How to form an LLC in Illinois
If you are interested in starting an LLC in the Land of Lincoln you have good reason.
Illinois has a 5th largest economy in the country with great access to venture capital.
Every state has slightly different requirements for forming an LLC.
Follow along closely to learn the required steps for creating your own
limited liability company in the state of Illinois.
There are two ways to form an LLC in Illinois
you can form one yourself
or you can hire a service to do it for you.
Let's start by looking at the five basic requirements to
form an LLC in Illinois on your own.
One: Name Your LLC
You'll need to choose a company name that complies with Illinois naming requirements
and do a name search on the Illinois Secretary of State
cyber drive Illinois website to make sure the name isn't already taken.
You should go ahead and register the web domain for your business website and email as well.
Two: Choose a Registered Agent
Illinois requires that you nominate a registered agent for your LLC
who is your business point of contact with the state.
The registered agent can be an individual within the company including yourself
or you can hire a professional service authorized to do business in Illinois.
Three: File The Articles of Organization
To register your LLC you will need to file the articles of organization
with the State of Illinois.
This can be done online or by mail and will cost 150 dollars.
When filing you will need to state whether your LLC will be
member managed or manager managed.
Member managed means all members of the LLC manage the company
this is good for small organizations where everyone is involved in day-to-day operations.
The second option is manager managed where individuals are appointed to manage the LLC.
This is appropriate for larger organizations where
not everyone is involved in the day-to-day affairs of the business.
Four: Create an Operating Agreement
You should also create an operating agreement to establish ownership terms and member roles.
This is an internal document for reference and
does not need to be filed with the state of Illinois.
This foundational document is the core of your LLC and
will help you maintain your organization as well as further
establish your LLC as a separate legal entity.
Five: Obtain an EIN
Lastly you'll need to get an Employer Identification Number or EIN from the IRS
also known as a Federal Tax Identification Number
your EIN is like a Social Security Number for your LLC
and is important for taxes and banking
EIN's are free of charge and can be obtained from the IRS online or through the mail.
And with that you will have formed an Illinois LLC on your own.
Option Two: Hire a Professional Service
The second way to create an Illinois LLC is to hire a professional service to create your LLC for you.
Hiring a professional service to file your forms and act as your registered agent for the LLC
will cost you an additional 50 to 150 dollars.
However there are several benefits to working with a pro.
A hired registered agent helps with getting your reports filed on time,
helps you stay organized by keeping your business mail separate,
and is available at all regular business hours
to accept official mail and legal papers on your LLC's behalf.
A final and important additional benefit of using a service is privacy.
A professional service will provide a level of privacy by withholding your
personal name and home address from the LLC's contact information.
There are many reasons you might not want your
personal information easily accessible and associated with your business.
Hiring a professional LLC formation service is an easy way to accomplish this.
Now that you have seen the different requirements and ways you can form an LLC in Illinois
visit our site and take some time to research your options
and establish a solid foundation for your business activities.
Click on the links in the description below to research the
top five professional formation services
or get more information on how to form an Illinois LLC on your own.
We offer a host of free templates and tools to help accelerate your small business
from operating agreements to business plans
all free of charge.
Visit us at howtostartanllc.com