What are the requirements for forming a Limited Liability Company (LLC) in Illinois?
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To form a Limited Liability Company (LLC) in Illinois, there are several requirements that must be met.
Firstly, you must choose a unique name for your LLC. The name must include the words “Limited Liability Company,” “LLC,” or an abbreviation of either. It must also be distinguishable from the names of other Illinois LLCs on file with the Secretary of State.
Secondly, you must file Articles of Organization with the Illinois Secretary of State. These articles must include the name of the LLC, the address of its principal place of business, the names and addresses of its organizers or managers, and the duration of the LLC (which can be perpetual).
Thirdly, you must appoint a registered agent in Illinois who will receive legal and other important documents on behalf of the LLC. This agent must have a physical address in Illinois and be available during normal business hours.
Fourthly, you must create an Operating Agreement that outlines the rules, regulations, and procedures governing the operation of the LLC. The Operating Agreement is an internal document that is not filed with the Secretary of State, but it is recommended that LLCs have one.
Finally, you must obtain any required licenses, permits, and registrations from the state of Illinois and local governments, depending on the nature of your business.
It is important to note that while LLCs offer limited liability protection to their owners or members, they do not offer complete protection. For example, if the LLC participates in illegal activity or engages in fraud or misrepresentation, the protections of the LLC may be waived.
Furthermore, LLCs may have tax and other obligations at both the state and federal level. It is recommended that individuals seeking to form an LLC seek legal advice to ensure compliance with all applicable laws and regulations.
In conclusion, to form an LLC in Illinois, one must choose a unique name, file Articles of Organization, appoint a registered agent, create an Operating Agreement, and obtain any necessary licenses and permits. It is important to understand the limitations and potential obligations of an LLC and seek legal advice as needed.
