Starting a limited liability company (LLC) in the City of Chicago requires taking a series of steps to ensure that the business is compliant with Illinois laws and regulations. In addition to being aware of the state requirements for forming an LLC in Illinois, business owners living in or operating a business in the City of Chicago also have additional local guidelines to abide by. This guide sets out the key steps any individual or group must take to establish an LLC in Chicago, Illinois.

Step 1: Choose an LLC Name

The first step to creating an LLC in Chicago is choosing a unique business name that will appear on legal documents and filings (e.g., articles of organization and LLC operating agreement). The name must not conflict with existing businesses and must comply with Illinois LLC naming guidelines. In essence, the name must include “LLC” or “L.L.C.” and cannot include words that imply it is affiliated with or endorsed by the state of Illinois.

Step 2: Appoint a Registered Agent

The next step is appointing a designated “registered office” and “registered agent.” The registered office is the company’s principal physical address in Illinois, while the registered agent is an individual or entity who will accept legal documents, such as service of process, on the LLC’s behalf. The registered agent must have a physical address in Illinois and must have the consent of the LLC’s managers.

Step 3: File Articles of Organization

The third step is filing the “Articles of Organization” with the Illinois Secretary of State. The articles of organization include information such as the LLC’s name, purpose, registered office, registered agent, manager, and members. Filing fees may also apply, depending on the type of business and the amount of capitalization. Furthermore, business owners must ensure that the Articles of Organization make clear that the business’s principal place of business is located in the City of Chicago.

Step 4: Prepare an Operating Agreement

The fourth step is preparing an “Operating Agreement.” The Operating Agreement sets out the LLC’s operating policies and procedures and is important for internal and external disputes resolution. It is important to include terms like the voting procedure, profit-sharing, liability protection, and handling of business assets. The Operating Agreement should be signed by all members and kept in the LLC’s office.

Step 5: Obtain Local Licenses and Permits

The fifth step is obtaining necessary local licenses and permits. Depending on the type of business and its location, the LLC may need to apply for permits from local government authorities, such as the Chicago Department of Business Affairs and Consumer Protection. Business owners should consult with their local government authorities to confirm which permits are necessary for their type of LLC.

Step 6: Follow All Local Regulations

Finally, business owners are responsible for ensuring that their LLC follows all local regulations in the City of Chicago. These regulations will vary depending on the type of business and location. Business owners should consult with their local government authorities or a knowledgeable attorney to ensure that their business is following all local regulations that apply to the LLC.

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Chicago,

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