Ready to form an Illinois LLC but not sure where to start? We’ve got you covered. This guide walks you through all the necessary steps to register an LLC in Illinois from naming your business to drafting an operating agreement. Let’s dive in!
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Illinois LLC Quick Facts
- Registering an LLC in Illinois provides tax flexibility, personal asset protection, and brand credibility for your business.
- To register an LLC in Illinois, you will need to file Articles of Organization.
- The filing fee to start an LLC in Illinois is $150.
- All LLCs in Illinois are required to file an Annual Report.
6 Steps to Registering an LLC in Illinois
By following these steps, you can successfully register your LLC in Illinois and begin operating your business legally and efficiently.
Ready to register an LLC in Illinois? Follow these six steps to get started:
- Name Your Illinois LLC
- Appoint a Registered Agent
- File Articles of Organization
- Create an Operating Agreement
- Obtain an EIN and Handle Taxes
- File a Beneficial Ownership Information Report
Step 1: Name Your Illinois LLC
To start, you will need to choose a name for your Illinois LLC that complies with the state’s requirements.
Here are a few of the basic LLC naming rules in Illinois:
- Must include Limited Liability Company, LLC, or Limited Company
- Should be unique and distinguishable from any other business entity registered in the state
- Cannot contain terms that suggest government affiliation or inaccurately represent the business’s purpose
- Cannot contain terms that may be considered offensive
For a comprehensive list of naming requirements for Illinois LLCs, refer to the state’s statutes.
To ensure your business name is unique, conduct a business entity search through the Illinois Secretary of State.
For brand consistency, your LLC name should have a corresponding domain name. Visit GoDaddy to search for your matching domain name and secure it today.
Step 2: Appoint a Registered Agent
In Illinois, it is mandatory to designate a registered agent when registering an LLC. The registered agent, also known as the agent for service of process, serves as the point of contact for receiving legal documents and important notices on behalf of the LLC.
Registered agents in Illinois must:
- Be a resident of Illinois or a business entity authorized to do business in the state
- Have a physical address within the state
- Be present at the provided address during normal business hours
- Not be the LLC itself
Who is Eligible to Serve as a Registered Agent in Illinois?
An Illinois registered agent or agent for service of process can be designated by the LLC owner, an employee of the company, or a third party such as a friend or family member. Alternatively, you also have the option to hire a registered agent service to fulfill this requirement.
Step 3: File Your Articles of Organization
To register an LLC in Illinois, you must submit your Articles of Organization to the Secretary of State’s office. This can be done online or by submitting Form LLC-5.5: Articles of Organization by mail.
The filing fee is $150.
We recommended preparing the following information:
- LLC name and mailing address (this cannot be a P.O. box)
- Your LLC’s purpose
- Registered agent’s name and address
- Names and addresses of all LLC members
Quick Note: If you are expanding an LLC that is already formed in another state, you need to file as an Illinois foreign LLC. This can be done by submitting an Application for Admission to Transact Business along with a $150 filing fee to the Secretary of State.
Step 4: Create an Operating Agreement
An operating agreement is a document that outlines the internal procedures and ownership details of the company. This document helps ensure that LLC members are in alignment and can help prevent future conflicts within the company.
While operating agreements aren’t required for LLCs in the state of Illinois, it is still a crucial piece of paperwork to ensure LLC members are aligned and informed.
Step 5: Obtain an EIN and Handle Taxes
The next step to forming an Illinois LLC is to obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). This nine-digit number allows the IRS to identify your business for tax purposes. Similar to a social security number but for your business.
An EIN also makes it possible for you to open a business bank account and hire employees.
You can obtain an EIN for free on the IRS website.
Step 6: File a Beneficial Ownership Information Report
LLCs in the US are required to file a Beneficial Ownership Information (BOI) report to the US Financial Crimes Enforcement Network (FinCEN).
Failure to do so can result in a daily fine of $500.
New LLCs must file this report within 90 days of formation. Existing LLCs must do so before January 1st, 2025.
You can submit a BOI report for free on the FinCen website.
Next Steps
- Open a business bank account to separate and protect your personal assets. You can do this in minutes using Lili Banking and Accounting Services as well as gain access to a suite of financial tools for your LLC.
Lili is a financial technology company, not a bank. Banking services provided by Sunrise Banks N.A., Member FDIC.
- Determine any licenses and permits that may be required federally or by the state. You can identify requirements by the state on the Illinois State website.
- File an annual report yearly to maintain your LLC’s good standing status. You can do so online or by mail with this form. The filing fee is $75.
- Get necessary insurance coverage for your business, including general liability, workers’ compensation, and personal liability insurance. NEXT Insurance makes getting business insurance easy and affordable.
Additional Tips for Success
- Consider the long-term goals and vision for your LLC in Illinois. Creating a comprehensive business plan can help guide your decisions and set clear objectives for the future success of your company.
- As you navigate the process of registering an LLC in Illinois, it can be beneficial to establish a network of support. Connecting with other entrepreneurs and industry professionals can provide valuable insights and resources to help you grow and succeed.
- Make sure to stay informed about any compliance requirements specific to Illinois that may impact your LLC. Staying up to date on reporting deadlines and fee obligations will help keep your business in good standing with state regulations.
Conclusion
Illinois is a great state to register an LLC. By following the steps outlined above, you can successfully register your LLC and start your business off on the right foot. Remember to choose a unique name, file your articles of organization, appoint a registered agent, create an operating agreement, and obtain all necessary licenses and permits. By diligently following these steps, you can ensure that your LLC formation in Illinois is a smooth and successful process.