How to Start an LLC in Illinois
Starting an LLC in Illinois means selecting a name for your business, choosing a registered agent, and filing formation paperwork with the Secretary of State. To keep your business operational, you’ll need to take a few more steps, like building your brand, setting up a business bank account, and filing a BOI Report. We go over everything you need to know to set up your Illinois LLC and take it to the next level.
Create an IL LLC in 5 Steps:
Step 1: Name Your Illinois LLC
When you set out to form an Illinois LLC, naming it is the first official step. You might have a great name in mind already, but before you build a brand around it, make sure it follows the state’s LLC naming requirements.
The rules for LLC names in Illinois say the name must:
- Be unique among businesses registered in the state.
- Include “Limited Liability Company,” “LLC,” or “L.L.C.”
If your preferred business name belonged to an Illinois LLC that has since been dissolved, you must wait three years post-dissolution to use the name.
How to check if a business name is available in Illinois
To find out if an Illinois business name is up for grabs, use the state’s name availability form. Provide up to three name options, along with your email, and the state will reply with information about the names’ use status. Responses typically happen within one business day.
Use your business name to establish your brand
Once you’ve selected an available name for your Illinois LLC, consider how you’ll use that name to build your brand. It’s a good idea to check the name’s availability as a domain name and across social media platforms. Using the same name (or logical variations of it) across mediums not only creates a cohesive brand image, it also makes it easier for customers to return to you time and again.
Step 2: Choose an Illinois Registered Agent
All LLCs in Illinois need to have a registered agent in the state. Your registered agent accepts legal mail, as well as correspondence from the Secretary of State, on behalf of your LLC.
In Illinois, a registered agent can be:
- An Illinois resident.
- A business registered in Illinois.
Additionally, the registered agent needs to have a registered office, which must:
- Be physically located in Illinois.
- Have a street address that matches the agent’s business office address.
Hire us to form your Illinois LLC and we’ll act as your registered agent, too.
Can you be your own registered agent in Illinois?
Yes. You can be your Illinois LLC’s registered agent as long as you’re a resident of the state, and have a physical Illinois address where you can accept service of process during business hours. You must also be comfortable with your information being publicly accessible.
Step 3: File Illinois Articles of Organization
Filing Articles of Organization is what makes your LLC official with the state of Illinois. You can file online or file by mail. You’ll provide the same information for either method, but it appears in a different format. Below you’ll find questions as they appear for paper filings.
Note that if you file online, your session may time out due to inactivity. If it does, you’ll have to start over. Make sure to have all your information ready upfront to avoid duplicate work.
1
Business name
Make sure to include an accepted qualifier like “LLC.”
2
Physical business address
This is the location where company records are kept. It cannot be a PO Box or a forwarding address.
3
Effective date
Most companies are formed as soon as their Articles of Organization are processed. But if you want a different registration date, indicate that here. It must be within 60 days of filing.
4
Registered agent & registered office
Include your registered agent’s name and the street address of the registered office where they’ll accept your legal and state mail.
5
Purpose
Many businesses stick with the standard business purpose provided in the Articles. This says, in part, that your business’s purpose is “the transaction of any or all lawful business.”
6
Duration
Most companies don’t choose an end-date upfront. But if you’d like to, add it here.
7
Additional provisions (optional)
If there’s anything else you’d like to include about your company, you may. Most businesses skip this.
8
Manager info
Provide names and street addresses for all LLC managers, as well as members who act as managers.
9
Organizer
This is whoever files your Articles, like us if we form your LLC. Date, signature, name, and street address are required.
How much does it cost to set up an LLC in Illinois?
It costs $150 to file the Articles of Organization that form your Illinois LLC.
How long does it take for an LLC to be approved in Illinois?
It takes up to 10 business days for Illinois to process your Articles of Organization. You can also select 24-hour service, which costs an additional $100 ($250 total).
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Step 4: Set Up Business Operations
Once your LLC is registered in Illinois, you’ll want to take a few more steps early on to ensure everything is in running order. These include:
Establish an operating agreement.
Illinois does not require that LLCs adopt operating agreements. However, you’ll want to get one in place anyway. Your operating agreement is where you set forth all the rules for your LLC, like what happens if a member leaves, or how much initial funding each member will provide. Without an operating agreement, you’ll default to the rules set forth in Illinois statute.
Get an EIN.
Like a social security number for your business, an EIN is an identifier that’s required in certain scenarios. Applied for through the IRS, you’ll likely need one to hire employees and set up a business bank account. If you end up not needing an EIN, just know that you’ll need to use your social security number in its place.
Create a business bank account.
A business bank account helps you keep your Illinois LLC finances organized, as well as maintain the business’s limited liability. You’ll want to get one in place early on. Typically, members fund the account with an amount equal to their ownership percentage.
Step 5: File BOI Report
The Beneficial Ownership Information (BOI) Report is a new federal filing as of 2024. Most LLCs are required to submit this report, which is free to file. It asks for information about your business and its owners, aiming to create more transparency. The information provided in the reports is not made public, but is held by FinCEN (Financial Crimes Enforcement Network).
LLCs formed in 2024 have 90 days post-registration to file. In 2025, that filing window shrinks to 30 days. If your Illinois LLC needs to file the BOI Report and neglects to, penalties can reach up to $591 per late day. Don’t want to worry about that? When you hire Registered Agents Inc to form your LLC, add BOI filing to keep your peace of mind.
Frequently Asked Questions
What do I need to start an LLC in Illinois?
To start an LLC in Illinois, you need to choose a business name, appoint a registered agent, file your Articles of Organization with the Secretary of State, and pay the $150 filing fee.
Do I have to renew my LLC every year in Illinois?
Yes. Illinois requires LLCs to submit an annual report every year. Reports are due before the first day of your LLC’s anniversary month and can be filed up to 60 days before the deadline. They cost $75 to file.
What is the annual fee for an LLC in Illinois?
It costs $75 to submit your Illinois LLC annual report to the Secretary of State’s office. When you hire us, we’ll file the annual report for you at no extra cost.
Do LLCs pay taxes in Illinois?
LLCs in Illinois are taxed as pass-through entities by default. This means income passes to members who claim it on their personal tax returns. There are not LLC-specific taxes in the state.
How much is self-employment tax in Illinois?
Self-employment tax in Illinois is 15.3%.
What is a series LLC in Illinois?
A series LLC in Illinois is made up of one parent LLC under which children are formed. Each of these children—or, “series”—can have its own interest, members, assets, and liability. If you establish a series LLC, it’s extremely important to keep detailed records so that it’s clear how everything is running.