How to Get Started on Registering an LLC in Chicago

Getting started on registering an LLC in Chicago can be an intimidating process for small business owners. To ensure success in business, entrepreneurs must navigate the complexities of forming the limited liability company correctly. Those who are new to LLC formation should know what entity formation entails and the steps needed to submit the application. Additionally, Chicago residents should be aware of the local regulations and the distinctive business laws specific to the Illinois area. With the right guidance, you can have a stronger grasp of the necessary steps to ensure a smooth formation and start to the LLC.

What is a Limited Liability Company?

An LLC is an abbreviated term for a limited liability company, which is a type of legal entity. LLCs offer the flexibility of a partnership or sole proprietorship along with the liability protection of a corporation. The company is made up of members, with each member owning a share of the business. This business entity is unique as it is not a tax-paying entity. While the members file taxes on their respective income, the LLC itself does not. Additionally, LLCs offer other benefits such as limited personal liability, added legitimacy to a business, and the pass-through of business profits.

The Process of Forming an LLC in Chicago

Before drafting the articles of organization, the business owners must first register a business name. When forming the name of the business, the owners must comply with the LLC laws of the State of Illinois, otherwise the Secretary of State will reject the filing. The business name must be distinguishable from any other recognized LLC, and the owners are required to use either LLC or Ltd. Company as a suffix to the name. After submitting the filing and paying the registration fees, the Secretary of State will send an approval email.

Once the name is approved, business owners should focus on forming the articles of organization. This document contains information about the LLC including the name, members, and registered managers who will manage the business. Additionally, information about the company such as how long it will remain in operation and the purpose of the company must be included. The articles of organization must be completed and filed with the Secretary of State and proper fees must be paid in order to officially register the business.

After filing the articles of organization, the owners should also obtain an Employer Identification Number (EIN) from the IRS. This number is necessary to open a business banking account and file taxes. Business owners may also be required to obtain certain licenses and permits depending on the type of business they operate. Businesses that require a license or permit may also be subject to further regulation.

Lastly, it is important for a business owner in Chicago to become fully aware of the state of Illinois business tax requirements. Entities must register for a state tax ID number, and most businesses in Illinois are required to file an annual report.

Getting Legal Support from Business Lawyers

Since formation of an LLC involves adhering to numerous laws, getting legal assistance from experienced business lawyers is advisable for many small business owners. A qualified attorney can provide timely advice to navigate state, county, and city laws. Additionally, a lawyer can verify information about the company’s registration information to make sure the business is compliant with state laws. Experienced attorneys are also well-versed in handling other issues such as drafting contracts, filing tax documents, providing business advice, and other day-to-day operations.

Those located in Chicago who are seeking legal counsel to assist with the process of forming an LLC should consider using UpCounsel. UpCounsel allows business owners to connect with experienced attorneys who have a wealth of knowledge regarding local and state regulations. They provide services for a variety of legal needs from a one-time consult to setting up a full freelance legal department. This platform can help ensure that entrepreneurs have access to the highest quality legal services and quality attorneys.

Topics:

registering an LLC,

articles of organization,

Employer Identification Number