Forming an LLC in Illinois
Forming an LLC in Illinois in 7 easy steps
- To being with, your LLC must have a name. You can not pick just any name, since you must avoid trademark violations and stay away from names that are already used by other LLC’s. You must also adhere to certain name restrictions when forming an LLC in Illinois. You are not allowed to use the terms “Incorporated”, “Corporation”, “Corp.”, “Co.”, “Inc.”, “Ltd”, “Limited Partnership” or “L.P.” in the name of an LLC. You must also stay away from the words “fiduciary”, “trust” and “trustee”, since they can only be used by corporations that complies with Section 1 9 of the Corporate Fiduciary Act. The words “bank”, “banking” and “banker” can only be used by corporations that complies with Section 46 of the Illinois Banking Act and are therefore prohibited for LLC’s. Last but not least, you must include an LLC identifier in the name of your LLC, such as “Ltd Liability Co” or “LLC”.
- Illinois state law does not require you to hire an attorney when forming an LLC. It is however advisable to let an attorney take a look at your Operating Agreement, since faulty Operating Agreements easily lead to tax problems for LLC’s.
- Proceed to the Illinois State filing office where you will file the Articles of Organization for your LLC. The minimum LLC filing fee is quite hefty in Illinois, $500.00. (For 20 business days.)
- Arrange an Organizational Meeting where the members (owners) of the LLC formally adopt the Operating Agreement.
- When you have gotten this far, it will be possible to apply for a Federal Employer Identification Number (FEIN) for the LLC.
- Get a company bank account.
- Decide in which cities and counties you wish to conduct business and apply for any necessary business licenses and permits.
Maintaining an LLC in Illinois
The LLC must hand in an annual report and pay a report fee each year. The report fee is $75.00 and the report is due prior to the month of original filing each year.
