A series LLC in Illinois is a form of LLC that offers its owners and members unique liability and tax advantages. The series LLC is made up of a master LLC and one or more sub-series that branch out of it.
Beginning your own series It is not need to be tough to form an LLC in Illinois. It’s easy with our step-by-step instructions!
Identify Your Series LLC
Select a Registered Agent and file the Articles of Organization and the Certificate of Designation.
Make an Operating Agreement for a Series LLC.
Get an EIN.
An illustration of how a series L L C permits its members to split a “parent” L L C’s assets and activities into a number of “child” series.
Table of Contents
Step 1: Create an Illinois Series LLC.
You should know the answers to the following questions before naming your series LLC:
What are the legal requirements for naming an Illinois series LLC?
What are the standard name guidelines for a series LLC?
Is my company’s name accessible in the state of Illinois?
Is my company name accessible as a URL, and if yes, how can I get it?
1. Series LLC name regulations differ per state. In Illinois, you must follow typical LLC naming requirements, and the complete name of the parent LLC must be included in the name of each child series.
Follow the Illinois LLC Naming Regulations:
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 organization.
Restricted terms (e.g., bank, attorney, university) may need extra documentation and the participation of a licensed professional, such as a doctor or lawyer, in your LLC.
The offspring series’ name must include the parent series’ name.
2. Consider the following basic guidelines for making the titles of your series more identifiable, unified, and clear:
Include the phrase “protected series” in the name of each organization.
The parent LLC should be named in a manner that differentiates it from the kid series.
Include the parent LLC’s entire name in the name of each kid series.
The name of the asset should be included in the name of the kid series. This gives the public and creditors a better view of the assets.
3. Does my company name exist in Illinois? Check the Illinois Secretary of State’s “Cyberdrive Illinois” website to see if the name you desire isn’t already taken.
Is my company’s name accessible as a URL? We propose that you investigate if your company’s name is accessible as a web domain. Even if you don’t intend to create a company website right away, you may wish to purchase the URL to prevent others from doing so.
Step 2: Select a Registered Agent for Illinois Series LLC.
You must name a Registered Agent for your Illinois series LLC. The parent LLC’s Registered Agent must be the same for each child series.
What exactly is a Registered Agent? A registered agent is a person or corporation that agrees to deliver and receive legal documents on your series LLC’s behalf. Service of process of legal action (if you are sued) and state filings are examples of such paperwork.
Who is eligible to be a Registered Agent? A registered agent must be an Illinois citizen or a company allowed to do business in Illinois. You may choose someone from your organization, even yourself.
Step 3: File the Articles of Incorporation.
You must submit the Articles of Organization with the State of Illinois to register your series LLC. This may be done online or in the mail.
You must submit your Certificate of Designation for each child series after submitting the Articles of Organization.
To subsequently add one or more child series, the Articles of Amendment must be completed. Remember to provide another Certificate of Designation as well (see below).
Step 4: File the Series LLC Certificate of Designation.
After filing your Articles of Organization, you must complete a Certificate of Designation for each child series.
Step 5: Draft an Operating Agreement for a Series LLC.
When forming a series LLC in Illinois, an operating agreement is necessary. The operating agreement is not required to be registered with the state.
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? The operating agreement for a series LLC in Illinois is crucial since it allows for the series’ creation and describes the series’ activities and structure.
Step 6: Get an EIN
What exactly is an EIN? A corporate entity is identified by its Employer Identification Number (EIN) or Federal Tax Identification Number. Each of your series LLC’s offspring series will need an EIN.
Why do I need an EIN? An EIN is necessary for the following activities:
To establish a commercial bank account for the firm
In terms of federal and state taxation
To recruit workers for the firm
How can I get an EIN for my LLC series? The IRS does not have precise procedures for obtaining an EIN for a series LLC’s child series. For each subsequent EIN, experts recommend utilizing the name of your series LLC coupled with the name of the child series.