File an LLC in Illinois Stress-Free

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Benefits of opening an LLC in Illinois

There are many reasons to form an LLC in Illinois. Here are the main ones:

Legal protection in case of bankruptcy or lawsuits

Separation of personal and business assets 

Tax benefits: flexibility & pass-through taxation

Increasing credibility and trust for your business

How to form your Illinois LLC with Tailor Brands

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Choose a registered agent for your LLC

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How to start an LLC in Illinois in 5 steps

Creating an LLC can feel daunting, but it is much easier when you have all the details you need from the start. That includes knowledge, support, and help, too, so you can get things moving in the right direction. Fortunately, Illinois can be a good place to start an LLC, so if you’re in that state or thinking about relocating there, you may be in luck. Illinois is a business-friendly state, with reasonable requirements and regulations for starting an LLC.

The Illinois Secretary of State website can help you get organized and file so you know which forms to use and feel confident that you’re following the right legal pathways. You’ll be able to look through the checklist and download the required form right from the site. You can also browse the guide for starting LLCs in the state to ensure you’re not overlooking something specific. That’s a great way to reduce your stress and make it easier for you to get your company up and running quickly.

The cost of filing your Articles of Organization in Illinois is $153.38, which includes the state filing fee and a processing fee. While that’s more expensive than some states, it’s also considerably less than what several other states charge. You’ll likely find most of the business fees in the state pretty reasonable, and the regulations aren’t overly restrictive or complex, either. It’s pretty straightforward to get started, and you can have your company created and operating in no time. Here’s what you need to know form an LLC in Illinois.

There are main five steps you need to take:

  1. Name your Illinois LLC
  2. Choose your registered agent
  3. File articles of organization
  4. Create an operating agreement 
  5. Apply for an EIN

Each step is discussed in more detail below.

Step 1: Name your Illinois LLC

What do you plan to call your company? Choosing a name for your Illinois LLC is the first step toward making it a reality. Keep in mind that you need to choose something that works for you and your customers, and something that hasn’t already been used. Take the time to consider the name as a URL, since running words together without spaces sometimes creates the suggestion of a word or name that won’t work for you.

Step 2: Choose a registered agent

A registered agent is a requirement of LLC creation in all 50 US states. Sometimes this entity is also called a resident agent or something similar; Illinois uses the term registered agent. There are three specific features of a resident agent. These are:

If you choose, you can designate anyone who fits the above criteria to be your registered agent. What if that person is sick or on vacation when something important comes in? If you use our registered agent services, you don’t have any of those worries.

Depending on your role with the company and other factors, you may find it much easier to choose a registered agent service. That’s one thing off the list that you don’t need to worry about. You’ll still be kept in the loop if there are issues with your LLC, but you won’t have to be the initial point of contact for paperwork and legal forms.

Step 3: File articles of organization

After you’ve secured the name of your Illinois LLC, you’ll want to file your Articles of Organization. These are the formal documents required to legally establish your LLC with the state. They detail the rights and responsibilities held by each member of the LLC and explain the duties, powers, and liabilities those members have to each other and the LLC’s customers. You can use templates to create the articles, and then you’ll pay your filing fee and submit the paperwork.

State fees

The filing fees for registering your LLC in Illinois are $153.38, which includes $150 state filing fee for the Articles of Organization and a $3.38 processing fee. If you need a business license, that will cost extra, but not all business entities need them. Illinois’ fees are higher than some states but lower than others, making them pretty standard for creating an LLC. The cost of the state business license can vary depending on what industry you’re in. If you’re located in the city limits of Chicago, you may also have licensing requirements to comply with there.

Requirements

There is specific information that has to be included in your Articles of Organization. These include the LLC’s name and physical address in Illinois, along with the effective date of the LLC. This date has to be within 60 days of filing. You’ll also need the name and address of the registered agent, and the LLC’s purpose. If the operating agreement has a dissolution date, you’ll want to include that, as well. If you’re filling out the form, you need to include your name and address.

Think of your Articles of Organization as a charter. They act as the overall agreement for your company, and they explain the purpose and the way the company plans to operate. The state also wants information on the people operating your LLC, so they can reach the right people if there are problems or concerns. You want to make sure everything in your Articles of Organization is filled out correctly so you have peace of mind and keep your LLC up and running efficiently.

How to file

It’s easy to file your Illinois LLC documents online, but you can also mail the forms in if that works better for you. You have two different options, so you can choose the one that meets your needs. While some states also accept your Articles of Organization by fax, email, or in person, Illinois requires either online or mail-in delivery. If you want to get started on opening up your business faster, you may want to choose the online option for filing with the state.

Step 4: Create an operating agreement

Step four in creating an Illinois LLC is the development of your operating agreement. This is the agreement that provides an outline of the ownership of your LLC, along with the operating procedures. It’s a legal document, and it’s binding on the business and the people it relates to. In essence, it ensures that every one of the owners of the business is on the same page when it comes to the purpose and direction of the LLC.

While the operating agreement doesn’t guarantee that everything will always be harmonious, it can help to reduce disputes and limit future conflicts. Decreased risk of conflict and other potential issues means a stronger and healthier company for the long term, which is a big benefit for any business trying to get started and develop success.

If you’re trying to create a multi-member LLC or a series LLC (where different company divisions operate like separate entities), it’s extremely important to create a strong operating agreement where everything is thoroughly covered. That gives you and any business partners a lot more peace of mind, and it also helps you legally work through any concerns or discrepancies you might have in the future. It’s a way to protect your company, your business partners, and yourself from misunderstandings.

Illinois doesn’t require an operating agreement for your LLC, so there aren’t any specific requirements about what should be included in one. But there are some general areas of information you can consider that make logical sense in this type of agreement. For example, consider including basic information on the overall organization. Who owns it, when it was created, and the names of all the members are important information. So is the ownership structure since it may be unequal by design.

You can also address management issues, any capital contributions, and the voting rights and responsibilities of the members in your operating agreement. If there are multiple owners, they generally all have a vote if there will be changes made to a business. Being clear on who’s managing the LLC and how everyone’s votes are handled makes it easier for you and other members of your company to avoid frustration and confusion, as well as conflict. Not all voting powers may be equal.

Another area you want to add to your operating agreement is what will happen if you want to make changes to the membership structure in the future, as well as how the company would or could be dissolved. Distributions are important, too. When distributions are given out, who receives them, and how they are given all matter. Are there any specific factors that could affect distributions? Put those into the operating agreement, as well.

Step 5: Apply for an EIN

Using an EIN (employer identification number) is a requirement from the IRS, so it’s not something you want to ignore. When you develop an LLC, that entity must have an EIN to pay its employees properly. The IRS will assign your LLC this 9-digit number when you file for it, and it doesn’t cost you anything to request one. It’s very much like a Social Security number for a business—and it’s not just for paying employees.

There are other reasons you’ll need an EIN, such as when you open a bank account for your LLC or file your state or federal taxes. Unless they want to hire employees, individuals generally don’t need EINs, even if they’re in business. You’ll likely find that you can’t open a bank account or a line of credit for your LLC without this important number. It’s quick and easy to get one from the IRS, so it’s vital to take the few required minutes to make sure you get one.

Applying for an EIN is one of the services we provide, so you don’t have to handle it yourself if you don’t want to. It’s also something that you can file for on your own, if that’s how you’d prefer to get the number. Since it’s free and easy to get, some people who create an Illinois LLC file for it themselves in the course of doing other things to get their business off the ground.

The EIN doesn’t take long to get if you fill out the correct form with your company’s information. You can choose to get your EIN online or through the mail, whichever is most convenient for you and your company.

Illinois LLC Formation: The Basics

This step-by-step guide details the steps you need to name your Illinois LLC properly by searching if it is unique.

There are different costs to form an LLC in Illinois and maintain it. We’ve listed all of them in this post.

Appointing registered agent is a mandatory step in your LLC formation process in Illinois – learn more about it.

This post details which licenses and permits your Illinois LLC may require and how to obtain them.

Why is Tailor Brands the Best LLC Service in IL

We love helping people start their business. We take care of the LLC filing and offer additional services so you can focus on launching and growing your business, while remaining compliant with state regulations.

Here’s why people choose to form their LLC with us:

Easy and intuitive

Our products are user friendly, all you need to do is answer a few questions about your business and let us take care of all the rest.

Friendly dashboard

Our platform is easy to use and is optimally designed to guide you through your LLC formation process and business journey.

Additional services

We offer more products to help you set and manage your business like registered agent, business licenses, and annual report.

Real Tailor Brands reviews, from real business owners

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Form a Illinois LLC, Hassle-Free

This portion of our website is for informational purposes only. Tailor Brands is not a law firm, and none of the information on this website constitutes or is intended to convey legal advice. All statements, opinions, recommendations, and conclusions are solely the expression of the author and provided on an as-is basis. Accordingly, Tailor Brands is not responsible for the information and/or its accuracy or completeness.