How to Form an LLC in Illinois (IL LLC 2023)

Forming a Limited Liability Company (LLC) in Illinois is an easy process, but it involves a few steps.
Start an Illinois LLC for $0 + state fee
To form an LLC in Illinois for free + state fee, we have listed 3 options to consider:
You can go online and visit the Illinois Secretary of State’s website and do it yourself or you can use the ‘free’ service from Incfile or ZenBusiness.
- DIY $0 + state fee
- Incfile $0 + state fee
- ZenBusiness $0 + state fee
Want to Keep Things More Private?
- Northwest $39 + state fee ‘Privacy by Default’
Our Top 3 Recommended Services



Forming an LLC in Illinois for $0 (DIY Summary)
Here’s a brief step-by-step guide to help you through the DIY process, along with relevant links to official resources:
Step 1: Choose a Name for Your LLC
The first step is to select a unique name for your LLC. Make sure the name complies with Illinois naming requirements and is not already in use by another business entity.
You can check the availability of your desired name through the Illinois Secretary of State’s Business Services website.
Step 2: Appoint a Registered Agent
Every LLC in Illinois must have a registered agent who will receive legal and official documents on behalf of the company.
The registered agent can be an individual resident of Illinois or a business entity authorized to conduct business in the state.
Step 3: File Articles of Organization
The next step is to file the Articles of Organization with the Illinois Secretary of State.
This document officially establishes your LLC and includes essential information such as the LLC’s name, address, registered agent, and purpose of the company.
You can file the Articles of Organization online through the Illinois Secretary of State’s Business Services website or by mail.
Step 4: Create an Operating Agreement
Although not required by the state of Illinois, it is highly recommended to create an Operating Agreement for your LLC.
This legal document outlines the ownership structure, management responsibilities, and operational guidelines of your company.
It helps establish clear rules and procedures for your LLC’s day-to-day operations.
Step 5: Obtain Necessary Permits and Licenses
Depending on the nature of your business, you may need to obtain specific permits and licenses to operate legally in Illinois.
The Illinois government website provides comprehensive information on the licenses and permits required for different types of businesses.
Step 6: File Annual Reports
Once your LLC is formed, you are required to file an Annual Report with the Illinois Secretary of State.
The Annual Report confirms and updates the information regarding your LLC, such as the address, members, and registered agent.
It is important to file the Annual Report on time to maintain your LLC’s active status.
Step 7: Comply with Tax and Regulatory Requirements
Your LLC will be subject to various tax and regulatory obligations. You need to obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS) if you have employees or if your LLC is taxed as a corporation.
Additionally, make sure to comply with state and local tax requirements and any industry-specific regulations.
Illinois LLC: Definitions
Limited Liability Company (LLC): A business structure that combines the limited liability protection of a corporation with the flexibility and tax benefits of a partnership. It offers personal asset protection for its owners while allowing them to pass profits and losses through their individual tax returns.
Secretary of State: The government agency responsible for overseeing business entity formations and registrations in Illinois. The Illinois Secretary of State’s office maintains the state’s business entity database and handles the filing of LLC formation documents.
Articles of Organization: The legal document required to formally create an LLC in Illinois. It includes essential information about the LLC, such as its name, registered agent, purpose, and the names of its members or managers.
Registered Agent: An individual or business entity designated to receive legal documents, such as lawsuits and official correspondence, on behalf of the LLC. The registered agent must have a physical address in Illinois and be available during regular business hours.
Operating Agreement: A written agreement that outlines the internal operations, ownership structure, management responsibilities, and decision-making processes of the LLC. Although not required by Illinois law, having an operating agreement is highly recommended for LLCs.
Employer Identification Number (EIN): Also known as a Federal Tax Identification Number, an EIN is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to identify a business entity for tax purposes. LLCs often need an EIN to hire employees, open bank accounts, and file federal taxes.
Annual Report: A yearly filing required by the Illinois Secretary of State to maintain an active status for the LLC. It includes updated information about the LLC’s members, managers, and registered agent. Failure to file the annual report can result in penalties and potential dissolution of the LLC.
Operating Agreement: A written agreement that outlines the internal operations, ownership structure, management responsibilities, and decision-making processes of the LLC. Although not required by Illinois law, having an operating agreement is highly recommended for LLCs.
Professional Limited Liability Company (PLLC): A specialized type of LLC that is formed by licensed professionals such as doctors, lawyers, accountants, or architects. PLLCs must comply with additional regulations and restrictions imposed by their respective professional licensing boards.
Series LLC: A unique type of LLC allowed in Illinois that enables a single LLC to establish separate series or divisions with separate assets, liabilities, and members. Each series operates independently, providing liability protection between the series within the LLC structure.
Forming a Limited Liability Company (LLC) in Ohio is an easy process, but it involves a few steps.
Start an Ohio LLC for $0 + state fee
To form an LLC in Ohio for free + state fee, we have listed 3 options to consider:
You can go online and visit the Ohio Secretary of State’s website and do it yourself or you can use the ‘free’ service from Incfile or ZenBusiness.
- DIY $0 + state fee
- Incfile $0 + state fee
- ZenBusiness $0 + state fee
Want to Keep Things More Private?
- Northwest $39 + state fee ‘Privacy by Default’
Our Top 3 Recommended Services



Forming an LLC in Ohio for $0 (Summary)
Here’s a brief step-by-step guide to help you through the DIY process, along with relevant links to official resources:
- Choose a Name for Your LLC:
- Select a unique and distinguishable name that complies with Ohio’s naming requirements.
- Check the availability of your chosen name using the Ohio Secretary of State’s business search tool: Ohio Secretary of State Business Search.
- Appoint an Ohio Registered Agent:
- An LLC in Ohio must have a registered agent who can accept legal documents on behalf of the company.
- The registered agent can be an individual resident of Ohio or a business entity authorized to conduct business in the state.
- File Articles of Organization:
- Prepare the Articles of Organization, which is the formal document required to create an LLC in Ohio.
- You can file online using the Ohio Secretary of State’s online filing system or submit a paper form by mail.
- For online filing, visit the Ohio Secretary of State’s website: Ohio Secretary of State Online Filing.
- Pay the Filing Fee:
- Include the filing fee along with your Articles of Organization. As of September 2021, the filing fee for an LLC in Ohio is $99.
- The fee can be paid online or by including a check or money order with your filing.
- Create an Operating Agreement:
- Although not required by Ohio law, it is advisable to create an operating agreement for your LLC.
- The operating agreement outlines the ownership structure, management responsibilities, and other important provisions of your LLC.
- This agreement helps establish the internal rules and regulations of your business.
- Obtain Required Permits and Licenses:
- Depending on your business activities, you may need to obtain specific permits and licenses at the local, state, or federal level.
- Visit the Ohio Business Gateway’s website to search for permits and licenses applicable to your business: Ohio Business Gateway.
Forming an LLC in Illinois – Summary
LLC Illinois – To form an Illinois LLC, you’ll need to file the Articles of Organization with the Illinois Secretary of State, which costs $150. You can apply online or by mail. The Articles of Organization is the legal document that officially creates your Illinois limited liability company. Related: The Best LLC Formation Services in IllinoisHow to start an LLC in Illinois
After you have filed your Articles of Organization, you will need to create an LLC Operating Agreement. You will then need to be registered with the Internal Revenue Service by obtaining an EIN. These guidelines apply to a domestic LLC that was established in the state where you live. A foreign LLC originated from another state. You will need to fill out an Application for Admission To Transact Business in Illinois to register a foreign LLC.Step 1: Name your Illinois LLC
First, you need to name your Illinois LLC. Potential customers and investors will first see your business name when visiting your website. You want your name to reflect the image you wish to project and be something you will want to keep.Name Search | Illinois Secretary of state – Business Services Department Name searching |
Name Reservation | Optional |
Suffix: | Shall contain terms “limited liability company”, L.L.C. “, or “LLC,” and, if formed as a low profit limited liability company pursuant to Section 1-26 of the Act, the term “L3C”. Should consist of alphabetic letters, Arabic or Roman numerals, and symbols that are easily reproduced or readable by the Office Secretary of State. It is the name under, which the limited- liability company transacts in this State, unless the company chooses to adopt an assumed names or names as required by this Act. 805 ILCS SS180/1-10 |
- L.L.C.
- LLC
- Limited Liability Company
- Banking
- Insurance
- Assurance
Register a domain name
Online presence is a key component of running a successful business today. It’s smart to ensure that your desired name is available online as a URL. If your first choice business name is not available for a domain, but your second choice is, this could influence your decision.Illinois Assumed Name of Business
You will need an Illinois assumed company name if you wish to operate your business under a different name than your company name. You must also register assumed business names with the Secretary of state. An assumed business name can be used by LLCs to sell/launch new products or open stores without the need to create a new entity. Here are some examples of DBAs that could be used:- An online puzzle seller wants to be known as ABC Puzzles, LLC by a company called “ABC Toys, LLC”.
- An official company called “ABC Toys, LLC” would like to be sold on Amazon under the name “ABC Toys, LLC”.
- A company called “XYZ Computers, LLC” would like to sell MacBooks through eBay under the name “XYZ MacBooks.”
Trademarks
The Secretary of State database may not show that the desired LLC name is available. However, this doesn’t mean that you can’t use it. Trademarks can be made on business names at the federal and state levels. It’s a good idea also to check with the U.S. Patent and Trademark Office. The search engine can check if your name is already federally trademarked. You can contact the Illinois Secretary Of State to obtain state-level service marks and trademarks.Step 2: Appoint a Registered Agent in Illinois
All Illinois LLCs must have a registered agent. A registered agent is an individual, or business entity, who receives important legal notices for your business. The Illinois registered agent must be:- You can reside in Illinois, or you can be an authorized entity to do business in Illinois
- A physical address is required in Illinois. A P.O. Box will not suffice
- To receive notices (services of process), you must be available during regular hours
- Acceptance of legal notices and important mail from the government
Can I be my own registered agent?
Although you legally have the right to act as your LLC’s registered agent (although there are many reasons why this might not be the best option), Two of the traps are:- It can be difficult to be available for work during business hours.
- It can be embarrassing for your brand to receive a notice from your LLC that it is being sued or has been subject to legal action in front of investors or clients.
Use a registered agent service
Many LLC owners choose to use a professional registered agent service.- You don’t have to change the registered agent address if your business moves
- Avoid embarrassment when you are served with legal notices or documents in front of others
- Respecting the Illinois Secretary Of State’s registration agent requirement
- All service of process notices are sent promptly and will be acknowledged.
Step 3: File Illinois Articles of Organization
Next, you will need to file Articles of Organization. The Illinois Articles of Organization are the documents you use to register your LLC. These documents will be filed with the Illinois Secretary of State Department of Business Services Limited Liability Division and you will need to pay the filing fee ($150). You can either file your Articles of Organization by mail, in person or online.Agency: | Illinois Secretary of state – Business Services Department |
Form: | Form LLC. 5.5: Articles of Organization |
Instructions: | Public c334 – A Guide for Organizing Domestic Limited Liability Companies |
Filing Method | Mail, Fax (only if your prepaid account is active), or on-line |
Agency Fee | $150 + $100 expedite fees. If you file online, an expedite charge is required. |
Turnaround: | 2 weeks for mail or fax. 1 business day with $100 expedite cost |
Law: | 805 ILCS180 |
Notes: |
|
Information Required for Your Illinois LLC Articles of Organization
These should be included in your Articles of Organization:- Name of your LLC in Illinois (including LLC designator)
- Your business address (the address at which your LLC is headquartered)
- Your Articles of Organization’s effective date
- Notice: An LLC’s existence is generally established when the Department of Business Services files the Articles of Organization. You can specify a later date, but not more than 60 days.
- Your registered agent’s name and address
- Your Illinois LLC’s purpose
- The term of your LLC’s existence
- Notice: An LLC’s duration is “perpetual”, unless specified otherwise.
- Names and addresses of initial managers, or members with authority to manage,
- Optional provisions (such management structure and other provisions that would be included within an operating agreement)
- Signature(s), of the organizer(s).
Organizers
One or more organizers can form an LLC. An organizer could be a person over 18 years old or a business entity. The Articles of Organization must be signed by each organizer. Each organizer’s name must be printed or typed in the appropriate section. A business entity acting as an organizer must provide the exact business name, typed or printed name, and signature of the person who is representing the entity.Editing Your Filing
It generally takes the Secretary of State approximately 10 days for Illinois Articles of Organization to be processed and approved by him. You can expedite your filing for an additional fee to receive 24-hour service (except weekends and holidays). Why would I want to delay my Illinois LLC filing? Sometimes entrepreneurs will choose to delay filing their LLC’s formation date. If the filing date is near the end, the business does not need to begin for several months. Many business owners delay filing their tax returns to avoid paying taxes in the following calendar year. Your LLC’s effective date in Illinois is the date that the Secretary of State Department of Business Services “files your Articles of Organization.” You can specify a later date up to 60 days into the future. We can also help with this. We offer the option to delay your LLC’s effective dates by charging an additional fee when you create your Illinois LLC. (Note: This service can only be used from October through January.Amendment Articles of Organization
Only one Articles of Organization must be filed. You will need to file LLC Articles of Amendment if you have to make any changes (such as changing the registered agent’s address). We also offer amendment filing services that will help you file any amendments. The Worry-Free Compliance Service includes two amendment filings each year.Limited Liability Companies (PLLCs),
Current state law requires that any LLC providing professional services in Illinois must be registered as a limited liability company or PLLC. Lawyers, accountants, architects, and doctors are all common professions that require professional licensure. To determine if you are required to create a PLLC, check with the state licensing agency in your industry.Series LLCs
Illinois is one of few states that allows Series LLCs. When you register both a primary LLC and one or more offshoot LLCs, you are called a Series LLC. An example of when Series LLCs may be useful is when an entrepreneur has multiple rental properties and wants to separate the liability for each. Please note: At this time, we do not offer the formation of Series LLCs.Low-Profit LLCs
The low profit limited liability company or L3C is another type of business entity that Illinois allows. This designation is similar to a nonprofit and is reserved for LLCs that “at all times significantly advance the accomplishments of one ou more charitable or educational purposes …””. In your Articles of Organization, you must indicate that you intend to become an L3C. The Secretary of State has more information about L3C requirements.Step 4: Create an Illinois LLC Operating Agreement
Next, you need to create an Illinois operating contract. An operating agreement, even though it is not required by Illinois law, outlines how your LLC will operate.Illinois Operating Agreement Benefits
The benefits that an LLC operating agreement provides are numerous. These include:- We can help you avoid disputes over assets and responsibilities
- You can customize the company’s rules and procedures. Without an operating agreement, for instance, your LLC management structure defaults to member-managed.
- Describe how you want your business to be managed and operated.
- In the event that a member leaves or dies, create a succession plan
- Make your business appear more legitimate to the courts
- Your Illinois LLC’s management structure (member-managed, manager-managed).
- In the event that your family members die or are incapacitated, a succession plan is necessary.
- Allocation of ownership (who gets which share of the profits)
- The admission process
- Who is authorized to act for the business?
- Plans for dissolution or winding up
Use an operating contract template
It can be overwhelming to try to think of everything you should include in an operating agreement, especially if it’s your first time. To help you get started, we have an operating contract template.Step 5: Apply for an EIN
You will need an Employer ID Number (EIN). This number is also known by the Federal Tax Identification Number, (FTIN), or Federal Employer Identification Number. Your EIN is similar to a Social Security Number for individuals or sole proprietors. It identifies your company to the Internal Revenue Service. This number is needed by small business owners to pay business taxes open business bank accounts or hire employees.Agency: | Internal Revenue Service |
Form: | IRS SS-4 |
Filing Method | Mail, phone or fax |
IRS fee | $0 |
Turnaround: | Instantly online or by phone 4 business day by fax. 4-5 weeks via post |
Notes: | The IRS website can only be accessed during specific hours. Before closing your session you should print your EIN. For additional guidance, refer to IRS Publi 1635: Understanding Your. |
Open a bank account for your business
The separation of personal and business assets is one of the main benefits of an LLC. It is important to avoid commingling funds to reap an LLC’s benefits. To manage the finances of your LLC in Illinois, you will need a bank account.Illinois LLC FAQs
What is the cost of forming an LLC in Illinois?
A $150 state filing fee is required to create an LLC in Illinois. This fee must be paid to the Illinois Secretary Of State.Is there an annual fee for LLCs in Illinois?
In addition to the $75 fee, an annual report must be filed each year.What is the average time it takes to create an LLC in Illinois?
Approval of an LLC in Illinois takes approximately 3-4 weeks. However, for an additional fee, one-day processing can be possible.Are you able to be your own registered agent in Illinois?
Anybody can be a registered agent provided they are at minimum 18 years old, a resident of the State, and generally available during business hours.Is an LLC required to obtain an Illinois business license?
Sometimes it is believed that an LLC and a business license are one and the same in Illinois. However, they are not. The business entity is also known as an LLC. It is the way the business is organized and conducted business. A business license allows you to operate legally.Is it possible to use a PO box for your LLC in Illinois
A PO Box cannot be used for the mailing addresses of the LLC. The Principal Place of Business or Registered Agent must provide a physical street address in Illinois.How do I check if my Illinois LLC name is still available?
A free Illinois LLC name search can be done on the Illinois Secretary Of State’s database.What is a Foreign Limited Liability Company (FLLC)?
An Illinois foreign LLC can be an LLC that was established in another state but is now able to operate in Illinois. Being physically operational means that you have a physical presence, such as an office or employee.Illinois Business Resources
LLC Services in Illinois Illinois Registered Agents Cost to Start an LLC in Illinois Business Name Search in Illinois Get a Business License in Illinois
Brian Wilson is the content manager and founder of LLC Radar.
Brian grew up in North Texas, just outside of Dallas, and has a bachelor’s degree in business journalism from Southern Methodist University. Since graduating from SMU, Brian has gained over 10 years of experience in business writing for several online publications.
Brian resides in Plano, Texas and he can be reached by email: info@llcradar.com
Phone: 972-776-4050