Starting a limited liability company (LLC) in Chicago comes with unique considerations that you won’t have to factor in when starting a business in any other area of the United States. LLCs are very popular business entities used by entrepreneurs to minimize their liability while creating separate legal entities legally distinct from their own names. If you are interested in setting up an LLC in Chicago, it is important to become familiar with the specific requirements from the state.

Setting up an LLC in Chicago begins with the same steps you would take to form any business: choosing a name, selecting an LLC type, making a filing, and registering with the Secretary of State. You must then factor in some of the specific Chicago laws and regulations related to LLC formation. This is when working with an experienced attorney and/or business advisor can help. Following are the topics you'll need to consider and discuss with experts as you set up a Chicago LLC.

Choosing a Company Name

When selecting a company name for your LLC in Chicago, it is important to take into account the regulations from the Illinois Secretary of State. The name must meet the following requirements:

- It must not include language that implies you are forming something other than an LLC

- It must not include words that are considered offensive

- It must not include restricted words, such as bank, attorney, or university

- It must be distinct from any other business already in the Secretary of State’s records

If you’re having trouble coming up with a suitable name, the state has some guidelines on how to create Alabama LLC names.

Selecting an LLC Type

It is important to know the difference between the two LLC types when setting up an LLC in Chicago:

- A Standard LLC is the most basic type. This LLC is governed by the Illinois Limited Liability Company Act and annual franchise fees and taxes are due.

- A Series LLC combines multiple LLC entities into a single LLC. This type allows for the creation of “series” of LLCs under the larger LLC, each with its own assets and liabilities. This type of LLC is governed by the Uniform Series LLC Act.

Making a Filings and Registering with the Secretary of State

Once you have chosen a name and an LLC type, you will need to file the Articles of Organization with the Illinois Secretary of State. This filing creates the LLC legally. You will also need to register with the Secretary of State in order to do business in the state and obtain an LLC number. It is important to note that it is also necessary to file an Annual Report each year which updates the LLC’s information.

Understanding Chicago Regulations

In addition to the state regulations, the City of Chicago has some specific requirements that must be taken into account when setting up an LLC.

- First, you are required to have your registered agent located in Chicago.

- Second, your LLC may need to obtain special licenses and permits. These can include a business license, vendor’s license, retail food establishment license, and more.

It is important to be aware of the regulations related to LLCs in Chicago so that your LLC is properly set up from the get-go.

Conclusion

Starting an LLC in Chicago requires careful consideration of both the state and local regulations. Understanding the differences between the two types of LLCs, the proper steps to take when submitting the Articles of Organization to the Secretary of State, and the permits and restrictions that are specific to the City of Chicago can help ensure your LLC is legally sound and ready to operate successfully.

Working with an experienced attorney or business advisor familiar with Illinois LLCs can help to ensure that the process of setting up and running your business in Chicago goes smoothly.

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