How To Form A C Corp In Illinois
Congratulations! As a prospective new business owner, you’ve made an excellent choice choosing to form an LLC in Illinois. As exciting as this time is, it’s imperative that you meet a few criteria and requirements. Failure to do so could delay the process of forming an LLC in Illinois significantly.
Choose The Correct Name
Those interested in forming an LLC in Illinois should begin by choosing a name for their new business. However, potential business owners are not allowed to select a name at random for their corporate filings. First and foremost, new business owners should check to ensure that the name is not already in use by another company. No two LLCs can have the same name in Illinois. Prospective owners can see the names already on file with the Secretary of State’s office by looking through the Business Service Name Database.
If a prospective owner comes up with a name that is not yet taken, they have the option of reserving the name by filing a Form LLC-1.15. Submitting this form to the Secretary of State’s office reserves the title for 90 days. Reserving an LLC name will cost prospective owners $25.
It’s also worth noting that the last words of an LLC business name in Illinois must include either “limited liability company,” “L.L.C.,” or “LLC.” Whereas it’s allowed in some states, Illinois does not allow the abbreviations “Ltd.” Or “Co.”
The Secretary of State’s office withholds the final say on all corporate names. If a prospective business submits Articles of Organization with a name that is not distinguishable from a name already in use, the Illinois Secretary of State’s office will reject the application. Potential owners should take time to comb through the Business Service Name Database carefully.
Many business owners panic when they realize the name they’ve been dreaming of for their new business is not available because it is not distinguishable from other entities already registered with the state. This is not something over which business owners should fret. They should instead focus on choosing a name that is broad in scope. LLCs in Illinois have the option to file a Doing Business As form to declare that they will be operating under a name different than their corporate name.
Hire A Registered Agent
After choosing a name, prospective owners looking to form an LLC in Illinois must select a registered agent to represent their company. The registered agent is tasked with receiving all legal correspondence for the company, in addition to any potential lawsuits in which the company is named a party. The agent is then responsible for passing this information along to the LLC’s owners.
If the LLC owners do not receive this information from the registered agent, their company could risk missing critical deadlines. If the LLC misses deadlines or fails to respond to notices, it could be subject to penalties and perhaps even administrative dissolution. Thus, it’s crucial that LLC owners select a registered agent who they can trust. It could potentially be in their best interest to hire a third-party company who specializes in registered agent services, such as DoMyLLC.
Registered agents in Illinois must either be an individual who is at least 18 years old or a third-party company authorized to conduct business in the state. The registered agent must provide a physical address in the state of Illinois at which they are located during regular business hours.
Submit The Articles Of Organization
Now that owners looking to form an LLC in Illinois have chosen a name and hired a registered agent, they can begin the process of filing their Articles of Organization. To do so, prospective owners must submit a Form LLC-5.5 to the Secretary of State’s Department of Business Services. When providing the Articles of Organization, business owners must include the:
- Corporate name of the LLC
- LLC address
- Information about the registered agent, including the agent’s name and address between these effective dates
- The purpose of the LLC’s organization
- A statement indicating the expected duration or lifespan of the company or if the company will be perpetual
- The management structure of the LLC
- The names and addresses of initial managers or members
- The name and address of the organizer
- Filing fee of $150
Those looking to form an LLC in Illinois have the option of submitting the Articles of Organization either online or by mail. If the prospective owners choose to send the paperwork online, the filings are automatically handled on an expedited basis. The state indicates that they will process accelerated Articles of Organization within 24 hours.
Draft The Operating Agreement
Although the state of Illinois does not require LLCs to submit an operating agreement, it’s highly recommended that new owners come up with one. The operating agreement contains information regarding how the company will transact business. It will also include information about the structure of the business, such as how many managers are in the company and how the company elects to pay these managers. Having a written, defined operating agreement could prevent future turmoil in the company.
Prepare To File The Annual Report
The state of Illinois does not have an initial reporting requirement when it comes to reporting, but companies should still be knowledgeable about when the first submission is due. For those who have formed an LLC in Illinois, the annual report is due to the Secretary of State’s office on the first day of the month in which the company was organized. For example, if a company became a legal entity on October 29, 2018, its first annual report would be due on October 1, 2019.
Business owners can file the paperwork online or mail a completed Form LLC-50.1 to the Secretary of State’s office. Businesses must pay $75 to submit this form. LLCs have 60 days after the due date to file their annual report. If they fail to do so after 60 days, the Secretary of State’s office will assess a $300 late fee. The registered agent should receive notice of the upcoming annual report deadline.
DoMyLLC Can Assist With Your LLC Filing
Not only can DoMyLLC serve as the registered agent for your company, but we can also help you with other aspects of the filing process. When working with us, you can rest assured that your Illinois LLC paperwork will be filed correctly.