LLC in Illinois: Everything You Need to Know
An LLC in Illinois is among the least complex of the many business structures in the state. In comparison to S and C corporations, LLCs have a structure that is fairly flexible.3 min read
An LLC in Illinois is among the least complex of the many business structures in the state. In comparison to S and C corporations, LLCs have a structure that is fairly flexible. Some of the perks that owners of LLCs enjoy include limited liability, pass-through taxes, and the legal protection of personal assets.
Steps in Forming an LLC
There are five steps in the process of forming an LLC. These steps are as follows:
- Select a name for your limited liability company.
- Choose an individual or business to act as the registered agent.
- File the Articles of Organization.
- Make an Operating Agreement.
- Obtain an Employer ID Number.
Guidelines in Choosing a Name for Your LLC
The first thing you should do is conduct research to make sure you choose an appropriate name for your LLC. This name should be relevant to your LLC's industry, and the name should be easily searchable for the average person.
The entity name needs to include the words "Limited Liability Company" or an abbreviation. LLC and L.L.C. are a few examples of abbreviations.
If you want to include a restricted word in the name of your LLC, you will need to fill out more paperwork. To have your request to include a restricted word approved, you may be required to have a licensed individual join your LLC as a member. "Bank," "university," and "attorney" are some examples of restricted words.
Prohibited words cannot be included in the name of your LLC no matter what. "Secret service," "treasury," and "FBI" are a few examples of prohibited words. Words that are typically seen in the names of government agencies tend to be prohibited.
Perform a Name Search
Do a name search on the website of the State of Illinois to make sure the name you've selected for your LLC is original. You should also check to make sure a domain name is also available for your domain name. It is recommended that you buy a domain name for your LLC as soon as possible, even if you're not going to start working on your website today.
You should also keep the professional email address in mind when selecting a name for your LLC. You can sign up for a professional email for your LLC with the help of Google Apps. A professional email will have the domain name "@yourcompany.com."
Many people find the requirements for naming an LLC fairly confusing. The main rules you should keep in mind are to select a name that is original and includes a few of the required words. You can check your LLC's name for originality by submitting a paper form through the mail or by checking the website of the Secretary of State.
File the Paperwork
You can file the form LLC-1.15 to reserve a name. You must submit this completed form to the Secretary of State Department of Business Services. The completed application should be accompanied by the required filing fee, which is $300. The application should include the name you want to reserve and information about the applicant. For example, the name, address, signature, and title of the applicant should all be included.
Unlike in many other states, the abbreviations "Co." and "Ltd." are not permitted in the state of Illinois for an LLCs name. Names also cannot include "Corporation," "Inc.," "Ltd.," "Limited Partnership," "Corp.," or "L.P."
It costs $5 to file a cancellation of a reserved name for an LLC. An expedited request costs an additional $50. The filing fee for a transfer of reserved name is $25, and an expedited request will cost you an additional $50. You can fill out a form to adopt an assumed name. The expedited fee is $50.
An application for changing an assumed name costs $25, and the additional fee for an expedited request is $50. You can cancel an assumed name for a filing fee of $5, and an expedited request costs $50 more.
The application for renewing an assumed name for an LLC costs $150 and $50 for an expedited request.
If a limited liability company has been administratively dissolved in the state of Illinois, the name cannot be used by another corporation or LLC until three years after the date when the notice of dissolution was issued.
If you need help with an LLC in Illinois, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Stripe, and Twilio.