How to Form a Limited Liability Company in Illinois
- Choose a name for your Illinois limited liability company. Your LLC’s name must be distinct from the names of existing business organizations on file with the Illinois Secretary of State
- Otherwise, your LLC will be disqualified.
- Select a registered agent to represent you. In Illinois, like in every other state in the United States, incorporating an LLC necessitates the appointment of a registered agent service to handle state and federal legal paperwork.
- Keep the Articles of Organization in a safe place. It is necessary to file Articles of Organization with the Illinois Secretary of State, Department of Business Services, in order for an Illinois limited liability company to be formally constituted.
- Create a draft of the operating agreement. Although it is not a legally required stage in the formation of an LLC in Illinois, the creation of a complete LLC operating agreement is strongly advised for all newly formed limited liability companies.
- Obtain an Employer Identification Number from the Internal Revenue Service (EIN) All newly created limited liability companies (LLCs) in the United States must get an Employer Identification Number (EIN) from the Internal Revenue Service (with the exception of partnerships).
Creating a Limited Liability Company in Illinois
- Step 1: Decide on a name for your Illinois limited liability company.
- Appoint a registered agent in the state of Illinois in Step 2.
- Step 3: Determine whether or not you require an Illinois business license.
- 4. Place the articles of incorporation in a file.
- Step 5: Create an operating agreement for a limited liability company.
- Step 6: Comply with Your Employer’s Requirements
How much does it cost to dissolve an LLC in Illinois?
Late Filings: Illinois levies a late fee of $75 if the filing is done by mail and $125 if it is done online. Aside from that, LLCs who fail to file an annual report will be dissolved 180 days after the due date. When Illinois limited liability companies (LLCs) fail to file one or more state filings, they may be subject to penalties and possibly immediate dissolution.
How much does it cost to set up an LLC?
Documentation Fees: $400 for articles of organization for a limited liability company with the possibility to form a series; $100 for expedited service (optional). This fee is due when you submit your proposed Articles of Organization to the Secretary of State’s office. Your credit card account will be charged at that time.
How do I Register my LLC in Illinois?
State law mandates that your LLC register with this agency upon establishment in order to be eligible for state tax benefits. This may be done online or over the mail using Form REG-1, which is the Illinois Business Registration Application, which is available for download here. Include your email address so that you may be notified when this question has been resolved.
How much does it cost to set up an LLC in Illinois?
What is the cost of forming a limited liability company in Illinois? File the Articles of Organization with the Secretary of State’s office in Illinois for a fee of $150. For $25, you may reserve the name of your limited liability company with the Illinois Secretary of State.
Is an LLC free in Illinois?
For the state of Illinois, the filing fee for forming a domestic LLC is $150. Foreign limited liability companies in Illinois are subject to the same filing fees as domestic limited liability companies, which is $150. Following the formation of your LLC, you will be required to pay a $75 yearly filing fee to the state.
Is there a yearly fee for an LLC in Illinois?
LLCs in Illinois are required to file an annual report within the 60-day period before the first day of the month in which their incorporation day is commemorated. The charge for submitting an annual report is $250.
Do LLCs pay taxes in Illinois?
The tax rate for normal LLCs (i.e., those that do not opt to be taxed as corporations) is 1.5 percent of their net income. The Illinois Department of Revenue is responsible for collecting the tax (IDOR). To pay the tax, fill out Form IL-1065. Occasionally, the owners of a limited liability company (LLC) elect to have their firm handled as if it were a corporation for tax purposes.
Do I need an EIN for my LLC?
- If an LLC has any workers or if it is needed to submit any of the excise tax forms specified below, it will be required to get an Employer Identification Number (EIN).
- The majority of new single-member limited liability companies (LLCs) that are classed as disregarded businesses will be required to get an EIN.
- An LLC can apply for an EIN by submitting Form SS-4, Application for Employer Identification Number, which is available online.
Do I need a lawyer to start an LLC?
When forming an LLC, there is no legal necessity to retain the services of an attorney. Most states permit the establishment of a limited liability company (LLC) by registering the business entity on the website of your secretary of state as well as with the Internal Revenue Service (IRS).
How much is an EIN number in Illinois?
The application for an EIN for your LLC is completely free ($0). The application for an EIN for your Illinois limited liability company is absolutely free. When you apply for an EIN, there are no fees or charges assessed by the IRS.
How do I start my own business in Illinois?
How to Begin a Business in the State of Illinois
- Decide on a business concept.
- Make a decision on the legal structure.
- Make a decision on a name.
- Create a legal entity for your business.
- Licenses and permits must be obtained.
- Choose a location for your business and research zoning regulations.
- Examine your tax reporting and registration requirements.
- Obtain insurance coverage
How do I create an LLC?
How to Set Up an LLC
- Make a decision on a company name.
- Make arrangements for a Registered Agent.
- Acquire a copy of the LLC Articles of Organization Form for your state.
- Prepare the Articles of Organization for a Limited Liability Company.
- Place the Articles of Organization in the appropriate folder.
- Make a copy of the Operating Agreement.
- Maintain the existence of your LLC.
What is better for a small business LLC or S corporation?
If there would be a large number of persons participating in the operation of the firm, a S Corp would be preferable than an LLC since there would be more monitoring through the board of directors. In addition, members can be workers, and a S corp permits the members to earn cash dividends from the company’s revenues, which can be a valuable employee benefit in some cases.
What is better LLC or sole proprietorship?
A sole proprietorship is advantageous for enterprises that operate on a small scale, generate little profit, and pose little risk. A sole proprietorship does not provide you with any protection for your personal assets. A limited liability company (LLC) is the ideal option for the majority of small business owners since LLCs can safeguard your personal assets.
What is small business tax rate in Illinois?
In addition, Illinois has a corporate income tax rate of 9.50 percent. Illinois has a state sales tax rate of 6.25 percent, a maximum municipal sales tax rate of 4.75 percent, and an average combined state and local sales tax rate of 8.81 percent, according to the state. The state of Illinois’ tax structure is ranked 36th overall on our State Business Tax Climate Index for 2022.
How do I get an EIN number in Illinois?
If your major place of business is in the United States or one of the United States territories, you may register for an EIN online. A valid Taxpayer Identification Number must be provided by the applicant while applying online (SSN, ITIN, EIN). On any given day, you are only allowed to use one EIN per legally responsible party.
How do I set up an LLC online?
- Step 1: Choose your state of residence. All states, with the exception of Maine, allow for online filing.
- Step 2: Create a name for your LLC.
- Step 3: Select an authorized representative.
- Step 4: File your Articles of Organization with the appropriate authorities.
- Step 5: Draft a Limited Liability Company Operating Agreement.
- Step 6: Obtain an Employer Identification Number (EIN).
- Make an account with a business bank.
- Obtain Insurance Coverage