How to Start an LLC in Illinois

A limited liability company in Illinois provides owners of the company with the ability to pass their portion of the company's profits and losses to their personal income tax return. Starting an LLC in Illinois is accomplished by filing formation documents with the state. LLCs in Illinois give members of the company personal asset protection from company debts and liabilities, as well as operational flexibility in terms of choosing the company's management structure. The state of Illinois does not allow the creation of an LLC for insurance or banking ventures, as explained by the State of Illinois Business Portal website.

Instructions

1. Check name availability with the Illinois secretary of state. Visit the Illinois Secretary of State website to confirm business name availability online. This will ensure the name of your Illinois LLC is not in use by another entity that is registered with the Illinois secretary of state. Include the phrase "limited liability company" in the legal name of the Illinois LLC, or the appropriate abbreviation of the phrase. Avoid using terms such as "corporation," "incorporated," or "bank," in the legal name of the Illinois LLC.

2. Visit the Illinois Secretary of State website in order to print fill-in-the-blank articles of organization online. If you lack Internet access, go to the Illinois Secretary of State's office in the Howlett Building, Room 351, Springfield, Illinois. Call the Illinois Secretary of State at 217-524-8008 to have articles of organization sent by mail.

3. Fill out the articles of organization. Provide information about the Illinois LLC such as the legal name and address of the company, as well as the purpose for starting the Illinois LLC. Indicate the name and physical address of an adult or business that will accept the Illinois LLC's legal and other business documents. Supply the name and address of each person or business that is responsible for organizing and filing the Illinois LLC's articles of organization with the Illinois Secretary of State.

4. Submit the completed articles of organization to the Illinois Secretary of State. Mail the articles of organization to the Illinois Secretary of State, or hand deliver the articles of organization to the Illinois Secretary of State's office. As of 2010, it costs an Illinois LLC $500 to file articles of organization with the Illinois Secretary of State.

5. Execute an operating agreement for the Illinois LLC. There are no specific guidelines offered by the State of Illinois in terms of creating an operating agreement. This allows an Illinois LLC to tailor the company's operating agreement to meet the specific needs of the company. Include provisions such as how the company will divide its profits and losses among the members of the business, as well as whether the company will be managed by its members, or by non-members. Maintain the Illinois LLC's operating agreement at the company's business location.

6. Obtain an employer identification from the Internal Revenue Service. Illinois LLCs can apply online using the IRS website, or by calling the IRS at 800-829-4933. Provide information describing the nature of the Illinois LLC's business activities, and the number of people who work for the company. Include the name, address and Social Security number of a member of manager of the Illinois LLC. The IRS will issue an EIN to the Illinois LLC at the conclusion of the online or telephone session.

References

• Citizen Media Law Project: Forming an LLC in Illinois
• Legal Zoom: Illinois LLC
• Limited Liability Company Center: How to Form an Illinois Limited Liability Company

Resources

• Cyber Drive Illinois: Limited Liability Company
• State of Illinois Business Portal: Step by Step Guide to Starting a Business in Illinois