Start an LLC in Illinois

You can’t start an LLC without a name. So the first step in getting your Illinois business off the ground is choosing a name to represent your company.

Naming requirements for LLCs in Illinois

When choosing a name for your LLC in Illinois, you’ll need to follow the guidelines in §805 ILCS 180/1-10:

• Include the words limited liability company or an abbreviation, such as LLC.
• Not include words or abbreviations that are reserved for other entity types, such as corporation, limited partnership, or Inc.
• Not include the words trust, trustee, or fiduciary, unless the business is an authorized corporate fiduciary.

Your business name also needs to be different from any other active business name in Illinois. You can do a quick search to see if your proposed business name is available by using the Illinois Business Entity Search.

After choosing your LLC’s name, a good next step is locking down a domain name for your business website. Your domain name (URL) is the web address to your site.

A professional domain name should be easy to remember—and ideally, match or complement your business name. When you register your domain name early, you’re more likely to get a name that meets those standards.

You’ll need to claim a business domain name through a registrar. When you hire Northwest to form your LLC, domain registry is one of many in-house services we provide, so you also get a domain name free for a year, plus your own customizable business website secured with SSL protection, and up to ten email business addresses connected to that domain.

A registered agent is a person or business who accepts legal mail (called service of process) on behalf of your business. All LLCs in Illinois are required to have a designated registered agent based in the state. You’ll have to include your registered agent’s name and address on your Articles of Organization.

Your Illinois registered agent is required to:

• Have an Illinois physical address (not a P.O. Box).
• Hold regular business hours.
• Accept legal mail on your business’s behalf and deliver it to you promptly.

For more details, rules for registered agents in Illinois are outlined in §805 ILCS 180/1-35.

Using a registered agent service in Illinois

You can, of course, serve as your own LLC’s registered agent in Illinois. In fact, any organizer, manager, member, or employee of your company can be its registered agent. But here are some things to keep in mind:

• Privacy. Your registered agent’s address will be listed on the public record and easy for anyone to access online.
• Availability. Service of process mailings are no joke. They require proper handling by someone available during regular business hours to accept and notify you of important documents.
• Appearance. It’s never fun being served a lawsuit. It’s even worse (and more damaging to your business reputation) to be served in front of customers and business associates.

When you hire a service like Northwest Registered Agent to handle service of process mailings, you’ll be notified quickly and discreetly when we receive time-sensitive documents for your LLC.

To officially form your LLC, you’ll need to submit two identical Articles of Organization forms to the Illinois Secretary of State. Illinois allows you to file your Articles online through the Illinois Secretary of State website or by submitting paper form LLC-5.5 by mail or in person. You’ll need to pay a $150 filing fee. Standard processing time is around 10 business days. Once your Articles of Organization have been processed, your LLC is officially in business!

You’ll need this information to file your Articles:

Note: All information on this form will go on the public record.

You can submit your Articles of Organization online, by mail, or in person.

By mail or in person:

Department of Business Services
Limited Liability Division
501 S. Second St., Rm. 351
Springfield, IL 62756

Online:

Illinois Secretary of State website

Now that your LLC has been formed, it should have an operating agreement. Per §805 ILCS 180/1-30, an LLC is not required to write an Illinois operating agreement, but you should still have one for your LLC. If you don’t have an operating agreement, your business will be governed by Illinois’s default LLC statutes. Your operating agreement should plan for every major situation that your LLC is likely to deal with.

Here are some common topics operating agreements cover:

• initial investments
• profits, losses, and distributions
• voting rights, decision-making powers, and management
• transfer of membership interest
• dissolution

You’re free to include almost any rule in your operating agreement as long as it doesn’t contradict the Articles of Organization or Illinois law. Operating agreements are internal documents, so you don’t need to file yours with the Secretary of State.

It can be challenging to find a physical office space for your Illinois business, especially if you’re based in another state. If you’ve yet to secure a real office location, you’ll need an Illinois address where your business communication can go. A virtual office lets you keep your business accessible without sacrificing the privacy of your home address.

For just $29 per month, we offer Illinois Virtual Office service for your LLC. You receive a new phone line with an Illinois area code, a unique address at our Springfield location, mail forwarding, and access to our expert Corporate Guides®.

No need for a phone number or unique address? Try our secure Illinois Mail Forwarding service for your choice of same-day mail scans delivered online or weekly bundles of physical mail delivered to your preferred address.

An LLC operating in Illinois—or anywhere else in the USA—will probably need an EIN (Employer Identification Number) to do business as well. An EIN is the number the IRS uses to identify your business on tax forms. It works more or less like a social security number, but specifically for your business.

The IRS lets you apply for an EIN for free online and by mail. Or you can skip the paperwork and hire Northwest to file for you.

Learn How to get an EIN for your LLC.

To continue conducting business, you need to maintain compliance by keeping up with permits, licenses, and more. Here’s what you’ll need to do.

Opening a bank account for your LLC

The next step is to open a business bank account. This is essential for LLCs because your limited liability depends on keeping business and personal finances separate.

When you open an account at a bank for your LLC registered in Illinois, be sure to bring the following things:

• A copy of your LLC Articles of Organization
• the LLC’s operating agreement
• the LLC’s EIN
• an LLC Resolution to Open a Bank Account (if your LLC has more than one member)

Use our free LLC Resolution to Open a Bank Account.

Illinois Licenses and Permits

In Illinois, all businesses need to get a Certificate of Registration or License, which acts as a tax permit, allowing the business to collect sales tax. To get your Illinois tax permit, you’ll need to file form Reg-1 with the Central Registration Division Illinois Department of Revenue, which can be done online through the MyTaxIllinois web portal or by mail. There is no filing fee. You may also need to get a professional license, zoning permit or other types of state or local permits based on your industry and location.

Illinois Annual Reports

Your Illinois Annual Report is due before the first day of your business’s anniversary month. So if your LLC was formed on April 7th, your annual report is due by March 31st the following year. The fee to file the report is $75. If your report is more than 60 days late, you will have to pay a $100 late fee.

Illinois tax requirements

On top of getting a Certificate of Registration or License to collect the 6.25% Illinois sales tax, your LLC will also need to pay the individual income tax rate of 4.95%. Because all LLCs are taxed as pass-through entities, the business’s profits and losses pass through to the members for them to pay on their own tax returns. You should also check if your municipality has a local sales tax rate. Finally, LLCs with employees will also need to pay workers’ compensation and unemployment insurance taxes.

Check out our guide to LLC taxes in Illinois to learn more.

*This is informational commentary, not advice. This information is intended strictly for informational purposes and does not constitute legal advice or a substitute for legal counsel. This information is not intended to create, nor does your receipt, viewing, or use of it constitute, an attorney-client relationship. More information is available in our Terms of Service.