Limited liability company is abbreviated by LLC. Before the process of Illinois LLC formation, you need to know what is meant by LLC. Limited liability company refers to the business structure with a flexible organization. LLC Illinois offers limited liability to its members. LLC in this State are considered as corporations, limited liability partnerships. It can also be single-member LLC.
What follows is necessary for the formation of an LLC: the full names and addresses of: the company's principal and the registered agent; the purpose of the LLC; the type of management; the full name, address and signature of the organizer; the member's liability, and the exact period the LLC is not perpetual.
At the first stage you have to give your LLC a name. What you need is a unique name that distinguishes your business from others in the industry. Run a research through the Secretary of State Business to see if your company's name shares similarities with another company's name. Your LLC's name must include L. L. C., LLC or the whole "Limited Liability Company", not corp. Or Ltd.
It is recommended that you select a registered agent for your LLC. A registered agent can be either an individual or a company that is legally permitted to conduct business in Illinois. The agent will handle legal documents on behalf of the LLC and notify its members accordingly.
Ensure you get Employer Identification Number (EIN). Most LLC have more than two members and hence are required to have the Employer Identification Number. The IRS issues the EIN. EIN is used for tax purposes. Register with the Illinois Department of Revenue and it is mandatory. It involves filling online forms or registering through mail, and then submit registration application form for your business.
Next, you should create an operating agreement. This is a document where the ownership status and the operational procedures of an LLC are stated. It is the document recognized by the State of Illinois as the one governing the LLC. It is not mandatory for an LLC to operate under one such agreement but it is nevertheless recommended, particularly if your LLC has two members or more and if you want to build a healthy relationship with co-owners. In order to create an operating agreement you need to contact a lawyer.
One other document you should focus on is the annual report. Your LLC is legally obliged to provide the State of Illinois with these reports each year before the anniversary of your LLC's founding, either online or by mail. The filling of the annual reports can be carried out either by the manager or a member of the LLC and comes at a cost of $250. Since the fees are susceptible to changes refer to the State Department of Business Services for further information. Bear in mind though that should you fill the annual reports later than expected you will be penalized with a fee of $300.
Late submission of the annual report two months after the due date incurs a penalty of $300. The State Department of Business Services can alter the amount of fees so consult its website for up-to-date information. Your Illinois LLC is subject to taxation. The amount of the tax depends on the type of taxation you will choose.
What follows is necessary for the formation of an LLC: the full names and addresses of: the company's principal and the registered agent; the purpose of the LLC; the type of management; the full name, address and signature of the organizer; the member's liability, and the exact period the LLC is not perpetual.
At the first stage you have to give your LLC a name. What you need is a unique name that distinguishes your business from others in the industry. Run a research through the Secretary of State Business to see if your company's name shares similarities with another company's name. Your LLC's name must include L. L. C., LLC or the whole "Limited Liability Company", not corp. Or Ltd.
It is recommended that you select a registered agent for your LLC. A registered agent can be either an individual or a company that is legally permitted to conduct business in Illinois. The agent will handle legal documents on behalf of the LLC and notify its members accordingly.
Ensure you get Employer Identification Number (EIN). Most LLC have more than two members and hence are required to have the Employer Identification Number. The IRS issues the EIN. EIN is used for tax purposes. Register with the Illinois Department of Revenue and it is mandatory. It involves filling online forms or registering through mail, and then submit registration application form for your business.
Next, you should create an operating agreement. This is a document where the ownership status and the operational procedures of an LLC are stated. It is the document recognized by the State of Illinois as the one governing the LLC. It is not mandatory for an LLC to operate under one such agreement but it is nevertheless recommended, particularly if your LLC has two members or more and if you want to build a healthy relationship with co-owners. In order to create an operating agreement you need to contact a lawyer.
One other document you should focus on is the annual report. Your LLC is legally obliged to provide the State of Illinois with these reports each year before the anniversary of your LLC's founding, either online or by mail. The filling of the annual reports can be carried out either by the manager or a member of the LLC and comes at a cost of $250. Since the fees are susceptible to changes refer to the State Department of Business Services for further information. Bear in mind though that should you fill the annual reports later than expected you will be penalized with a fee of $300.
Late submission of the annual report two months after the due date incurs a penalty of $300. The State Department of Business Services can alter the amount of fees so consult its website for up-to-date information. Your Illinois LLC is subject to taxation. The amount of the tax depends on the type of taxation you will choose.
