How to Form an LLC in Illinois
Forming an LLC is an important step to take for your business. If you're ready to make this transition, then you need to know about the specific formation requirements in your state. This article discusses how to form an LLC in Illinois and provides a link to the required forms and links to relevant Illinois statutes.
Forms for Illinois LLC Formation
A major part of forming an LLC involves completing and filing documentation. You can get started today by using FindLaw's do-it-yourself Illinois LLC Formation Package.
LLC Definition
An LLC combines elements of the corporation and partnerships to create a unique business entity. LLC is an abbreviation of "limited liability company." This refers to the protection that members have from personal liability from the LLC's debts or liabilities. This advantage is also present in corporations. An LLC is also like a partnership because of the flow-through taxation feature.
Low-Profit Limited Liability Company
Illinois recognizes the low-profit limited liability company (L3C) which is a variation on the LLC. This version is only available to for-profit entities whose main purpose is to achieve a socially beneficial objective.
How to Form an LLC in Illinois
The requirements of LLC formation are similar in every state, but each state handles the process a little differently. See the chart below for instructions on how to form an LLC in Illinois.
Statutes |
Illinois Limited Liability Company Act:
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Name the LLC |
Illinois LLC names must include the following terms:
The name cannot include the following terms:
The name must be different from names that are of existing businesses already registered with the state. Search the Secretary of State Business Services Name Database to make sure that your chosen name isn't already used for an existing business. |
Appoint a Registered Agent |
You must appoint a registered agent who will serve as an agent for service of process if the LLC is sued. The registered agent:
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File Articles of Organization |
You must file the Articles of Organization (including the filing fees) with the Illinois Secretary of State Department of Business Services. The articles must include the following:
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Create an Operating Agreement |
Illinois doesn't require them, but it's recommended that you prepare an operating agreement. |
Comply with Tax and Regulatory Requirements |
In many cases, if your business sells goods, collects sales taxes, or if you have employees, then you must register with the Illinois Department of Revenue (DOR). Apply for an EIN if your LLC has more than one member, even if there are no employees. |
Determine Necessary Business Licenses/Permits |
Many companies in Illinois are required to obtain local and state business licenses to operate. The specific licenses/permits will depend on your specific business type and the location of your business. |
Note: State laws are always subject to change through the passage of new legislation, rulings in the higher courts (including federal decisions), ballot initiatives, and other means. While we strive to provide the most current information available, please consult an attorney or conduct your own legal research to verify the state law(s) you are researching.
Foreign LLCs
Any LLC that wants to do business in Illinois must register with the Secretary of State. A foreign LLC must appoint a registered agent (with a physical Illinois address) for service of process purposes.
How to Form an LLC in Illinois: Related Resources
If You Need to Form an LLC in Illinois, Talk to an Attorney
If you're forming an Illinois LLC, you might need more help than just completing your forms. Get assistance with creating operating agreements or other formation matters by talking with a skilled Illinois attorney.
Next Steps: Search for a Local Attorney
Contact a qualified attorney.