There are numerous reasons why potential business owners choose to start an LLC in Illinois. As a potential business owner yourself, you should consider doing so. While franchise opportunities may seem like the best option, that is not always the case. Limited Liability Companies are very beneficial for business owners. However, they can be costly. In Ilinois, LLC fees have been reduced. Throughout 2017 and 2018, both filing and annual report fees for starting an LLC were lowered. Illinois could be a great, inexpensive place to startup your business. Continue reading for 5 steps to start an LLC in Illinois.
Name Your Brand
Firstly, decide on a name for your LLC. While creativity is key, there are also state requirements and restrictions. For example, you are required to incorporate the abbreviation “LLC” into the name of your brand. Certain words are also banned. For instance, words that could mislead others into thinking your business is a government agency are banned. Create your brand name with these conditions in mind. Also, keep in mind the marketing elements of your business. While a brand name is essential, blogging for startups is also advised. Once you have decided on a name, run it through the State of Illinois website. The site will tell you whether or not the name is already taken. This is the first step to take to start an LLC in Illinois.
Designate An Illinois Registered Agent
Another requirement is to choose an Illinois registered agent. The state of Illinois requires LLC owners to do so for legal reasons. Without a registered agent, you will not be able to obtain any legal documents. Therefore, this step is absolutely necessary. Once you appoint a registered agent, inform the Business Services Department of the Illinois Secretary of State. They will file your agent in their public records. Then, any inquiries and/or important papers can be sent to your agent. You want to begin receiving significant paperwork as soon as possible. So, do not hesitate to complete this step to start an LLC in Illinois.
File Articles of Organization
To start an LLC in Illinois, you must also file articles of organization. With that being said, you are not done with the Illinois Secretary of State after informing them of your registered agent. You are also required to file articles of organization with them. Multiple components of the articles must be included. Firstly, include the name of your brand and your location. Secondly, list the names and addresses of any managers you have hired. Thirdly, indicate the date of dissolution if there is one. Lastly, provide your own name and address. Depending on the type of LLC you start, these components may vary. After building the articles of organization, send them to the Secretary of State. This step requires a fee. Guarantee you can pay it when you send in the paperwork. This is a major step to start an LLC in Illinois.
Create An LLC Operating Agreement
An LLC operating agreement is also crucial to start an LLC in Illinois. Although it is not mandatory in Illinois, creating one is a smart business decision. With an LLC operating agreement, you will be able to protect your rights as a Limited Liability Company owner. Furthermore, the agreement can assist you understand and maintain your financial and management situations. Include factors such as members’ rights and responsibilities, allocation of profits and losses, and LLC management structure. Acknowledge how powerful and advantageous creating an LLC operating agreement can be to start an LLC in Illinois.
Open A Separate Bank Account
Lastly, open a separate bank account for your LLC. Many new business owners make the mistake of combining their personal and business bank accounts. Combined accounts create a lot of hassle and potential profit loss. To ensure that your Limited Liability Company does not suffer, open up a separate bank account. In order to do so, you must obtain an EIN (Tax ID number). You are also required to have a copy of your articles of organization. As a potential business owner, understand the significance of keeping your LLC finances separate from your personal ones. Furthermore, consider small business bookkeeping to accurately keep track of your finances. Jumpstart your business by managing a separate bank account. Do so to effectively start an Illinois LLC.
Perhaps you are looking into forming an LLC in Illinois because you live there. Maybe you are looking in that specific state because of the lowered fees. Regardless, you can prosper if you start an LLC in Illinois. To do so, you must follow a few steps. Firstly, come up with an appropriate name for your LLC. Next, choose a registered agent. Then, file articles of organization. Once that is complete, create an LLC operating agreement for optimal protection. Additionally, you must open a business bank account. Follow these steps to effectively start an LLC in Illinois.