How to Start an LLC in Illinois (DIY Guide)

If you wish to learn how to start an LLC in Illinois, here is a DIY guide on how to do that without hassles.

This guide contains information on Registered Agents, naming rules, business licenses, and more.

How To Start An LLC in Illinois

Here is a step-by-step guide on how to start an LLC in Illinois.

Here are the most straightforward steps involved in forming your LLC in Illinois:

Complete an Illinois LLC Search and Select a Distinctive Business Name
Provide an Official Address for Your LLC in Illinois
Assign a Registered Agent for your Illinois LLC
File Your Articles of Organization with the Illinois Secretary of State
Get an Employer Identification Number (EIN) from the Internal Revenue Service
Create an Operating Agreement

Complete an Illinois LLC Search and Select a Distinctive Business Name

First, you’ll need a distinctive and unique name for your LLC.

This means that any other business has not used this name in the state.

However, if you’re having trouble coming up with a name, you can try using a business Name Generator to get ideas for your business name. Meanwhile, you’ll need to follow a few naming guidelines, which are:

Your business name must include limited liability company” or its abbreviations (LLC or L.L.C.).
Ensure that your name is distinguishable from any Illinois limited liability company, corporation, limited partnership, or registered limited liability partnership business name.
Ensure the name you desire isn’t already taken by doing a Business Entity Search on the Illinois Secretary of State’s website.
Your business name cannot contain words used to name a government agency (i.e., State Department, CIA, FBI, Treasury, etc.)
Also, it can’t contain certain restricted words like bank, lawyer, attorney, credit union, etc.
Ensure to Reserve the name once you find the availability: You must complete the Name Reservation Request for Domestic Entities form at least two weeks before registration or reserve your business name when completing the online LLC registration.
Consider if the URL is available: Check online to see if your business name is known as a web domain. If it is, you may want to buy the URL to prevent others from acquiring it.

Provide an Official Business Address for Your LLC in Illinois

Every LLC in Illinois must have a designated street address.

Even if it is an office building, a home (if the company is run from a residence), or any other physical location.

More so, it can be outside the state, but it cannot be a P.O. box.

Assign a Registered Agent for Illinois LLC

A registered agent receives official legal and tax correspondence and is responsible for filing reports with the Illinois Secretary of State.

Every LLC in Illinois must have a Registered Agent.

However, this position can be filled by you, another manager in the business, or a dedicated Registered Agent service.

Furthermore, if your Illinois registered agent is a person, they must have a physical address in Illinois.

In addition, they’re required to be present during business hours to receive important documents on behalf of your company.

Meanwhile, you appoint your Registered Agent when you file your Articles of Organization in Illinois.

File Your Articles of Organization

The next step is to create your LLC officially by filing a form with the Illinois Secretary of State to create your Articles of Organization.

However, you must have all the information for your Illinois LLC,

Your article of an organization must include:

Your business name and address
Registered Agent details
Business purpose
Duration (if limited; if not specified, duration is perpetual by default)
Provisions for the regulation of the internal affairs of the company
Names and addresses of managers or members of the LLC at the time of filing
Name of the organizer

In addition, you can file your Illinois Articles of Organization through the Illinois Secretary of State.

Also, you can use the online filing system or by mailing a form to the Office of the Secretary of State

To file by Mail, visit

Office of the Illinois Secretary of State

Department of Business Services

Limited Liability Division

501 S. Second St., Rm. 351

Springfield, IL 62756

However, you’re required to file your Articles of Organization once upon formation, but you will need to file an annual report every year subsequently.

Get an Employer Identification Number (EIN) from the Internal Revenue Service

The next step is to obtain an EIN from the Internal Revenue Service to observe your business.

The EIN is a business identification number used when you file and pay taxes, submit payroll information and payments for your employees, or open a business bank account.

Create an Operating Agreement

The operating agreement is a kind of “instruction manual” that states how you’ll run your business.

An LLC Operating Agreement outlines how business decisions will be made, how the business is set up among members, and what will happen if a member leaves the company.

However, an operating agreement isn’t legally required in Illinois, but some states require that a company have an Operating Agreement in place.

Besides, it’s a good idea to have one to protect your business.

How to start a Foreign LLC In Illinois

If your business is already operating in another state and you want to expand to Illinois, you’ll need to form a Foreign LLC.

This is because forming a foreign LLC allows your company to operate as one entity in multiple states. If you have an existing LLC and want to do business in Illinois, you must register as a foreign LLC.

Conclusion

To start an LLC in Illinois, you need to choose a unique name for your business, get a Registered Agent, get an operating agreement, file your article of organization and get your Employers Identification Number.

However, if you find these processes daunting, you can choose to seek professional services at a cost.

We hope you find the article on how to start an LLC in Illinois useful.

Don’t forget to share!