Forming an LLC in Chicago: What You Need to Know
Starting an LLC in Chicago can seem daunting at first3 min read
Starting an LLC in Chicago can seem daunting at first. After all, there are numerous regulations and laws that you will need to follow to ensure that you are in compliance. The good news is that with the right help, forming an LLC in the Windy City can be a relatively straightforward process. Whether you’re looking for corporate lawyers or need help with limited liability paperwork, understanding what you need to do and why will help you to get the ball rolling.
This article will discuss the basics of forming an LLC in Chicago, including understanding the laws, filing the paperwork, and finding legal counsel when needed. It is important to note that not all the information contained herein will apply to all LLCs in Chicago; it is important to seek advice from qualified professionals when needed.
What is an LLC?
A limited liability company (LLC) is an entity that provides protection from certain debts or liabilities owned by members of the company. An LLC is similar to a corporation, but with some important distinctions. LLCs are less formal, have fewer requirements, and are generally easier to set up and dissolve.
Unlike a corporation, in an LLC there is no need for a board of directors or shareholders. This is because the LLC is owned and managed by its members, who can assign whatever roles they wish to members. This is one of the main differences between an LLC and a corporation.
Forming an LLC in Chicago
Forming an LLC in Chicago follows a similar process as other states, though there are certain steps that you will need to take to make sure that you are in compliance with Illinois law. The first step is to choose a name for your LLC. The name you choose must include the phrases “limited liability company” or “limited company”, or the abbreviations “LLC” or “LC”. Additionally, the name cannot include any words that are associated with the practice of medicine or any words that suggest or imply government endorsement.
Once you have chosen the name for your LLC, you will need to file the Articles of Organization with the Illinois Secretary of State. This is a simple document that will confirm the existence of your LLC. You will also need to provide information about its management structure and the business’s address.
In addition to the Articles of Organization, you will also need to create a Operating Agreement. This document will outline the rules and regulations governing how the LLC will be managed and will establish the members’ rights and responsibilities. It is important to note that the Operating Agreement is not mandatory but it is highly recommended.
Hiring a Business Lawyer
Due to the complexity of the laws governing LLCs in Chicago, it is highly recommended that you hire a business lawyer to help you with this process. An experienced attorney will have the knowledge and expertise needed to guide you through the LLC formation process and to ensure that you are in compliance with Illinois law.
A qualified attorney will also be able to advise you on more complex matters such as filing taxes, managing employees, and protecting your assets. They can also help you to choose the right type of business structure for your specific needs.
It can be difficult to find an attorney who is experienced in business law in Chicago. Fortunately, there are now platforms such as UpCounsel that make it easier to find experienced attorneys who specialize in business law in Chicago. UpCounsel's network of experienced lawyers has you covered, from small businesses to the Fortune 1000. With profiles of our online attorneys displaying client ratings and reviews of recent work, UpCounsel will be sure to find the lawyer that is right for you.
The main takeaway
Forming an LLC in Chicago is not an easy process, but with the right help, it can be relatively straightforward. It is important to understand the laws governing LLCs in Chicago and to seek advice from knowledgeable professionals when needed. Hiring an experienced business lawyer is essential and UpCounsel is an excellent platform for finding an attorney to help you through the process.
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