You’ll want to take care of a few crucial details before you move forward with forming your LLC. These steps will help you avoid unnecessary delays or wasting money.
Step 1. Select Your LLC Name
Illinois requires your LLC name to be distinguishable from every other LLC or corporation name registered or reserved in the state. To avoid having your formation paperwork rejected, be sure to research business name availability using the Department of Business Services search engine. It is also possible to reach out by phone regarding LLC name availability by dialing 217-524-8008.
You should prepare alternative business names just in case your first choice is not available.
Reserve Your LLC Name (Optional)
To hold a name for business use, you must file Form LLC-1.15, the Application to Reserve a Name. The form also lets you transfer or cancel a name reservation. The filing fee to apply for a business name is $25; if you wish to cancel your reservation, the price is only $5.
This form will hold your desired LLC name for up to 90 days; filing this form is not the same as forming an LLC. It is also not mandatory. If you aren’t ready to file your formation paperwork yet, this is an excellent first step in ensuring your preferred name will be available for use once you establish your Illinois business entity.
Illinois LLC Naming Requirements and Exceptions
When naming your business entity, you must by law include “Limited Liability Company” or the abbreviations “LLC” or “L.L.C.” However, in Illinois, any business entity providing professional services licensed by the Illinois Department of Financial and Professional Regulation must use “Professional Limited Liability Company” or abbreviate it to “PLLC” or “P.L.L.C.”
Likewise, a worker cooperative must use the term “Limited Worker Cooperative Association” or abbreviations “LWCA” or “L.W.C.A.”
Step 2. Hire a Registered Agent
Illinois requires you to appoint a registered agent to receive legal documents on behalf of your business. An agent can be an Illinois resident or a company authorized to do business in Illinois. The agent must have a street address in the state, known as the registered office.
You or one of your employees can act as a registered agent as long as you meet the requirements. LLCs and corporations are not legally able to act as their own registered agents in Illinois. You can also appoint a registered agent to act on your behalf. You can spend as much as $300 or as little as $49 per year; it usually comes down to the quality of service, so be sure to ask questions and read reviews.
Step 3. Submit Illinois Articles of Organization
To form an LLC in Illinois, you must file Form LLC-5.5, or the Articles of Organization, with the Secretary of State’s Department of Business Services. You could choose to make the formation effective on the filing date or at a later time, as long as it does not exceed 60 days.
You can complete the entire process online. Otherwise, submit all documents to:
Secretary of State
Department of Business Services
Limited Liability Division
501 S. Second St., Rm. 351
Springfield, IL 62756
The filing fee is $150. Make your certified check, cashier’s check, certified public accountant’s check, Illinois attorney’s check or money order payable to Secretary of State.
Foreign Business Entities Operating in Illinois
If you own a foreign or out-of-state entity and wish to operate within Illinois, you must complete a Form LLC-45.5. The process costs $150.
