As the sixth most populous state in the U.S., Illinois is home to the magnificent city of Chicago and the natural wonders of the Great Lakes — and it’s also a great place
to live and to start a business. The Port of Chicago connects to the Atlantic through the network of lakes, and the state is a central hub for domestic and international
travel. Known as a bellwether of culture and politics, Illinois is a place where great movements and businesses are born. The industries that dominate in Illinois include
agriculture, manufacturing, services and energy.
If you want to start your own business in Illinois, one of the best ways to do so is by forming an Illinois LLC. Limited Liability Companies (LLCs) are a business entity
designed for startups and small- and medium-sized businesses. Illinois LLCs give you many of the protections and advantages of larger corporations without all the rules,
regulations and compliance issues common to larger business entities.
We’ll cover searching for and creating the perfect name for your Illinois LLC, registered agents, fees, filing requirements, taxes and more.
Briefly, the benefits of starting an Illinois LLC include:
Separating and limiting your personal liability from your business liability and debts
Quick and simple filing, management, compliance, regulations and administration of your Illinois LLC
Easy tax filing and potential advantages for tax treatment
This guide has plenty of information on how to form your Illinois LLC, but you can break down the basics of forming a business in IL into just a few simple
STEP 1: Gather Information for Your Members
First, you’ll need to gather basic information about your LLC, including the names and addresses of the managers or members. The LLC members are
typically the people who own and run the business. They are also the ones who can take profits out of the business to pay themselves.
STEP 2: Search for and Choose a Unique Business Name for Your Illinois LLC
You’ll need a distinctive and original name for your Illinois LLC that’s not used by any other business in IL. We provide a simple, easy-to-use business name search tool that tells you if another LLC or corporation in Illinois is using your proposed name. Just enter a few details and we’ll search the business registry of the IL Secretary of State.
There are a few rules you’ll need to follow when choosing an LLC name. You can find out more in our guide to searching for and naming your Illinois LLC.
STEP 3: Provide an Official Address for Your IL LLC
Every Illinois LLC must have a designated street address. That could be your home address (if you’re running the company from your residence), your
company’s office building or any physical address of your preference. The address can be outside the state of Illinois, but it cannot be a P.O.
STEP 4: Assign a Registered Agent for Your Illinois LLC
Every IL LLC must have a “Registered Agent” when it is formed. This is an official position; the Registered Agent is someone who receives official
legal and tax correspondence and has responsibility for filing reports with the Illinois Secretary of State.
This position can be filled by you, another manager in the business or a dedicated Registered Agent service. Your IL Registered Agent must have a
physical street address in Illinois and must be present to receive important documents for your company during business hours.
At Incfile, all of our packages include an Illinois Registered Agent service that is free for the first year and just $119 per year afterward. We
also have a dashboard where you can log in and easily view any document your Registered Agent has received on your behalf.
STEP 5: Get an Employee Identification Number (EIN) From the Internal Revenue Service
You will need an EIN to identify your business to the IRS. You use this number when filing and paying taxes or when submitting payroll information
and payments for your employees. You can obtain one directly from the IRS, or we can get one for you as part of the Illinois LLC business formation
STEP 6: File Articles of Organization With the Illinois Secretary of State
Once you've gathered all the information together for your Illinois LLC, you’ll need to file a formal document with the IL Secretary of State. This
document is known as your “Articles of Organization,” and filing the document creates your Illinois LLC. Here’s what is typically included:
Your business name and address
Details of your Registered Agent
Purpose of your business
Duration (can be permanent)
Provisions for the regulation of the internal affairs of the company
Names of managers or members of the LLC at the time of filing
Addresses of managers or members of the LLC at the time of filing
Name of the incorporator
You can file your Illinois LLC Articles of Organization online, mail in a form or have Incfile do it on your behalf. There is a fee to file and start
an LLC in Illinois. You only need to file your Articles of Organization once.
A regular Illinois LLC is suitable for most business needs, but you also have a few other options to incorporate a special type of LLC.
Form a Series LLC
In Illinois, you also have the option to set up a “Series LLC” — these are specialized LLCs designed to allow you to manage multiple separate LLCs
under one master, umbrella LLC. These can be very useful if you don’t want to set up a separate Illinois LLC for every individual business you
Some states, including Illinois, allow certain occupations to form “Professional LLCs.” These types of businesses typically have specialized
requirements and licensing. A standard LLC may be formed to provide professional services, such as the practice of medicine or dentistry, if all the
members are licensed.
A limited liability company engaged in rendering a professional service regulated by the Illinois Department of Financial and Professional Regulation
must register with that agency.
Form a Foreign LLC in Illinois
If your business is already operating in another state and expanding to Illinois, you’ll need to form a foreign LLC.
How to search the Illinois business registry of the IL Secretary of State and find the right name. We provide a
complete business name search tool that lets you know if another corporation or LLC already has the name you want.
This section also includes information on naming rules, fictitious names, reserving an Illinois LLC name and more.
How to understand the various fees you’ll need to pay and the requirements you’ll need to meet for both federal and Illinois rules. Includes details of Employee Identification
Numbers (EINs), Illinois and federal business licenses, Illinois annual reports and more.
How to understand the various taxes you will need to pay to the federal and Illinois government. Includes details of federal taxes like income and self-employment and Illinois
taxes like sales tax and income tax.
This report is mandatory and must be filed within the specified time frame in order for the entity to remain in good standing with the state. Failure to file
this report can lead to the company being revoked or administratively dissolved.