The state of Illinois is known for being business friendly, and many aspiring entrepreneurs consider launching their start-ups in the mid-western state. If you’re launching a start-up in the Land of Lincoln, you’ll likely benefit from diving into the legal landscape concerning limited liability company (LLC) formation. Although the laws are routinized for business owners, there are several important aspects of formation that require your attention.

For starters, it is important to understand that depending on the size and scope of your business, there may be different pathways to structure your LLC. This article aims to provide an overview on saving money when forming your LLC in the state, helping business owners to be aware of the legal costs associated with such. Some of the topics covered include; steps to launching your LLC in Illinois, differences between forming an LLC with attorneys and DIY formation, pros and cons of DIY formation, and recommendations for when to involve an attorney for formation of your LLC.

Steps to Launching Your LLC in Illinois

The specific requirements to form your LLC in Illinois will vary depending on the type of business, but the general steps are the same for all types of LLC formation:

First, choose a business name that complies with state regulations and is not already in use. Then, review the information on the state’s website. The Illinois Secretary of State provides comprehensive guidance for all aspects of LLC formation, including official guidelines for filing various legal documents with the state.

Next, file the articles of organization. This is the organization’s official formation document. The required information will vary based on the type of business organizational structure, but the filing fee for this document is something that all Illinois business owners must pay.

Once the articles of organization are filed, the LLC will be officially created. Depending on the amount of control the business will have over certain assets, a statement of authority may need to be filed. This statement is filed to register the LLC’s authority to enter into contracts and to contain the other rights and powers the business would have regarding certain assets.

Finally, upon completing the steps outlined above, the business owner will need to register with the Illinois Department of Revenue for a variety of taxes (depending on the type of business). All LLC members—whether members of a multi-member LLC or the sole owner of a single-member LLC—must complete the registration process. This includes filing annual reports and other documents as necessary.

Forming an LLC with Attorneys vs. DIY Formation

For business owners who are considering forming an LLC in Illinois, it may be tempting to start the process without consulting with an attorney. After all, there is an abundance of information out there, and the process of forming an LLC is fairly straightforward. However, there are both pros and cons to DIY formation.

On the positive side, DIY formation is faster and cheaper than hiring an attorney. And, with the right guidance, owners can complete the necessary steps to form their LLC without having to worry about missing any important details. However, the main downside of DIY formation is that there may be legal documents, such as ownership agreements or membership and operating agreements, that are required for the LLC to effectively manage its affairs. These documents are difficult to draft without the legal experience of an attorney, and an attorney’s fees may be significantly less than the cost of potential legal consequences down the line.

Therefore, when considering how to form an LLC in Illinois, the best advice is to look into completing the process both with the help of an attorney and on your own. It’s also important to remember that regardless of the pathway taken, the total amount of funding and energy spent can be astronomical. As such, it’s important to make sure that you have exhausted all of the resources available to you in order to understand the legal and financial loopholes involved in the process. Being well informed about LLC formation can help save a great deal of time and money, particularly for business owners who are unfamiliar with the legal details associated with LLC formation.

Pros and Cons of DIY LLC Formation

The decision to form your LLC on your own or with attorneys will depend on your personal preferences, the scope of your business, and the amount of funds you have available.


• DIY LLC formation is faster and typically less expensive than hiring a lawyer.

• If you are familiar with the legal landscape and have the necessary resources, DIY formation can be an efficient option.


• There is a greater potential for errors.

• The process of forming an LLC can be complex and is incredibly time consuming.

• DIY formation does not provide comprehensive legal advice, and you may find yourself unprepared for certain legal concerns.

• If you make errors, it could cost you more money in the long run.

Recommendation for When to Involve an Attorney for Formation of your LLC

Though it is possible to form an LLC on your own, it is usually not recommended. An attorney's help can be invaluable in ensuring that everything is done according to the law and can save you a lot of time and headache. An attorney can also provide guidance and advice for specific legal concerns you have and communicate effectively with other parties involved in the process.

Business owners should look into forming their LLC with the help of an attorney if:

• They are unfamiliar with the legal landscape.

• They want to ensure all of the necessary documents are filed properly.

• They want comprehensive advice throughout the process.

• They need assistance with obtaining the guidance they need to protect their LLC in the event of a lawsuit.

Ultimately, there are many factors to consider when launching a business in the Land of Lincoln. When deciding whether to form an LLC on your own or with an attorney, it is imperative that business owners consider the associated costs, the legal and financial requirements they must meet, and the professionalism an experienced attorney can provide. UpCounsel is an excellent tool for connecting business owners with experienced attorneys and legal counsel who fully understand the laws and regulations surrounding LLC formation in Illinois.


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