Starting a new business is always an exciting time for entrepreneurs. However, navigating the legal side of startup can be a challenge. When it comes to LLCs in Illinois, there are a lot of things you need to consider. This includes everything from determining the best structure to setting required fees and understanding the state’s laws. To make the process as easy as possible, we’ve compiled a list of our top five things to consider when forming an LLC in Illinois.

As the third-largest state in the US by population, Illinois attracts entrepreneurs with its excellent resources and business-friendly environment. While federal LLC laws remain relatively consistent among the states, it is important to understand the local laws of each region. This guide will take you through the five essential elements of forming an LLC in Illinois, offering business advice to make the process as smooth as possible.

1. Choose the Right Structure

The first step in forming an LLC in Illinois is choosing the right structure. The type of LLC you choose to form will depend on a number of factors, including your company's purpose, size and taxation requirements. For example, while the basic LLC is suitable for almost any type of business, multi-member LLCs are best-suited for companies with multiple owners. If you’re unsure, consider the pros and cons of each type of LLC before you make a decision.

It’s also important to note that Illinois allows for the formation of a professional limited liability company (PLLC). These are typically used by those in professions such as law, medicine and accounting, as the LLC can protect the owner’s assets from malpractice or negligence claims.

2. Name Your Company

Once you’ve decided which type of LLC is right for your business, it’s time to think of a name. When choosing a name for your LLC, make sure to avoid using restricted words such as “bank” or “insurance”, as these could be seen as implying your company is engaged in activities that it isn’t. Your LLC name should also be easily distinguishable from existing businesses, as having the same name could lead to legal problems later down the line.

When you’ve selected a business name, you’ll need to confirm that it’s available in Illinois. Both the Secretary of State Service and Secretary of State Database can be used to check availability. Once you’ve purchased a domain name, make sure to renew it on an annual basis to avoid it from lapsing or being taken by someone else.

3. File the Right Paperwork

Before your LLC can open in Illinois, you need to properly file the necessary paperwork. This includes filling out a document of organization and delivering it to the Illinois Secretary of State. In some cases, you may also need to publish a filing notice in a local newspaper for four consecutive weeks.

It’s important to be aware of any specific requirements that may apply to your business type. For example, some LLCs will need to submit additional documents such as an operating agreement. Again, make sure to do your research to ensure you’ve filled out and filed all the necessary paperwork.

4. Pay the Necessary Fees

When filing your LLC paperwork, you’ll also need to submit the required fees. The basic filing fee for an LLC in Illinois is $150, but there may be additional fees and taxes depending on what type of company you’re forming. Some LLCs may also be required to pay an annual fee and report their earnings to the state every year, so you should check the specifics of your situation.

5. Understand Local Regulation

Finally, it’s important to take the time to understand the local regulation that applies to your new LLC. For example, if your LLC is based in Chicago, you’ll need to be aware of the state and local laws that affect businesses in the Windy City. As such, it’s important to obtain the right legal advice when setting up your LLC.

Fortunately, UpCounsel’s network of experienced lawyers makes it easier than ever to access high-quality legal advice. With an average of 14 years of experience, UpCounsel’s attorneys have the knowledge and credentials to assist you with any Illinois LLC issue. This affordable option provides the perfect way for entrepreneurs to get the legal help they need for their new LLC.

Topics:

Illinois LLC,

LLC in Illinois,

business attorneys