How To Form an LLC in Illinois in 7 Steps

To set up your Illinois LLC, you must file the articles of organization and pay a $150 fee. If you want to reserve your business name prior to filing, there is a $25 fee. Each year after your initial year of formation, you file an annual report and pay a $75 annual report fee.

The fee for an LLC filing in Illinois is $150.

To keep your LLC in good standing, you must file an annual report of your business operation each year you are in business. The filing fee for the annual report is $75.

Single-member LLC. A single-member LLC is an LLC with one owner or member. A single-member LLC is similar to a sole proprietorship, where the profits of the LLC go on the owner's individual income tax returns. The filing requirements are the same for a single-member LLC as a multi-member LLC.

Multi-member LLC. An LLC with more than one owner or member is a multi-member LLC. A multi-member LLC is similar to a limited partnership where the LLC profits go on the individual owners' tax returns.

Professional LLC. A professional limited liability company, called a PLLC, is structured for professional services like lawyers, doctors, accountants, etc. If your business requires a separate license (doctor, lawyer, etc.), you must obtain a copy of that license from the Illinois Department of Financial and Professional Regulations and include that license in your articles of organization.

Low-Profit Limited Liability Company (L3C). Illinois recognizes the low-profit limited liability company (L3C), a variation on the LLC. This version is only available to for-profit entities whose primary purpose is to achieve a socially beneficial objective. The LLC is allowed to make a profit. However, the primary goal of the L3C should be charitable or educational.

Series LLC: An LLC that contains within it several individual LLCs that are subsets of the business, such as a property management company with multiple rental properties. You must complete a Certificate of Designation (Form LLC-37.40) for each series you want to set up. A certificate of designation may only be filed after the parent LLC has been created.

Articles of organization is the document establishing your Illinois LLC. A copy of the articles of organization proves that your LLC is authorized to do business in Illinois.

You may need to show the LLC articles of organization to your bank, lender, or state licensing board. You can request copies of your articles of organization from the Secretary of State.

Illinois issues a certificate of good standing, which verifies your company complies with registration and tax requirements. There are certain situations where you may need one, such as when applying for government funding, applying as a foreign LLC, or getting financing. A certificate of good standing is $25 and can be ordered online or requested by mail.

To set up an Illinois limited liability company, you will need the following:

• An acceptable LLC business name
• An Illinois registered agent
• An Illinois registered address
• Completed articles of organization
• Payment of the $150 filing fee

Small business owners recognize the many benefits an LLC business structure offers, which include:

• Limited personal liability for members' personal assets for business debts and lawsuits
• Fewer reporting and recordkeeping requirements than other kinds of entities, including corporations
• Avoiding double taxation if taxed as a pass-through entity
• Special types of LLCs, such as low-profit LLCs, professional LLCs, and series LLCs

To keep your Illinois LLC in good standing, you must file an annual report and pay a yearly fee of $75 to the Secretary of State. Keep your business and tax filings up to date.

No. The articles of organization is the document establishing the LLC in Illinois. It is a public record. On the other hand, an operating agreement is a private company document. It sets forth the rules and provisions for managing the company's operations. Although Illinois does not require an operating agreement, it is helpful to have one for running your business.

If your LLC would like to conduct business using another trade name, you can file an Application to Adopt, Change, Cancel or Renew an Assumed Name (Form LLC-1.20). There is also a filing fee which is determined as follows:

• $150 for each year or part thereof ending in 0 or 5
• $120 for each year or part thereof ending in 1 or 6
• $90 for each year or part thereof ending in 2 or 7
• $60 for each year or part thereof ending in 3 or 8
• $30 for each year or part thereof ending in 4 or 9

You must renew the assumed name every five years.

Certain kinds of businesses must have a license with the State of Illinois. The state has information on business license registration. Check with local government agencies about local business licensing. Chicago has its own business license regulations for companies operating within the city.

Yes. You can file your Illinois articles of organization online by emailing them to the address on the form and setting up a payment account.

You can mail LLC applications to:

Secretary of State
Department of Business Services
Limited Liability Division
501 S. Second St., Rm. 351
Springfield, IL 62756

Or walk-in your documents at two locations:

Springfield office:

501 S. Second St., Rm. 350
Springfield, IL 62756

Chicago office:

69 W. Washington St., Ste. 1240
Chicago, IL 60602

Yes. Many LLC owners use a registered agent service company to draft and file articles of organization, serve as a registered agent, and maintain your LLC's good standing.

Even though you can be your own registered agent, there are many benefits to using a professional registered agent service company, such as the following:

• Keeping business disputes confidential. Your agent is the contact for your business operations. They accept service of process at their address, not yours. You keep any lawsuits away from your business and customers.
• Maintaining privacy. The articles of organization list your agent's address and are part of the public record, so your home or business address is kept private.
• Assisting your business. Your agent forwards your mail and helps with LLC compliance. They remind you of important filing deadlines to avoid penalties and losing your corporate status. If you need a copy of your articles of organization or a certificate of good standing, they can help you.
• Availability. Your agent must be available to accept service of process during regular business hours. You may not have an office or employees available to accept service of process or legal documents.

If your form your LLC under state law in Illinois, it is a domestic LLC. If you form an LLC in another state and wish to do business in Illinois, you are a foreign LLC and must register with the Illinois Secretary of State.

If you want your Illinois LLC to do business in another state, you register as a foreign LLC. Contact the Secretary of State's office for the registration requirements in that state. You must also do the following:

• Request a certificate of good standing for your LLC issued by the Illinois Secretary of State.
• Check if your Illinois business name is available in the new state by doing a name search. If your name is unavailable, you may need to file a trade name, fictitious name, or DBA ("doing business as").
• File an application to do business as a foreign LLC and pay the state fee.

A foreign LLC is an LLC registered in another state. If you are registered in another state and want to do business in Illinois, your LLC will need to file an Application for Admission to Transact Business (Form LLC-45.5) with the Secretary of State website and pay a $150 filing fee.

To dissolve your LLC, you must follow all dissolution procedures outlined in your LLC operating agreement, if you have one. Next, you close all business and tax accounts. Finally, you file a Statement of Termination (Form LLC-35.15) with the Secretary of State and pay a $5 filing fee.

You may have heard of an anonymous LLC, but Illinois state law does not permit them. An anonymous LLC does not disclose the LLC's member names in the articles of organization which is a public record. Only Delaware, Nevada, New Mexico, and Wyoming have anonymous LLCs.