How to Form an LLC in Illinois

Introduction

This is a guide to forming an LLC in Illinois. The first section is about choosing a name for your business, and the last two sections are about filing articles of organization and getting an employer identification number from the IRS.

Choose a Name for Your Business

In addition to the above requirements, you should also make sure your business name does not:

• Sound too similar to another company’s name. For example, “ABC Company” would likely be an invalid business name because it is too closely related to actual company names like Wal-Mart or Target.
• Sound too similar to a government agency. This can lead to confusion and potential legal issues for both parties involved. For example, in Illinois, the Secretary of State’s office oversees business filings; therefore if you named your LLC after that entity (e.g., “Secretary of State Corporation”), this could cause confusion among customers who may think they are doing business with the state itself when they are actually working with your LLC instead!
• Sound too similar to a political candidate or campaign slogan (unless you’re running for office). You can learn more about how these rules work here: [link].

Appoint and name a registered agent.

The registered agent is a person or business entity that the Secretary of State lists as the official contact for your LLC. It’s important to appoint a registered agent because they act on behalf of your LLC when legal documents are served, such as summonses or lawsuits. The Illinois Secretary of State has specific requirements for what makes a good registered agent:

• A physical address in Illinois (the home address will suffice if you don’t have an office)
• Availability during normal business hours (9am-5pm, Monday through Friday)
• An ability to receive mail at its location

File Articles of Organization with the Illinois Secretary of State.

File Articles of Organization with the Illinois Secretary of State. Once you’ve determined your LLC’s name and established how you want to structure it, you’ll need to file your articles of organization with the Illinois Secretary of State. You can do this by mail or online using the “Formation” tab on their website.

The filing fee varies depending on whether or not your LLC has issued shares and whether or not it will have a registered agent (a person or company who will take care of its business in Illinois). If there are no shares issued and no listed registered agent, then there is a minimum fee of $100 due at time of submission; if either condition exists, then there is an additional minimum filing fee that increases according to how many shares have been issued (note: only one shareholder may hold 100% ownership interest) and/or if there is a registered agent listed. The fees are as follows:

• No Shares Issued + No Registered Agent = $100 Minimum Fee
• Shares Issued + No Registered Agent = $125 Minimum Fee
• Shares Issued + Registered Agent = $150 Minimum Fee

Create an Operating Agreement.

An operating agreement is a document that covers issues such as how to handle the exit of members, how much time it takes for new members to take seats on the board, and who has what powers within the business. It’s also used to set up the terms of your LLC so you don’t have to deal with any arguments or disagreements later on—for example, if there are multiple owners but only one person has power over major decisions like purchasing new equipment or hiring employees.

The Illinois Secretary of State doesn’t require an operating agreement when forming an LLC in Illinois; however, many experts recommend having one because they help avoid legal issues down the line. If you’re thinking about getting into business with friends and family or anyone else who doesn’t know their way around corporate law (and most people don’t), then having an operating agreement can save everyone a lot of headache in case something goes wrong later on.*

Obtain an EIN from the IRS.

You will need an Employer Identification Number (EIN) to form your LLC. You can apply online, but be aware that you will need to provide a Social Security number (SSN). If you do not have one, you can apply for one online at the same time as applying for your EIN.

Takeaway:

If you’re looking for a business that allows for the separation of personal and professional assets, a limited liability company (LLC) may be the right option for you. By incorporating an LLC in Illinois, your business will receive all of the benefits of having formal legal status without requiring its members to follow complex legal procedures. In addition, forming an LLC requires little more than filing some paperwork with state officials.

To form an LLC in Illinois, simply complete Form LP-1 and submit it along with $300 in fees. Then choose a name for your company, file it with the Secretary of State’s office and conduct necessary internal operations!

If you have further questions about how to form an LLC in Illinois or what steps should be taken after doing so, feel free to contact us at any time!

Conclusion

Congratulations on your new Illinois LLC! If you have any questions about the process, please feel free to contact us here at LegalZoom. We’re happy to help you get started with a business that fits your needs and goals.