Illinois LLC Formation Attorneys & Lawyers for Hire
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Lauren Roberts, Esq.
Adam S. Tracy
Illinois LLC Formation Lawyers for Hire
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Why use UpCounsel to form an LLC in Illinois
Starting an LLC in Illinois with a business startup attorney on UpCounsel is easy, informative, and cost-effective. In just three simple steps, our LLC attorneys will help you protect your business and personal assets, and help you organize your business for state and federal compliance for limited liability companies.
When forming an LLC in Illinois with UpCounsel, the attorney you choose to help you will conduct a business name search for your Illinois LLC and assist you in preparing your LLC Operating Agreement, along with providing other legal services based on your needs. Once your Articles of Organization have been prepared and successfully filed with the Illinois Secretary of State Department of Business Services, your Illinois LLC has been formed and begins its existence as a corporate entity.
Requirements for Forming a Illinois LLC
Choosing a Company Name for Your LLC
One of the first steps in the process of forming your Illinois Limited Liability Company is to choose your business name.
The business name that you choose must contain the words "limited liability company" or the abbreviation "LLC" or "L.L.C." as the last words in the name of the limited liability company. The words "limited" and "company" are not allowed to be abbreviated to "Ltd." and "Co.," respectively.
It must be distinguishable (not the same as or deceptively similar to) the name of any Illinois Limited Liability Company or foreign LLC reserved or registered and cannot contain the words "bank," "trust," "trustee,""incorporated," "inc.," corporation," or "corp.," or "insurer" or "insurance company" or any other words suggesting that it is in the business of issuing policies of insurance and assuming insurance risks.
Your LLC name must be signed by a manager, or if there are no managers, by a member.
By using UpCounsel, you can choose several business names in order of preference. Your attorney of choice can then conduct a name check for your Illinois Limited Liability Company before filing to see which names are available. Once you have chosen an available name, your chosen LLC attorney can help you properly register your name with the State of Illinois.
Articles of Organization: When forming an LLC in Illinois, the Articles of Organization must be filed with the Illinois Secretary of State Department of Business Services. Illinois state law requires that certain information be included in your Articles of Organization when forming your Illinois LLC.
This information must include:
- The LLC's name and address.
- The LLC's registered agent's name and address.
- The purpose for which the LLC is organized.
- The LLC's duration (either infinite or for a finite term).
- Whether the LLC is run by managers or members; the name and address of each manager or managing member.
- The name and address of the LLC's organizer(s).
Additionally, a Illinois LLC formation generally requires inclusion and/or consideration of the following:
LLC Operating Agreement: Although the LLC operating agreement is not required with the Articles of Organization, it is a good idea for every LLC with more than one member to have one. The Articles of Organization may contain restrictions or prohibitions on the power of the members to adopt, amend, or repeal an operating agreement.
Membership: A limited liability company must have one or more members.
Eligibility Requirements: A natural person or an entity.
Business Licenses: Business licenses and/or permits are required for most businesses. Contact the Illinois Secretary of State Department of Business Services for specific licenses.
Resident Agent needed for a Illinois LLC
Remember every Illinois LLC must have a registered agent in Illinois, which is the person or office designated to receive official state correspondence and notice if the company is "served" with a lawsuit. The statutory agent may be an Illinois resident or business entity authorized to do business in Illinois. If the registered agent is a corporation, its articles must authorize it to act as an agent. The registered agent must have a physical Illinois street address.
Illinois Secretary of State Department of Business Services
Once you create an LLC in Illinois, the Illinois Secretary of State Department of Business Services will require that certain recurring responsibilities and duties be fulfilled. The most important of these are explained below.
For further information, contact the Illinois Secretary of State Department Business Services.
Recurring Responsibilities and Duties for Illinois LLCs
Annual Report: Each limited liability company shall provide an annual report to the Illinois Secretary of State Department of Business Services regarding its financial condition to each of its members. The report must be filed by the LLC's anniversary date and the filing fee is $250.
Filing Fees for a Illinois LLC
The processing fee for the Articles of Organization is generally about $500 but may be expedited online for additional fees. Also, the general fees for filing and reserving a LLC's name is $300. These fees can change so it would be best to check with the Illinois Secretary of State Department of Business Services on what the latest fees are. You may pay these fees in many different forms including cash, check, money orders, or debit and credit cards.
Taxes for a Illinois LLC
A Illinois LLC is not required to be a separate tax entity like a corporation; instead, it can be considered a "pass-through entity," so that the owners of the LLC report business losses or profits on their personal tax returns, just like in a partnership.
Illinois state law follows federal law for income tax purposes, and will also require a state tax identification number.
Federal Income Tax: Unless you elect to tax the limited liability company as a corporation, the IRS will treat a single-member LLC in Illinois as a sole proprietorship for tax purposes. This means that the LLC itself does not have to pay taxes or file a tax return. Unless you elect to tax the Limited Liability Company as a corporation, the IRS treats multi-member LLCs as partnerships for tax purposes. This means that LLC owners will each need to pay taxes on their lawful share of the profits on their personal income tax returns, not just on the LLC itself.
Federal Tax Identification Number: Your LLC will need to obtain a federal tax identification number, which is also known as an Employment Identification Number (EIN). An EIN is similar to an individual's social security number. You will need an EIN for your LLC as long as there is one member, even if the LLC does not have employees. For certain tax filing requirements the attorney you choose on UpCounsel can help prepare your Federal Tax ID Application, if you have not done so already.
Recurring Responsibilities and Duties for Illinois LLCs
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