Setting up a limited liability company (LLC) in Chicago requires research of local laws and regulations to ensure you are starting your business correctly. It’s especially important to understand how taxes, legal liability and formation procedures will affect your business. To make sure you are considering all you need to know, here are the top five things to think about when setting up an LLC in Chicago and the surrounding areas.

Choosing a Business Name

Making sure your business name is unique and able to register can initially feel like a daunting task. The name you choose should be specific to your business and the service or products you will provide. Generally, your business name should not contain any words that could be confused with an existing company. To check for any duplicates, search through the Illinois Secretary of State’s website for registered business names. Furthermore, include the words “LLC” or “Limited Liability Company” at the end of your business name to distinguish it from any other unrelated entities.

Registering the LLC in Illinois

Once you have established your name, you must complete the registration process. The paperwork can be found online from the Illinois Secretary of State’s website. When completing the forms, there are a handful of restrictions that you must adhere to for the registration to move forward. Such restrictions include the names being no longer than forty characters, excluding any punctuation marks, spaces or phrases. Names must not contain any illegal words, insinuate any illegal activities, discrimination or offensive terms.

Draft an Operating Agreement

Creating an operating agreement establishes internal rules and regulations for any LLC. By providing a document on what is expected from managers, members/owners and employees, potential risks are less likely to occur. When drawing up this agreement, consider the career backgrounds, ownership rights and individual responsibilities of any involved parties. Furthermore, use this agreement to outline payment procedures and voting rights, in addition to addressing what happens in the event of a business dispute.

Regulations and Compliance

Certain businesses will require you to apply for licenses and registration depending on the goods or services provided. Additionally, getting the right insurance for your property is essential, regardless of the type of business pursued. An Operating Status Certificate is also necessary, which serves as a confirmation of an LLC’s good standing with the state. This can be maintained by filing an Annual Report each year with the Illinois Secretary of State.

Legal Support

It is important to make sure all aspects of an LLC are running as smoothly as possible. This is why many companies opt for legal advisors or consulting services. Finding experienced lawyers who understand local laws in Chicago can be difficult at times. UpCounsel, however, presents a network of qualified attorneys to assist businesses with any legal affairs. From consulting services to freelance legal departments, their online lawyers are highly experienced and can provide exceptional and cost-effective services. With client ratings and reviews to view, you can be sure you are getting the most suitable lawyer for your LLC.

Topics:

LLC setup,

Chicago LLC,

LLC names