages. Explore starting an LLC in Illinois and move forward on your entrepreneurial journey.
Step 1: Name your Illinois LLC
Step 2: Choose a Registered Agent
Step 3: File an Articles of Organization
Step 4: Received a Certificate From the State
Step 5: Obtain an Operating Agreement
Step 6: Get an Employer Identification Number
Step 1: Name your Illinois LLC
When starting an LLC in Illinois, the first step is to pick a unique name for your business. Ensure it ends with terms like “Limited Liability Company,” “L.L.C.,” or “LLC.” Avoid using abbreviations like “Ltd.” or “Co.”
You can check if the name is available using the Illinois Business Search website or by contacting the Secretary of State.
Additional Consideration:
Reserve your Name: If you’ve chosen a name but aren’t ready to file the articles of organization, you can reserve it with the Illinois Secretary of State. Fill out the Application to Reserve a Name (Form LLC-1.15) and send it in with a $25 fee.
Website domain: Even if you’re not thinking about a website now, reserving your domain name is wise. Before confirming your LLC name, check if the website address (URL) is free, ensuring you can create a website in the future.
Step 2: Choose a Registered Agent
You must choose a registered agent to handle legal documents for your business. This agent can be an Illinois resident or an authorized company with a physical address in the state, known as the registered office.
You or an employee can be the registered agent if you meet the criteria. However, LLCs and corporations cannot serve as their agents in Illinois. Alternatively, you can appoint a registered agent to represent you, with costs ranging from $49 to $300 annually based on service quality. It’s essential to inquire and review before making a decision.
Step 3: File an Articles of Organization
When starting an LLC in Illinois, you must submit a Form LLC-5.5, also known as the Articles of Organization, to the Secretary of State’s Department of Business Services. You can choose to make the formation effective immediately or within 60 days.
You can complete the process online or mail the documents to:
Secretary of State
Department of Business Services
Limited Liability Division
501 S. Second St., Room 351 Springfield, IL 62756
The filing fee is $150, payable by certified check, cashier’s check, certified public accountant’s check, Illinois attorney’s check, or money order to the Secretary of State.
Foreign entities wanting to do business in Illinois must complete Form LLC-45.5, which requires a $150 processing fee.
You’ll typically need the following information to fill out the form:
- LLC name
- Principal place of business address
- LLC purpose
- Effective date
- Registered agent’s name and address
- LLC duration (perpetual or specified)
- Initial manager(s) or member(s) names and addresses
- Organizer(s) name, address, and signature
Step 4: Received a Certificate From the State
Once approved by the Illinois Secretary of State, the business owner will receive a certificate from the state confirming the formal existence of the LLC.
Step 5: Obtain an Operating Agreement
An LLC operating agreement is like a roadmap for your business in Illinois. While the state doesn’t require it, having one is helpful, especially for small business owners. Even single-member LLCs can benefit from planning for future growth and challenges with this document.
In an operating agreement, you’ll usually find information about:
- How to divide profits and losses
- Voting rights and responsibilities
- When and where meetings occur
- Procedures for transferring ownership
- Percentage of ownership for each member
Step 6: Get an Employer Identification Number
All LLCs in the US with more than one member and those planning to hire employees must obtain an employer identification number.
You’ll need your LLC’s Employer Identification Number to
- Pay income taxes
- File tax returns
- Run payroll
- Open business bank accounts
- Acquire business credit cards
Getting an EIN isn’t required for single-member LLCs with no employees. However, using an EIN for business purposes is still advisable. Your only alternative is your Social Security number, which increases your identity theft risk.
There is no fee, and you can apply for an EIN on the IRS website.
Follow these steps to start your LLC in Illinois and get your business off the ground.
LLC State Guides
FAQs
How long does starting an LLC in Illinois take?
It takes around 3-4 weeks to get approval for Illinois LLCs by mail. For Online, it takes 5-10 business days.
How much does it cost to start an LLC in Illinois?
Starting an LLC in Illinois costs $150. You can submit the filing fee and your Articles of Organization to the Secretary of State.
What are the primary grounds for rejection when applying for an LLC in Illinois?
It’s important to be aware that Illinois rejects LLC applications mainly because the business name is too similar to another.
Do you have to get a lawyer to start an LLC in Illinois?
No. Many small businesses successfully set up LLCs without the need for a lawyer.
