A common business form is an LLC, or limited liability company, which offers personal liability protection to its owners while letting them take use of a partnership’s or a sole proprietorship’s advantages. The creation of an LLC is a fantastic choice if you want to launch a business in Illinois. This is how you do it:
Select a Name for Your LLC in Step 1 To create an LLC in Illinois, you must first decide on a name for your company. Your business name must be original and not being used by another Illinois corporation. On the website of the Illinois Secretary of State, you can determine whether the name you want is available.
Step 2: Submit Articles of Incorporation You must submit Articles of Organization to the Illinois Secretary of State in order to formally establish your LLC. Online or mail-in filing is an option. There is a $150 filing fee.
Obtain an EIN in Step 3 Employer Identification Numbers, or EINs, are special numbers given out by the IRS to identify your company for tax-related purposes. Even if you don’t intend to recruit staff, your LLC will still require an EIN. On the IRS website, you can submit an online application for an EIN.
Step 4: Draft an Operating Agreement
Although it is not necessary by law, it is highly advised for LLCs to draft an Operating Agreement. The ownership and management structure of your company, as well as the duties and rights of each member, are described in this document. In the future, disputes may be avoided with its assistance.
Another query: What qualifies as an LLC? Since LLCs are thought of as different legal entities from their owners, the business is able to contract, own property, and bring or receive legal action in its own name. For taxation purposes, LLCs are also regarded as “pass-through” entities, which means that the business’s gains and losses are transferred to the owners’ individual tax returns. How to Renewal Your Illinois LLC
LLCs must submit an Annual Report to the Secretary of State every year in the state of Illinois. By the first day of the LLC’s anniversary month, the report is due. There is a $75 filing fee. The LLC may be dissolved if the report isn’t submitted. Is it Possible to Form an LLC Without a Business? Yes, technically. In order to hold and manage assets or to safeguard intellectual property, you can create an LLC. To prevent confusion or fines, it’s crucial to let the IRS know if you aren’t engaging in any business activity. How long does it take for an Illinois LLC to be approved? Depending on the type of filing, Illinois LLC creation processing times vary. Your LLC will normally be approved within 24 hours if you file online. It may take up to 10 business days for your LLC to be approved if you file by mail.
No matter what state you’re in, including Illinois, getting an Employer Identification Number (EIN) is free. EIN applications can be submitted directly through the IRS website, by mail, or by fax.
Yes, most firms in Illinois must first secure a license or permit from the state or local government in order to open for business. Depending on the kind of business you have and where you intend to operate, there may be different criteria for obtaining a business license in Illinois. However, establishing an LLC in Illinois does not grant you a company license right away. To lawfully run your firm, you will still need to secure the relevant licenses and permits.