File an LLC in Illinois Stress-Free

Quick facts about forming an Illinois LLC

Filing Fee	$150 (+$3.38 online processing fee)
Processing Time	5–10 business days, expedited available
Annual Report Fee	$75
Registered Agent Required	Yes, must have a physical address in Illinois
State Franchise Tax	None for LLCs
Business License	Not required statewide, but local permits may apply
Managing Authority	Illinois Secretary of State

How to start an LLC in Illinois in 5 steps

Creating an LLC can feel daunting, but it is much easier when you have all the details you need from the start. That includes knowledge, support, and help, too, so you can get things moving in the right direction. Fortunately, Illinois can be a good place to start an LLC, so if you’re in that state or thinking about relocating there, you may be in luck. Illinois is a business-friendly state, with reasonable requirements and regulations for starting an LLC.

The Illinois Secretary of State website can help you get organized and file so you know which forms to use and feel confident that you’re following the right legal pathways. You’ll be able to look through the checklist and download the required form right from the site. You can also browse the guide for starting LLCs in the state to ensure you’re not overlooking something specific. That’s a great way to reduce your stress and make it easier for you to get your company up and running quickly.

The cost of filing your Articles of Organization in Illinois is $153.38, which includes the state filing fee and a processing fee. While that’s more expensive than some states, it’s also considerably less than what several other states charge. You’ll likely find most of the business fees in the state pretty reasonable, and the regulations aren’t overly restrictive or complex, either. It’s pretty straightforward to get started, and you can have your company created and operating in no time. Here’s what you need to know form an LLC in Illinois.

There are main five steps you need to take:

1. Name your Illinois LLC
2. Choose your registered agent
3. File articles of organization
4. Create an operating agreement 
5. Apply for an EIN

Each step is discussed in more detail below.

Step 1: Name your Illinois LLC

What do you plan to call your company? Choosing a name for your Illinois LLC is the first step toward making it a reality. Keep in mind that you need to choose something that works for you and your customers, and something that hasn’t already been used (this requires you to do an Illinois business entity search). Take the time to consider the name as a URL, since running words together without spaces sometimes creates the suggestion of a word or name that won’t work for you.

Step 2: Choose a registered agent

A registered agent is a requirement of LLC creation in all 50 US states. Sometimes this entity is also called a resident agent or something similar; in Illinois there’s a registered agent and registered office. There are three specific features of a resident agent. These are:

• They must be a legal Illinois resident because people or entities that aren’t located in Illinois cannot serve in that capacity.
• They must be 18 years of age or older and can be someone who’s already a part of the LLC, which can include you.
• They must be able and willing to act as the point of contact between your LLC and the state of Illinois for anything that’s legal-based, such as government correspondence, tax forms, legal documents, and lawsuit notices.

If you choose, you can designate anyone who fits the above criteria to be your Illinois registered agent. What if that person is sick or on vacation when something important comes in? If you use our registered agent services, you don’t have any of those worries.

Depending on your role with the company and other factors, you may find it much easier to choose a registered agent service. That’s one thing off the list that you don’t need to worry about. You’ll still be kept in the loop if there are issues with your LLC, but you won’t have to be the initial point of contact for paperwork and legal forms.

Step 3: File articles of organization

After you’ve secured the name of your LLC, you’ll want to file your Illinois articles of organization. These are the formal documents required to legally establish your LLC with the state. They detail the rights and responsibilities held by each member of the LLC and explain the duties, powers, and liabilities those members have to each other and the LLC’s customers. You can use templates to create the articles, and then you’ll pay your filing fee and submit the paperwork.

State fees

The Illinois LLC cost is $153.38, which includes $150 state filing fee for the Articles of Organization and a $3.38 processing fee. If you need a business license, that will cost extra, but not all business entities need them. Illinois’ fees are higher than some states but lower than others, making them pretty standard for creating an LLC. The cost of the state business license can vary depending on what industry you’re in. If you’re located in the city limits of Chicago, you may also have licensing requirements to comply with there.

Requirements

There is specific information that has to be included in your Articles of Organization. These include the LLC’s name and physical address in Illinois, along with the effective date of the LLC. This date has to be within 60 days of filing. You’ll also need the name and address of the registered agent, and the LLC’s purpose. If the operating agreement has a dissolution date, you’ll want to include that, as well. If you’re filling out the form, you need to include your name and address. Here is a list of the required information:

• LLC 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;
• LLC term of existence; and
• Names and business addresses of the initial managers or any member having the authority of manager.

Think of your Articles of Organization as a charter. They act as the overall agreement for your company, and they explain the purpose and the way the company plans to operate. The state also wants information on the people operating your LLC, so they can reach the right people if there are problems or concerns. You want to make sure everything in your Articles of Organization is filled out correctly so you have peace of mind and keep your LLC up and running efficiently.

How to file

It’s easy to file your Illinois LLC documents online, but you can also mail the forms in if that works better for you. You have two different options, so you can choose the one that meets your needs. While some states also accept your Articles of Organization by fax, email, or in person, Illinois requires either online or mail-in delivery. If you want to get started on opening up your business faster, you may want to choose the online option for filing with the state.

Filing address if done by mail:

Secretary of State
Department of Business Services
Limited Liability Division
501 S. Second St., Rm 351
Springfield, IL 62756
217-524-8008

Payment must be made by certified check, cashierʼs check, Illinois attorneyʼs check, C.P.A.ʼs check or money order that is made payable to Secretary of State.

Note that for expedited service, the request must be made in person, not by mail in the Department’s Springfield office (above) or Chicago office (below).

Illinois Secretary of State
Department of Business Services
69 W. Washington St., Ste. 1240
Chicago, IL 60602
312-793-3380

Step 4: Create an operating agreement

Step four in creating an Illinois LLC is the development of your operating agreement. This is the agreement that provides an outline of the ownership of your LLC, along with the operating procedures. It’s a legal document, and it’s binding on the business and the people it relates to. In essence, it ensures that every one of the owners of the business is on the same page when it comes to the purpose and direction of the LLC.

While the operating agreement doesn’t guarantee that everything will always be harmonious, it can help to reduce disputes and limit future conflicts. Decreased risk of conflict and other potential issues means a stronger and healthier company for the long term, which is a big benefit for any business trying to get started and develop success.

If you’re trying to create a multi-member LLC or a series LLC (where different company divisions operate like separate entities), it’s extremely important to create a strong operating agreement where everything is thoroughly covered. That gives you and any business partners a lot more peace of mind, and it also helps you legally work through any concerns or discrepancies you might have in the future. It’s a way to protect your company, your business partners, and yourself from misunderstandings.

An Illinois LLC operating agreement is not required by the state, so there aren’t any specific requirements about what should be included in one. But there are some general areas of information you can consider that make logical sense in this type of agreement. For example, consider including basic information on the overall organization. Who owns it, when it was created, and the names of all the members are important information. So is the ownership structure since it may be unequal by design.

You can also address management issues, any capital contributions, and the voting rights and responsibilities of the members in your operating agreement. If there are multiple owners, they generally all have a vote if there will be changes made to a business. Being clear on who’s managing the LLC and how everyone’s votes are handled makes it easier for you and other members of your company to avoid frustration and confusion, as well as conflict. Not all voting powers may be equal.

Another area you want to add to your operating agreement is what will happen if you want to make changes to the membership structure in the future, as well as how the company would or could be dissolved. Distributions are important, too. When distributions are given out, who receives them, and how they are given all matter. Are there any specific factors that could affect distributions? Put those into the operating agreement, as well.

Step 5: Apply for an EIN

Using an EIN (employer identification number) is a requirement from the IRS, so it’s not something you want to ignore. When you develop an LLC, that entity must have an EIN to pay its employees properly. The IRS will assign your LLC this 9-digit number when you file for it, and it doesn’t cost you anything to request one. It’s very much like a Social Security number for a business—and it’s not just for paying employees.

There are other reasons you’ll need an EIN, such as when you open a bank account for your LLC or file your state or federal taxes. Unless they want to hire employees, individuals generally don’t need EINs, even if they’re in business. You’ll likely find that you can’t open a bank account or a line of credit for your LLC without this important number. It’s quick and easy to get one from the IRS, so it’s vital to take the few required minutes to make sure you get one.

Applying for an EIN is one of the services we provide, so you don’t have to handle it yourself if you don’t want to. It’s also something that you can file for on your own, if that’s how you’d prefer to get the number. Since it’s free and easy to get, some people who create an Illinois LLC file for it themselves in the course of doing other things to get their business off the ground.

The EIN doesn’t take long to get if you fill out the correct form with your company’s information. You can choose to get your EIN online or through the mail, whichever is most convenient for you and your company.

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