How to Start an LLC in Illinois

Last updated on 03 Apr 2025

How to Form an LLC in Illinois | Complete Guide

A Step-by-Step Guide

How to Form an LLC in Illinois

Starting an LLC in Illinois is an effective way to protect your personal assets while managing your business with limited liability. Though the process is fairly simple, it can be time-consuming and a bit overwhelming for first-timers. To help, we've outlined the key steps to starting your LLC in Illinois along with updated guidance on the process.

Key Benefits

Personal Asset Protection

An LLC provides a legal barrier between your personal assets and business liabilities, protecting your savings, home, and other personal property from business debts and lawsuits.

Tax Flexibility

LLCs offer pass-through taxation by default, meaning business income passes through to your personal tax return, avoiding double taxation while providing options for how you're taxed.

Management Freedom

Illinois LLCs provide flexibility in management structure, allowing you to choose between member-managed or manager-managed operations to suit your business needs.

How to Form an LLC in Illinois in 3 Steps

Select a Distinct Name for Your Illinois LLC

When you create your Illinois LLC, selecting a unique name that is not already in use is important. You need to make sure the name is acceptable under Illinois regulations. The name should be distinct from any business already registered in the state.

Required Words: Your LLC name must include "Limited Liability Company" or an abbreviation such as "LLC," "L.L.C.," "Ltd.," or "Co."
Prohibited Words: It must not have words that give the impression it is a government agency, e.g., "FBI," "State Department," or "Treasury."
Restricted Terms: Your name must not have words such as "Agency," "Board," "Bureau," or "Department" unless the state permits.
Domain Name: Look up the availability of your preferred domain name as well to ensure that someone does not grab it before you are able to use it for your business website.

Choose a Registered Agent for Your LLC

In Illinois, all LLCs are required to appoint a registered agent. The registered agent receives legal documents, government notices, and tax forms on behalf of the LLC. The agent may be an individual or a professional registered agent service.

Illinois Requirements

Must have a physical street address in Illinois. Must be present to accept documents during normal business hours. May be an LLC member or a third-party service.

Professional Service Benefits

Employing the services of a professional registered agent ensures that your LLC is up to date on state requirements and can receive and process important legal mail without unnecessary delay.

Top Recommended Registered Agent Services

ZenBusiness

ZenBusiness is a great choice for those wanting to rapidly establish their LLC in Illinois while being legally compliant. Their registered agent service is $199 per year and comes with access to an easy-to-use dashboard to organize your LLC's documents.

Cost-effective and speedy LLC formation.
Comes with worry-free compliance to keep you current on state requirements.
Used by thousands of business owners nationwide.

Disadvantages: Does not offer services for nonprofit LLCs.

Northwest Registered Agent

With over two decades of experience, Northwest Registered Agent offers professional registered agent services for Illinois LLCs. They provide secure online access to your business documents and ensure your LLC stays in good standing.

Affordable $125 annual fee for registered agent services.
High level of customer support and privacy protection.
Handles all compliance matters to keep your LLC in good standing.

Disadvantages: Their services cost more than some other companies.

File the Articles of Organization with the State

After you've chosen a name and a registered agent, you can file your LLC's Articles of Organization with the Illinois Secretary of State. This is the official document that formally creates your LLC in the state.

Filing Fee

The normal fee for filing the Articles of Organization in Illinois is $150.

Processing Time

Standard processing takes around 10 business days, but you can have it expedited for $100 more to get your LLC formation documents in one business day.

Filing Methods

Online Filing: You may file your Articles of Organization online through the Illinois Secretary of State website.
Mail Filing: If you prefer to file via mail, mail your documents to:
Department of Business Services
Limited Liability Division
501 S. Second St., Room 351
Springfield, IL 62746

Post-Formation Checklist for Your LLC

After your LLC is registered, you should follow these steps to properly set up your business:

Keep Personal and Business Finances Separate

It's essential to maintain personal and business finances separate. Open a business bank account to avoid any commingling of personal and business funds. This will safeguard your personal assets in case of a lawsuit.

Employ a Business Accountant

Employing an accountant is a good move to make in order to properly do your taxes and on schedule. An accountant can also aid you in your bookkeeping as well as maintain your LLC finances effectively.

Consider Business Insurance

Even if you have a small business, taking insurance can protect you from such risks as claims and lawsuits. Depending on what type of business you have, take general liability, professional liability, or workers' compensation coverage.

Write an Operating Agreement

While not necessary in Illinois, an Operating Agreement is strongly advisable. This contract details how the LLC will operate and what is expected of each member, eliminating the possibility of conflict.

Frequently Asked Questions (FAQs)

What does it cost to start an LLC in Illinois?

The cost to file Articles of Organization in Illinois is the standard $150. Expedited service costs another $100, in which you get your documents in one business day.

Is an LLC allowed to have a DBA name?

In Illinois, the majority of LLCs don't require a DBA except when they are planning to use a name that is other than the legal name of the LLC. If you want to use another name, you will be required to file it with the state.

How long does it take to form an LLC in Illinois?

Standard processing of your Articles of Organization is about 10 business days. But if you opt for expedited filing, you can get your LLC approved within one business day.

Can I be my own registered agent in Illinois?

Yes, you can be your own registered agent in Illinois, provided you have a physical address in the state and are present during normal business hours to receive legal documents.

Is an Operating Agreement necessary for an LLC in Illinois?

Though it is not a legal requirement in Illinois, it is highly recommended. It provides a template that defines your LLC's management style and procedures so that the members are in no doubt. This also guards the limited liability of the company.

Do I need an EIN (Employer Identification Number) for my LLC in Illinois?

If your LLC will have employees or if you will be filing taxes as a corporation, you will require an EIN from the IRS. It's also necessary for opening a business bank account.

Are there any Illinois LLC annual requirements?

Illinois LLCs must file an annual report with the Secretary of State, but there is no fee. The report must be filed annually on the anniversary of the date the LLC was formed.

Ready to Start Your Illinois LLC?

Starting an LLC in Illinois is a great choice for protecting your personal assets while running your business. By following these steps and ensuring compliance with Illinois state requirements, you'll be well on your way to success.

Get Started Today