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.
The first essential steps in order to set up an LLC in this State are the following: full name and address of the LLC's principal; full name and address of the registered agent; full name and address of the organizer (plus his original signature; a statement of the LLC's purpose and its type of management; the definition of its member's liability, and the period that the LLC is not perpetual.
During LLC formation, you first have to name your LLC. Give your LLC a unique name that will enable your business distinguishable from other businesses. You can research on your LLC's name through the Secretary of state Business to see if it is similar to another LLC's name. It is advisable to change it when the name of your LLC matches another LLC. Your name must have Limited Liability Company, L. L. C. Or LLC. Words such as corp., corporation, Ltd etc. Are prohibited.
You are recommended to choose a registered agent for your LLC. Agents can be individuals or company and they have the authority to carry out businesses with permanent address to this State. The agent will accept legal documents for the LLC and notify all its members. File the Articles of the organization by the secretary of State Department of Business Services. The articles must contain all the requirements required for forming an Illinois LLC, mentioned initially.
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.
Then you have to generate an operating agreement, which states who the owner of the LLC is and what operating procedures are followed. It is a very important document since the State of Illinois recognizes it as the one governing the LLC. Though not mandatory, you are advised to create an operating agreement especially if your LLC has more than a single member. Get in touch with a lawyer to create your LLC's operating agreement.
Familiarizing with legal obligations of LLC is needed. The continuing legal obligations are specifically the annual reports. These annual reports are submitted to the State annually prior the anniversary of your LLC by mail or online. The annual reports can be filled either a manager or member. The filling is done at fee of $250 annually. You are penalized for late filling, two months after the due date, with a fee of $300. The fees may change hence you need to check with the State Department of Business Services after some period.
Illinois LLCs are subject to taxation, federal income tax. The tax will depend on the type of taxation you will prefer. You can learn the types of taxation on the State's website.
The first essential steps in order to set up an LLC in this State are the following: full name and address of the LLC's principal; full name and address of the registered agent; full name and address of the organizer (plus his original signature; a statement of the LLC's purpose and its type of management; the definition of its member's liability, and the period that the LLC is not perpetual.
During LLC formation, you first have to name your LLC. Give your LLC a unique name that will enable your business distinguishable from other businesses. You can research on your LLC's name through the Secretary of state Business to see if it is similar to another LLC's name. It is advisable to change it when the name of your LLC matches another LLC. Your name must have Limited Liability Company, L. L. C. Or LLC. Words such as corp., corporation, Ltd etc. Are prohibited.
You are recommended to choose a registered agent for your LLC. Agents can be individuals or company and they have the authority to carry out businesses with permanent address to this State. The agent will accept legal documents for the LLC and notify all its members. File the Articles of the organization by the secretary of State Department of Business Services. The articles must contain all the requirements required for forming an Illinois LLC, mentioned initially.
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.
Then you have to generate an operating agreement, which states who the owner of the LLC is and what operating procedures are followed. It is a very important document since the State of Illinois recognizes it as the one governing the LLC. Though not mandatory, you are advised to create an operating agreement especially if your LLC has more than a single member. Get in touch with a lawyer to create your LLC's operating agreement.
Familiarizing with legal obligations of LLC is needed. The continuing legal obligations are specifically the annual reports. These annual reports are submitted to the State annually prior the anniversary of your LLC by mail or online. The annual reports can be filled either a manager or member. The filling is done at fee of $250 annually. You are penalized for late filling, two months after the due date, with a fee of $300. The fees may change hence you need to check with the State Department of Business Services after some period.
Illinois LLCs are subject to taxation, federal income tax. The tax will depend on the type of taxation you will prefer. You can learn the types of taxation on the State's website.
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