How to Start an LLC in Illinois

STEP 1: Complete a Illinois LLC Search and Choose a Unique Business Name

You will need a distinctive and original name for your LLC that’s not used by any other business in IL. If you’re having trouble coming up with a name, try out Incfile’s Business Name Generator to brainstorm ideas. There are also a few naming rules you’ll need to follow, which you can read about in detail on our section on Illinois LLC Business Names. One Illinois rule, for example, is that certain restricted words need additional paperwork if you want to use them in your business name. This includes both names associated with institutions and words associated with certain qualified professions, such as insurance, surety, underwriters, bank, bankers, banking or any licensed professional services.

Once you’ve chosen a name, you’ll need to make sure it’s available in Illinois. To find out if another company is using your chosen business name, use Incfile’s fast and easy Business Name Search tool below. Alternatively, you can carry out an Illinois business entity name search on the IL Secretary of State website.

STEP 2: Provide an Official Business 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. Box.

STEP 3: Assign a Registered Agent for Your Illinois LLC

Every Illinois LLC is required to have a Registered Agent. 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. If your Registered Agent is a person, they must reside in and have a physical street address in Illinois and must be present to receive important documents for your company during business hours. In Illinois, you designate your Registered Agent when you file your Articles of Organization and formally create your business.

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 4: File Your Articles of Organization (Form LLC-5.5) with the Illinois Secretary of State

Once you've gathered all the information for your Illinois LLC, you’ll need to file a formal document with the Illinois Secretary of State. This document is known as your “Articles of Organization,” and filing two copies (one original, signed document and a second copy) of this document officially 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

Download Form LLC-5.5 Here

You can file your Illinois LLC Articles of Organization online with the Illinois Secretary of State (SOS) filing system, mail in a form to the Office of the Secretary of State or have Incfile do it on your behalf. The State of Illinois charges a $150 fee to file and start an LLC.

You only need to file your Articles of Organization once, but every year after you need to file an annual report for your LLC. This is also something Incfile can remind you to do or do for you if you choose to have us handle the paperwork.

* includes state online processing fees

STEP 5: Get an Employer 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 process.

STEP 6: Create a Illinois LLC Operating Agreement

An Operating Agreement is a kind of “instruction manual” that outlines how you will run your business. It includes how decisions are made, how the business is divided amongst members and what happens if a member leaves the company.

Many states require that a company have an Operating Agreement in place — it isn’t legally required in Illinois, but it’s a good idea to have one nonetheless.

Learn more about operating agreements here