If you want to form an LLC in Illinois then there are some criteria that you need to match in order to register successfully. There are a few documents that you need to submit to the Illinois Secretary of State including the Articles of Organizations. Here in this guide, you will be able to find the steps to form a legal Illinois LLC. As you might be familiar with that forming an LLC is beneficial to many of the owners.

As it secures all the personal assets of the owners. As if in any case the LLC is at loss and announces the bankruptcy then the personal assets of the owners are safe such as (houses, cars, boats, aircraft, residential plots). If you want to form an Illinois LLC Limited Liability Company then you must have a look at this guide. I have divided all the important steps into different clauses and explained them in a very detailed manner. For your ease of understanding.

 

Start an LLC in Illinois

If you are willing to form an LLC in Illinois then you must know all the steps that you must follow to successfully register the Illinois LLC. Here I have explained to you all the steps in detail, As all the necessary documents that you need to submit including the fees. Everything is mentioned in this article. The Articles of the organization is considered as a legal form that you need to submit if you want to form the LLC in Illinois.

The Department of commerce and consumer affairs is responsible to collect all the forms & documents including the $150 registration fees. Generally, there are three ways that you can submit your forms & documents. You can visit the official website, You can mail them all the documents & forms, you can go in person to the office. As we move further ahead you can follow the step by step and form your Illinois LLC.

Step 1 – Illinois Secretary of State (Name Search)

The first and foremost step to form an LLC in Illinois is you need to select a name for the LLC. You cannot select any name there are some criteria that you need to follow to choose the name. The name you choose must comply with all the rules and regulations as per the naming guidelines set by the Illinois state department. The name you select must be simple and should have some meaning. So that your valuable consumer can easily find your Illinois LLC. Down below I have mentioned the naming guidelines you can follow them and select the name of your choice. You can have a look at my specific article for business entity name search for more detailed information.

Naming Guidelines

  • The name you select must have the phrase “Limited Liability Company” or (LLC, L.L.C., LP, LLP).
  • There are a few words that you cannot use as it is used by the government, FBI, State, Department, treasury, etc. Using these words can confuse your valuable consumers.
  • If you want to use such words as Bank, Attorney, University, Doctor, etc. You must have valid licenses and permits to use it.

Name Availability

Once you choose the name you will have to check that the name you selected is available or not. For performing this task you have to visit the Secretary of State’s Cyberdrive Illinois Website and find the Illinois LLC Search. You will have to enter the name and click proceed. You will see a list of names if you find the name in the list then you cannot use it is taken by another entity. You must find a name that is not taken by any of the entities and is available.

Buy Domain

Once you have selected the name for your Illinois LLC. You can perform this task as it is optional to buy a domain name for your LLC. If you are willing to grow your business in the future then you can use the online website. As you can sell your products by creating an online website and increase your growth in sales. If you don’t want to create a website now you can buy it and secure it for the future & you can block others from buying it.

I Recommend you to select a name that is short and simple so that your clients can easily search for it. You must reserve your name as soon as possible so that no other firm can use the name that you want to use. Another important thing that I recommend is that you must select 4 to 5 names in the option so that if one name is unavailable you can use another without wasting time.

Step 2 – Choose Your Registered Agent

According to the Illinois laws, you will have to nominate a  registered agent for your Illinois LLC. If you want to operate & maintain the LLC legally then you will need a registered agent. The registered agent takes all the responsibility to submit and receive all the government official notices. Although, they also deal with all the lawsuits, income status, licenses, and permits, taxation paperwork.

Who can be your registered agent?

According to Illinois law, you must have a registered agent for your LLC. He/she can be your spouse, family member, friends, employees, or you yourself. You can select anyone you want but he/she should know all the forms will be able to reply to them. The registered agent represents them as an LLC, Whosoever is elected must keep the company up to date.

I Recommend that you must select a professional register then selecting a registered agent from your business. It is because the professional registered agent is highly trained regarding all the circumstances. They are more responsible for the work and they have more knowledge about the rules and regulations regarding the taxation policies of the government.

Step 3 – File the Illinois Articles of Organization

As I mentioned earlier that the Articles of Organization is considered a legal document. This document contains all the essential information about the LLC name, complete address, and name of registered agent, formation date, EIN, etc. You will have to submit this document if you want to register your LLC in Illinois. If you want to know more about the Illinois Articles of organization then you can check this guide. I have provided detailed information related to the Articles of organization for Illinois LLC. Generally, there are three ways that you can submit the form to the official Secretary of state.

You can go and visit the online portal and submit there including the registration fees. For proceeding online you have to file the form by going to the official website of the government and fill the form. You have to fill the form and pay the number of fees at the time of submitting it online. For filing the fees you can either use your credit card or you can pay through e-payment.  You can mail all the documents and forms, or else you can go and visit the office in person and submit them there. You will have to provide all the information about the Illinois LLC such as the LLC is member-managed or manager-managed. Moreover, you will have to provide your EIN details business bank account details, etc.

Mailing Address

  • Department of Business Services
    Limited Liability Division
    501 S. Second St., Rm. 351
    Springfield, IL 62746
I Recommend you to file the articles of organization with the online portal. This is one of the fastest and easiest ways to file for it. In case you are not available in the state then also you can file this form as you can do it online from anywhere.

Step 4 – Create Your Illinois LLC Operating Agreement

The Operating Agreement is not an essential document while registering, But as it is a legal document you must have it with you. As it outlines all the operating procedures and ownership, as this document has all the records of the ownership shares. This document is considered legal proof it is introduced in any of the future conflicts. This is also one of the documents that ensure that the LLC is formed legally and maintained properly. Yes, you must have the Illinois LLC Operating Agreement if your LLC has multiple owners. As it reduces the risk factor, and keep all the records. I can help you to learn how to create your operating agreement.

I Recommend you to create an operating agreement for your LLC in Illinois as it will provide you with all the information. Though it is not an essential document you must have it as it is a legal document. This document will help you to prevent any mishappening in the future and also regarding the rules and regulations of the firm.

Step 5 – Get Your Illinois LLC EIN

Once you have registered the LLC successfully, and you want to recruit new employees in your LLC. Then you must have the Employer Identification Number. To hire new employees legally you will need this certificate, the EIN is connected to the taxation, license, and permits for an LLC. If you want to obtain your own Employer Identification Number you will have to register with the IL Secretary of State. If you want to know more about how you can get the EIN in Illinois then you can have a look at my detailed guide for Illinois EIN. When all the verification is done you will get the 9 digit number from the Internal Revenue Services.  All the taxes and income reports are recorded. It also helps you in many circumstances such as

  • If you want to open a business bank account then they will ask for the Employer Identification Number.
  • The registered agent might need the EIN to manage all the state and federal taxes.
  • If you want to increase the manpower and hire new employees, then you will need the EIN.
I Recommend you to get the EIN as soon as you complete the formation of articles of organization. It is the most important thing you will require if you want to hire employees in your LLC or want to open a bank account in the name of the business. It is also recommended to file it online so that you can get it faster.

Cost To Form Illinois LLC

It is known that you have to pay various fees in order to work or start anything. So, to create an LLC you have to file different kinds of costs. You won’t pay anything without getting proper knowledge about it. So to let you know regarding the different costs that should be paid for creating an Illinois LLC I have provided the details below. Lookout at the cost and get the details regarding it.

Services
Fees
Illinois Registered Agent
Starting from $49
Domestic & Foreign LLC filing fees
$150
Online Filers
(+)$100
Standard LLC
$500
Series LLC
$750

The estimated cost for a domestic Illinois LLC would be between $349 – $399. Now if you not a resident of The U.S. then it would require you to file for the Foreign Illinois LLC that would estimate between $799 – $849.

 

Illinois LLC Important Details
The Form
Articles of Organization
Agency
Illinois secretary of state
The Filing Fee
Starting From $150
Registered Agent
Starting From $49
Online Filing
Yes
Corporate Tax
7%
State Income Tax
4.95 of net income

After Filing Process For Illinois LLC

Once you register the LLC in Illinois there are some more steps that you need to complete after register Illinois LLC. such as licenses and permits, all about taxes, etc. So if you want to run the LLC in Illinois legally then you must have appropriate licenses and permits. It may differ from state to state so you may know all the licenses and permits that you will need to operate the LLC legally according to your business nature.

Illinois Licenses and Permits

If you want to utilize your Illinois LLC then all licenses and permits must be up to date. To acquire there must be different steps it may vary from state to state. Every state has different rules and regulations so must see that your LLC complies with all the rules of Illinois state. To learn more about the Licenses and permits you can checkout.

  • If you are looking for the federal laws & licenses and permits that you will need to run an LLC then check out the U.S. Small Business Administration (SBA)
  • If you want to find out the state’s laws, for licenses and permits then you can visit the Illinois Licenses and Permits official state website.

Illinois LLC Taxes

As you might be familiar with taxes, if you miss out on something have a look here I have explained everything about LLC in Illinois taxes. The taxes may depend on the business type and you may have to fill one or more forms.

Sales Taxes: If you have formed a business in which you have to sell the products directly to the customers then you must register for the seller’s permit. To get this certificate you must visit the MyTax Illinois Website, once you get the certificate you will be able to collect the sales tax from the consumers. The tax which is imposed by the states & municipalities is basically known as Sales and Use taxes. 

Employer Taxes In Illinois: Once you have registered as an Illinois LLC then to start your business you will need employees. To hire the employees legally you must register for Unemployment Insurance Tax including the Employee Withholding Tax.  To file these two forms you can visit MyTax Illinois Portal.

Federal Requirements: As I mentioned earlier in this guide you have to submit the income report to Internal Revenue Services. To submit the report you will have to fill a form and attach the documents with it. Here I have mentioned the forms you can choose according to your business type.

  • If an Illinois LLC is formed and operated by multiple owners then you will have to fill the 1065 Partnership Return Form.
  • If the LLC is formed and managed by single-member then you will have to file a 1040 Schedule C form.

Hiring Employees

Hiring employees is one of the most important tasks for those LLC that need employees to run the LLC. You can not choose anyone as an employee for your Illinois LLC. So, for selecting an employee government has made out some rules and regulations for selecting an employee. Employees are the most essential need for an LLC as they provide their knowledge and work hard for the firm.  So read the guide below before selecting an employee.

  • Verify whether they are allowed to work in the US or not.
  • You must provide the employees with workers’ compensation insurance.
  • New employees must be reported as “new hires” to the State.
  • Withhold employee taxes. Use the described method.
  • Print compliance posters and place them in visible areas of your workspace

Avoid Automatic Dissolution

You might know that the government has all the rights to dissolve your Illinois LLC if you are not complying with the rules and regulations of the government. So, you must comply with the rules and pay all the taxes before the due date or else you might have to pay a penalty or your LLC will be dissolved automatically by the government. To prevent your LLC from automatic dissolution you have to use a professional registered agent so that he/she might remind you regarding all the due dates and pay it on time.

Tip: Separate Your Business & Personal Assets

This is one of the most important tips that I would like to provide you and it is highly recommended. You must separate your personal accounts and business accounts when you form an LLC. It is because when you mix them your personal assets are at the highest risk when the LLC is going to be dissolved. To prevent your personal assets you have to follow the following two steps. These two are the most important steps to be considered then only you could be able to prevent your personal assets.

  1. Open a bank account for your business
  2. Get a credit card for your business

 

Illinois Foreign LLC Registration

If you have registered your Illinois LLC successfully If in the future if you are planning to grow your LLC and form a new LLC in different states then you will have to register as a foreign LLC. If you are forming a foreign LLC then it will be very beneficial to you in the future. If you already have an LLC and you want to form a new Illinois LLC then you will need to register as a foreign LLC. The thing you have to do is to refer to the points for creating a domestic LLC as it is somewhat similar.

You have to decide the name fill out the form and then attach all the documents along with a check containing the filing fees and send it to the below address. You can perform this task by mail and you will need to attach the documents including the Certificate of good standing. Certificate of good standing is known to be an important document for those creating foreign LLC.

Mailing Address

  • Department of Business Services
    Limited Liability Division
    501 S. Second St., Rm. 351
    Springfield, IL 62756

How to Obtain a Certificate of Good Standing?

A Certificate of Good Standing ensures that Illinois LLC was formed legally and maintained properly. As it averages your overall performance of your LLC  of complete one year. You must try your best if you are forming an LLC as it will be projected in your certificate of good standing. If you have a positive certificate of good standing then it will be very beneficial to you in several situations.

  • If you want to make improvements in your LLC and you look for funds from the banks or other lenders you will need the certificate of good standing.
  • If you are willing to form a new LLC in a different state then you will need a positive certificate of good standing.
  • At the time of renewal of licenses and permits, you will have to provide the Certificate of good standing.

How to Dissolve an LLC in Illinois

Sometimes the time comes when the company decides to end up the company. It means that all the members decide to dissolve the firm for one and another reason. It is also that the time of the Illinois LLC has been completed and the members need to work on another thing so they dissolve it as per the contract. The most important thing you should consider at the time of dissolution is the operating agreement that contains all the information. To know the whole process of dissolution you have to go for a dissolution guide. Follow the following things that are most important for dissolution.

  • To close your business tax accounts
  • To file the articles of dissolution

Frequently Asked Questions

1. How much does it cost to start an LLC in Illinois?

If you are willing to start an LLC then you will have to submit some documents, forms including $150 registration fees.

2. How much time does it take to get an LLC in Illinois?

To form an LLC in Illinois it takes up to 10 days. You can perform this task by mail or online.

3. Can I have the EIN without the Social Security Number?

Yes, you can obtain the EIN for your LLC without having the SSN. You will have to file the IRS Form SS-4 and Section 7b should be left blank. You must make a call to IRS at (267) 941-1099 and tell them the details.

4. Can the owner be the registered agent in Illinois?

Yes, the owner can be the registered agent in Illinois LLC. He must know all the forms and documents that he needs to submit.