Northbrook Small Business Attorneys
Advising LLCs throughout Chicago and Northern Suburbs
Limited liability companies, or LLCs, are a hybrid business structure that allows for pass-through taxation, as well as liability protection. For these reasons, many individuals choose to organize their business as an LLC. There are several things to consider, however, before you organize your business as an LLC.
At The Wochner Law Firm, our knowledgeable Illinois business organization attorneys have considerable experience helping clients organize their business as LLCs, as well as corporations and partnerships, and we can advise you regarding the pros and cons of each business structure. Once you have chosen the appropriate business structure, we can help you prepare and file the necessary legal documents to effectuate the LLC, corporation, or partnership.
Contact one of the experienced Illinois LLC attorneys at The Wochner Law Firm at (847) 272-7360 to learn more about organizing an Illinois limited liability company.
How to Form an Illinois Limited Liability Company
Once you have decided to organize your business as an LLC, there are several important steps that must be taken in order to effectuate the creation of the LLC.
1. Choose a Name for Your LLC
Although choosing a name for your business may seem like a basic step, there are several legal considerations that go into choosing a name. First, you will need to confirm that the name is available for use in Illinois. The Chicago business organization attorneys at The Wochner Law Firm can confirm that the name you have chosen is available and help you file the necessary legal documents to protect the name.
Illinois law also requires that a limited liability company indicate that it is an LLC in its name, by using the words “limited liability company,” “L.L.C.” or “LLC” in the title.
2. File Articles of Organization
Once your business name is chosen, you must file the company’s Articles of Organization, with the Illinois Secretary of State Department of Business Services. The Articles of Organization must include: the LLC’s name and address, the name and address of the LLC’s registered agent; the business purpose of the LLC; a statement regarding the LLC’s duration; whether the LLC will be manager-managed or member-managed; the names and addresses of the initial manager(s) if manager-managed; the names and addresses of initial member(s) if member-managed; and the name and address of the organizer(s).
3. Appoint a Registered Agent
Every Illinois LLC must have a registered agent within Illinois. The registered agent is an individual or business that agrees to accept legal papers on behalf of the business. A registered agent may be an individual who resides in Illinois, or a corporation authorized to do business in Illinois.
4. Prepare a Membership Agreement and/or Operating Agreement
Although Illinois does not require that an LLC adopt a membership and/or operating agreement, it is highly recommended that LLCs adopt a membership and/operating agreement in order to govern internal affairs of the LLC, such as voting rights and management issues. At The Wochner Law Firm, our skilled Illinois business organization lawyers have years of experience drafting operating agreements on behalf of LLCs and partnerships.
5. Comply With Other Tax and Regulatory Requirements
In some cases, there are tax requirements that apply to the organization of an LLC. For instance, if the LLC has more than one member, it must obtain its own IRS Employer Identification Number (EIN). Moreover, depending on the type of business that the LLC plans to conduct, additional state business licenses may be required. At The Wochner Law Firm, our knowledgeable Illinois business attorneys can help you determine which, if any, additional licenses are required. If additional licenses are required, our office or your CPA can help you complete the necessary legal documents to apply for such licenses.
Contact our Illinois LLC attorneys at (847) 272-7360 to learn more about Illinois limited liability companies.