How to Form an LLC in Illinois
How to Form an LLC in Illinois
- Choose a name for your LLC that is not already in use by another Illinois LLC or corporation. You can check the name availability on the Illinois Secretary of State's Business Services website.
- File the Articles of Organization with the Illinois Secretary of State. These articles include basic information about your LLC, such as the name, address, and registered agent. You can file the articles online or by mail.
- Prepare an Operating Agreement for your LLC. This document specifies how the company will be managed, how profits and losses will be divided, and how disputes will be resolved. Although Illinois does not require LLCs to have an Operating Agreement, it is highly recommended.
- Obtain any necessary licenses and permits for your business activities. Depending on the nature of your business, you may need to obtain state and/or local licenses and permits.
- Obtain an Employer Identification Number (EIN) from the IRS. This is a unique number that identifies your LLC for tax purposes. You can apply for an EIN online.
- File an Annual Report with the Illinois Secretary of State every year. This report verifies that the LLC's information is up to date and correct.
It is important to note that forming an LLC does not provide complete protection from personal liability. If you engage in wrongful or illegal behavior, for example, you could still be held personally liable. Additionally, certain professions such as law and medicine require different legal structures. It is always a good idea to consult with a licensed attorney to obtain legal advice specific to your situation.
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