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.
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.
Then make sure you receive an EIN (Employer Identification Number), a requirement if your LLC has more than two members. The EIN is issued by the IRS and is used for tax purposes. It is mandatory to register with the Illinois Department of Revenue either via e-mail or by filling an online form.
Create an operating agreement. Operating agreement states the ownership and the operating procedures for any LLC. LLC operating agreement is not a must for LLC in Illinois but it is advisable to have one in case your LLC have more than one member. The state acknowledges the Limited Liability Company operating agreement as the document governing it. You can create an operating agreement through a lawyer. Operating agreement is important when creating relationship with co-owners for an established business.
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.
The State's website also provides information on types of taxation. LLCs are of course subject to federal income tax, the amount of which depends on the type of taxation you will choose. Visit the website, get informed and conclude on what suits you best.
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.
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.
Then make sure you receive an EIN (Employer Identification Number), a requirement if your LLC has more than two members. The EIN is issued by the IRS and is used for tax purposes. It is mandatory to register with the Illinois Department of Revenue either via e-mail or by filling an online form.
Create an operating agreement. Operating agreement states the ownership and the operating procedures for any LLC. LLC operating agreement is not a must for LLC in Illinois but it is advisable to have one in case your LLC have more than one member. The state acknowledges the Limited Liability Company operating agreement as the document governing it. You can create an operating agreement through a lawyer. Operating agreement is important when creating relationship with co-owners for an established business.
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.
The State's website also provides information on types of taxation. LLCs are of course subject to federal income tax, the amount of which depends on the type of taxation you will choose. Visit the website, get informed and conclude on what suits you best.
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