Many business owners in Illinois choose to form a limited liability company (LLC) because it blends the benefits of sole proprietorship or partnership-style taxation with the limited liability protections of a corporation.
Creating an LLC requires completing several key filings with the state. You may choose to streamline this process by working with one of the best LLC services in Illinois. To handle the setup yourself, follow this guide’s steps for completing the necessary documentation and meeting state requirements.
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1. Choose a Business Name
Your first step in launching your Illinois LLC is to select a business name that is clearly different from other companies registered in the state. A distinctive name protects your brand identity and helps eliminate confusion in the marketplace. You can search for available names through Illinois’s business name search tool.
LLC naming rules in Illinois specify that the name must include “Limited Liability Company,” “LLC” or “L.L.C.” within it. Certain terms are off-limits, especially those that may give the impression of a connection with government offices or certain regulated industries. Visit Illinois’s secretary of state website for the most detailed guidance concerning name requirements.
If you’d like to hold your business name while preparing your paperwork, you can file a reservation request. The fee in Illinois is $25, and your reservation lasts for 90 days.
Check Online Availability of Your Business Name
The online identity of your business can define how customers view your brand. Establishing a website domain and social media accounts that use your business name helps protect your reputation and makes it easier for people to find you online. Even if you don’t sell online, maintaining consistency across digital platforms builds trust and visibility.
You can confirm domain availability using a domain registrar, then purchase and register your preferred name for an annual fee.
2. Choose a Registered Agent
By law, your Illinois LLC must identify a registered agent to accept all legal documents (such as service of process) and government correspondence (such as tax forms) intended for the company. Acceptance of such communications by the registered agent is legally equivalent to acceptance by the LLC.
Illinois has certain eligibility requirements for registered agents. An LLC in the state can select a natural person or a domestic or foreign legal entity licensed to transact business in the state. In certain states, registered agents have to sign a consent form to serve in the role. In Illinois, the chosen agent is not required to provide their consent to serve in this capacity.
For a fee, any of the best registered agent services in Illinois can function as the registered agent for your LLC.
3. Create an Operating Agreement
In simple terms, an operating agreement serves as the rulebook for your LLC. It outlines how decisions are handled, how profits are shared and what roles each member carries.
Even though Illinois does not force LLCs to have an operating agreement, creating one can bring clarity to the way your company functions. It also affirms that your LLC is a distinct legal entity, separate from its owners.
4. Obtain an Employer Identification Number (EIN)
Your Illinois LLC may need to get an employer identification number (EIN) from the Internal Revenue Service (IRS). This is your business’s federal tax identification number and is used when filing taxes, setting up a business bank account and hiring staff.
All multimember LLCs must apply for an EIN (single-member LLCs are not required, but are still encouraged to do so, as it can simplify various business activities and support the separation between personal and business finances).
You can submit a free EIN application online through the IRS and receive your number instantly after approval.
5. Register Your LLC With Illinois
Now’s the time to legally register your LLC with Illinois. To start, you’ll need to provide the Illinois secretary of state with your articles of organization. This filing outlines your business’s key information, such as its name, address and the registered agent who will receive legal correspondence. You may file the articles of organization online, in person or by mail. Illinois allows online submission through its business portal.
Anonymous LLCs
Illinois makes it easy to establish an anonymous LLC because member information is not added to the state’s public record. With no disclosure stipulation, owners benefit from an extra layer of privacy while still meeting all formal LLC obligations. Just keep in mind that your registered agent’s contact info for the company will appear publicly.
Registration Cost
The cost to form an LLC is $150, placing Illinois on the lower end of the spectrum for startup costs. If you’re trying to move quickly, the state allows you to pay an expedited cost of $250 to receive rush handling of your paperwork. Even after adding optional services, the total upfront spend stays competitive compared to other states.
LLC Duration
An LLC in Illinois is formed to exist in perpetuity by default. This means that your company will continue indefinitely unless you choose to set an end date or specific duration in your formation documents. When completing the articles of organization, you can indicate if you want your LLC to dissolve automatically after a certain period or event. Otherwise, the LLC will remain active until you take formal action to dissolve it.
Processing Timeline
Generally, Illinois completes standard processing of an LLC registration within 10 business days. Considered with the estimated processing times provided by other states, this is a rather lengthy timeline.
6. Obtain Required Business Licenses and Permits
To legally run your LLC, you must follow your state’s rules for business licensing in Illinois and apply for any licenses or permits your business needs. These requirements can come from multiple levels of government, such as state entities, federal departments or your local town, city or county. What you need depends on your trade, the services you provide and whether your profession is regulated. Every license or permit has its own set of instructions that usually involve documentation, verification and a filing fee, and many must be renewed.
LLC State Guides
Ongoing Requirements for an LLC in Illinois
Once you’ve gotten your business fully operational, there are certain ongoing obligations to consider. In addition to continuous compliance with required licensing and/or permit criteria, maintaining your LLC’s status as a company legally authorized to conduct business in the state of Illinois involves completion of ongoing reporting and recordkeeping duties.
File an Annual Report
LLCs operating in Illinois must file an annual report to help their business information stay up to date in the state’s system and protect their status with the state. This report includes current company details like its physical address and the identity of its registered agent as well as information on the LLC’s ownership or management configuration.
To file their annual report, Illinois LLCs have to pay $75. That’s a relatively modest cost compared to annual report fees in other states.
Frequently Asked Questions(FAQs)
What is the filing fee for registering an LLC in Illinois?
To register an LLC in Illinois, you must include $150 when you file your articles of organization.
How long does it take to form an LLC in Illinois?
In Illinois, the estimated standard processing time for LLC formation paperwork is 10 business days.
What types of LLCs are permitted in Illinois?
As well as standard LLCs, Illinois allows the creation of a series LLC, low-profit LLC and anonymous LLC.
How can I dissolve an LLC in Illinois?
When you want to formally dissolve your Illinois LLC, you will need to file a statement of termination with the state. There is a $5 filing fee required.
How do you change the name of an LLC in Illinois?
You can change the name of your LLC in Illinois by filing the articles of amendment.
Does an LLC in Illinois require an operating agreement?
No. There is no state requirement that LLCs in Illinois create an operating agreement. However, such a document can be helpful in delineating operational tasks and preserving the limited liability status of the company.
