LLC in Illinois Cost: Everything You Need to Know
To set up an LLC in Illinois, costs include a $150 fee for filing your articles of organization, as well as other government and filing fees. 3 min read
To set up an LLC in Illinois, costs include a $150 fee for filing your articles of organization, as well as other government and filing fees. You can also choose to pay an attorney, an accountant, or a third-party agency to help you start your business.
Illinois LLC Overview
An LLC in Illinois is a limited liability company that has been formed in the state of Illinois. An LLC is a business entity structure that offers the simplicity that comes with a partnership in terms of taxes, allowing profits to be taxed through each member's personal income. Along with the tax simplicity, an LLC can also help to protect the owner's personal assets from debtors and creditors.
The benefits of an LLC have made it a popular structure for many small businesses. To set up an LLC, you will need to start by filing Articles of Organization with the Secretary of States' Business Services Division for the state of Illinois. To file your articles of organization, you will be required to forward them along with the $150 filing fee. If you file your Article of Organizations and fees by mail, it may take up to two weeks for the process to be complete.
When setting up a limited liability corporation in Illinois, you will have mandatory and optional costs that will be required.
- Government fees
- Fees for filing forms
- Professional service fees, such as for attorneys and accountants
- Service fees for third-party companies helping to file forms
Steps to Start an LLC in Illinois
There are multiple steps to setting up an LLC in Illinois including the following:
- Name your LLC. You must follow state naming guidelines, which require that your name include a word or abbreviation that identifies the company as an LLC. There are also some restricted words that cannot be added to the company name with a special license. Some words are prohibited altogether, such as words that might associate the company with a federal or state government agency. To make sure that your name is not taken, run it through the State of Illinois website. Once you have chosen your name, you will want to secure your domain and an email address.
- Decide on a registered agent. To handle legal papers, correspondence of the LLC, and processes of legal action through a physical address, the LLC will have to name a designated registered agent. When choosing a registered agent, you must name someone who is authorized to transact business in the state of Illinois and has a physical address. While an owner or employee can be a registered agent, the LLC itself cannot be its own agent.
- File your Articles of Organization with the State of Illinois. To file the Articles of Organization, you will need to fill them out online, mail them in, or deliver them in person. Your Articles of Incorporation will need to include the LLC information, a list of members and managers, the name of the organizer, the name of the registered agent, the effective date, and any other provisions.
- Pay the fees. Along with your Articles of Organization, you will be required to send in a $150 nonrefundable fee, plus a $100 fee if you are choosing expedited service. Payment of the fee can be made by cashier's check, certified the check, attorney's check, or a CPA's check or money order that is made out to the Secretary of State.
- Draft an operating agreement. Although an operating agreement is not a required step for starting an LLC in the state of Illinois, it is recommended to create one. An operating agreement will lay out legal documentation for how the business will operate as well as outlining the ownership.
- Obtain an Employer Identification Number (EIN). Your next step will be to file for an EIN number, which will be used to identify your company for taxes and other purposes, similar how a social security number identifies an individual. A company will use this EIN number when it files its state, federal, and local taxes as well as opening banking account related to the business. You can obtain an EIN for your company for free once your LLC has been formed by filling out forms online at https://sa.www4.irs.gov/modiein/individual/index.jsp, or you can print, fill out, and mail in the appropriate forms.
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