How to Form an Illinois LLC

Start an LLC in Illinois in 5 Simple Steps

Step 1: Give Your Illinois LLC a Name
Step 2: Select a Registered Agent
Step 3: Submit the Articles of Organization; Step 4: Draft an Operating Agreement
Step 5: Obtain an EIN

It is simple to form an LLC in Illinois.

To establish an Illinois LLC, you must first submit the Articles of Organization with the Illinois Secretary of State, which costs $150. You may apply both online and by mail. The Articles of Organization are the legally binding documents that establish your Illinois limited liability corporation.

STEP 1: Give your Illinois LLC a name.

The first and most significant step in forming an LLC in Illinois is deciding on a name. Make certain that the name you pick conforms with the Illinois LLC naming standards and is readily searched by prospective customers.

1. Follow the naming conventions:

The word “limited liability corporation” or one of its acronyms must be in your name (LLC or L.L.C.).
Your LLC’s name cannot include terms that may be confused with a government organisation (FBI, Treasury, State Department, etc.).
Restricted terms (e.g., bank, attorney, university) may need extra documentation and the participation of a licenced professional, such as a doctor or lawyer, in your LLC.
Your name must be unique among Illinois limited liability companies, corporations, limited liability partnerships, and limited partnerships.

STEP 2: Select a Registered Agent in Illinois

For your LLC, you must choose an Illinois registered agent. In some states, registered agents are also known as resident agents or agents for service of process.

What exactly is a registered agent? A registered agent is a person or corporate organisation that receives vital tax forms, legal papers, lawsuit notices, and other government communication on your behalf. Consider your registered agent to be your company’s point of contact with the state.

Who is eligible to be a registered agent? A registered agent must be an Illinois citizen or a company, such as a registered agent service, that is permitted to do business in Illinois. You may choose someone from your organisation, even yourself.

STEP 3: Submit the Articles of Organization for the Illinois LLC.

You must complete Form LLC-5.5 – Articles of Organization with the Secretary of State to register your Illinois LLC. You may apply both online and by mail.

STEP 4: Draft an Operating Agreement for an Illinois LLC.

Although an operating agreement is not necessary in Illinois, it is a good practise to have one.

What exactly is an operating agreement? An operating agreement is a legal document that outlines an LLC’s ownership and running processes.

Why are operating agreements necessary? A detailed operating agreement guarantees that all firm owners are on the same page and decreases the likelihood of future disagreement.

STEP 5: Obtain an Illinois EIN.

What exactly is an EIN? EIN is an acronym that stands for Employer Identification Number. EINs are nine-digit numbers provided by the Internal Revenue Service (IRS) to companies to assist them be identified for tax reasons. It is basically a business’s Social Security number.

An EIN is also known as a Federal Employer Identification Number (FEIN) or a Federal Tax Identification Number (FTIN) (FTIN).

Why do I need an EIN? An EIN is necessary in order to:

Establish a business bank account.
Filing and managing federal and state income taxes
Employ people

What if my single proprietorship already has an EIN? When transitioning a sole proprietorship to an LLC, the IRS demands a new EIN.

Where can I get an EIN? The IRS will provide you an EIN for free. Obtaining an EIN is a simple procedure that may be completed online or by mail.