Select a Name for Your LLC in Step 1 The first step in creating an LLC is picking a name. The name must be distinctive and different from those of any existing Illinois-registered business entities. On the website of the Illinois Secretary of State, you may perform a company name search to see if the name you want is available.
Step 2: Submit Articles of Incorporation The next step is to submit Articles of Organization to the Illinois Secretary of State once you have decided on a name for your LLC. The $150 filing fee can be paid online or by mail. The name, purpose, registered agent, and members of your LLC should all be listed in the Articles of Organization.
Obtain an EIN in Step 3 Your LLC will receive a special nine-digit number from the IRS called an EIN, or employment identification number, for tax purposes. To open a business bank account, recruit staff, and file taxes, you need an EIN. On the IRS website, you can submit an online application for an EIN.
Draft an operating agreement as the fourth step. The ownership and management structure of your LLC, as well as the duties and rights of its members, are described in an operating agreement, a legal document. Even though it is not needed by law, having an operating agreement can assist avoid conflicts and safeguard the limited liability status of your LLC.
How long does it take for an Illinois LLC to be approved? LLC filings are normally processed by the Illinois Secretary of State in 5-7 business days. Additionally, expedited processing is offered for a cost.
What is a small LLC in relation to this?
Simply put, a tiny LLC is an LLC with fewer members and a more compact firm. A small LLC often has fewer than 50 members and generates less than $1 million in yearly revenue, although there is no legal definition of what constitutes a small LLC.
What is the annual fee in Illinois for an LLC, too?
In Illinois, an LLC must pay a yearly charge of $75. Every year by the anniversary of the founding of your LLC, the charge is payable.
So, if I have an LLC, do I need a business license? Certain types of businesses must have a state or local business license or permit to operate in Illinois. A separate business license is not necessary to operate an LLC, nevertheless. If your company need any additional licenses or permits, you should check with your local county or city government.
Finally, picking a distinctive name for your LLC in Illinois, submitting your articles of organization, obtaining an EIN, and creating an operating agreement are all required steps. Usually, the procedure takes a few weeks and costs money. Also, keep in mind that while an LLC offers liability protection, it does not prohibit your company from obtaining any necessary licenses or permissions. You can effectively set up an LLC and launch your business in Illinois by following these instructions and conducting your due diligence.