8 Things You Need to Know About Forming an LLC in Illinois
Brad Smith • October 25, 2019
If you’ve decided that the business structure
you want to start in Illinois limited liability company, you have some decisions to consider.
Limited liability companies are suitable for nearly any type of business besides those in the banking or insurance industries.
An Illinois LLC requires at least eight things you need to know. Here's what you'll need to know about forming an LLC in Illinois:
1. You Need To Draft Articles Of Organization
According to the state of Illinois, a business commences to exist when articles of organization are filed with the Department of Business Services. The articles must contain:
- Limited liability company name
- Address of the principal place of business
- Effective date of the Articles of Organization
- Name of the registered agent and address of registered office
- LLC purpose
- Term of existence
- The names and business addresses of the initial managers or any member having the authority of manager.
2. You Need To File A Fee
Each LLC filing must be accompanied by a fee.
In late 2017, the state reduced many of the LLC filing fees.
“This is a business-friendly law that significantly reduces the cost of forming and maintaining a
Limited Liability Company in Illinois,” Secretary of State Jesse White said.
3. You Need To Determine Your Liability
Arguably the greatest benefit of an LLC is that it is a limited liability corporation. This means that your personal assets are protected and are considered distinct from your business.
Forming an LLC helps you mitigate risks for those assets.
4. You Need To Decide How To Pay Taxes
You have several choices about how to pay taxes
for your LLC in Illinois.
For federal income tax purposes, the LLC may be considered a sole proprietorship, a partnership, a corporation, or a subchapter S corporation.
Read this post
from the QuickBooks Resource Center to help you better understand how you’d like to pay your taxes.
5. You Need To Decide How To Maintain Your Business\
Annual meetings are not required, nor does the state dictate recordkeeping requirements.
6. You Need To Decide Whether You Want Outside Investments
The QuickBooks Resource Center says it’s difficult for LLCs to obtain outside investment. LLCs can’t be traded on the stock exchange, and investors usually shy away from them in favor of corporations.
7. You Need To Think About The Long Term
In Illinois, an LLC remains intact despite an owner’s death. Arrangements should be made to discuss succession of the organization when a member leaves or dies.
8. You Should Create An Operating Agreement
An operating agreement
is unnecessary to create an LLC in Illinois. However, most experts agree it would be wise to create one.
Operating agreements are for internal purposes and detail the business’ financial and functional decisions with rules, regulations, and provisions.
If this post has provoked more answers than questions, please contact us today to help you get started with your new LLC in Illinois.
For more resources, visit:
Interested in Working With Us?
If you need help with estate planning or any other legal concerns, we are here for you. Don't hesitate to contact our firm directly for assistance. Our dedicated team is ready to provide support and guidance to you and your loved ones during important life transitions.
Whether you're ready to schedule a strategy session to discuss your specific needs or if you're interested in exploring our wide range of complimentary guides and additional resources, we encourage you to get in touch with us.
With licensed attorneys and offices located in both Illinois and Missouri, we are well-equipped to serve clients in these regions. Reach out to us today and let us leverage our expertise and care to guide you through the legal process.
Helpful Guides
Begin your journey by taking advantage of our collection of complimentary guides.
Online Documents
Simple & Convenient, Cost Effective, Attorney Reviewed Documents.
Recent Posts
Whether due to a sudden illness, an unexpected hospitalization, or other urgent situations, it's important to know what essential documents should be in place and how an attorney can help ensure a smooth transition for your loved ones.
Whether due to a sudden illness, an unexpected hospitalization, or other urgent situations, it's important to know what essential documents should be in place and how an attorney can help ensure a smooth transition for your loved ones.
Click HERE To View March Newsletter
Understanding the difference between an heir and a beneficiary can help you navigate estate planning more effectively and ensure that your wishes are carried out properly.
Estate planning is about more than just dividing assets; it’s about making sure your wishes are honored when it comes to your health, finances, and legacy.
Beyond understanding the medical aspects, there are critical legal steps you should take to safeguard your rights, clarify your wishes, and prepare for any unexpected situations.
Estate planning is a sensitive and complex process that often involves difficult decisions. One of the most challenging choices parents may face is whether to leave their children unequal inheritances.
Submit Your Confidential Request
Click the button & fill out the form so we can better understand how we can help.