Frequently Asked Questions About Starting an Illinois LLC

To form an LLC in Illinois, you need a unique business name that includes "LLC" or "Limited Liability Company," a registered agent with a physical Illinois address, completed Articles of Organization (Form LLC-5.5), and the $150 state filing fee paid to the Illinois Secretary of State, Department of Business Services.

After the state approves your filing, you'll also want to get a federal Employer Identification Number (EIN) from the IRS and check whether your business needs any state or local licenses.

You file an LLC in Illinois by submitting Articles of Organization (Form LLC-5.5) to the Illinois Secretary of State, Department of Business Services. You can file online through the Secretary of State's system at ilsos.gov or by mailing a paper form. Either way, the state filing fee is $150.

Your Articles of Organization need to include your LLC's legal name, the address of your principal place of business in Illinois, your registered agent's name and address, and whether the LLC will be member-managed or manager-managed.

The state filing fee to form an Illinois LLC is $150, paid to the Illinois Secretary of State when you submit your Articles of Organization. This is the minimum required cost if you file on your own and serve as your own registered agent.

After formation, Illinois LLCs also pay a $75 annual report fee each year. If that report is filed more than 60 days late, the state adds a $100 penalty on top of the $75 fee.

Once you file your Articles of Organization, the Illinois Secretary of State generally takes up to 10 business days to process the filing and legally create your LLC. Online filings are typically processed faster than paper filings sent by mail.

Processing times can vary depending on the Secretary of State's current volume. If your timeline is tight, filing online gives you the best chance of a faster turnaround.

You can search for available LLC names in Illinois through the Illinois Secretary of State's online business name database at apps.ilsos.gov. Enter your proposed name and check whether any existing entity is using the same or a confusingly similar name. If the search returns "no results found," the name is likely available.

Your LLC name must include "Limited Liability Company," "LLC," or "L.L.C." and can't use words like "corporation," "incorporated," or "inc." that imply a different entity type. The Secretary of State will reject your filing if the name doesn't meet these rules.

Yes. Every LLC registered in Illinois — domestic or foreign — is required by law to appoint and continuously maintain a registered agent in the state. The registered agent receives legal documents, government notices, and service of process on behalf of your LLC.

Your registered agent must have a physical street address in Illinois — a P.O. Box doesn't meet the requirement — and must be available during normal business hours, generally Monday through Friday, 9 AM to 5 PM. You can serve as your own registered agent, or you can use a registered agent service.

To change your registered agent in Illinois, file a Statement of Change with the Illinois Secretary of State. This updates the official record to reflect your new registered agent's name and address. Your LLC must have a registered agent on file at all times — there's no gap period allowed.

It depends on your situation. Illinois recognizes several for-profit business structures, including LLCs, S Corporations, and C Corporations. For many entrepreneurs, an LLC offers a practical balance — personal liability protection without the administrative requirements that come with a corporation.

The right structure depends on how you plan to be taxed, whether you'll have investors, and how many people will own the business. A tax professional can help you figure out which structure fits your specific goals.

It depends on how you want to run the business. In a member-managed LLC, all owners share authority over day-to-day decisions. In a manager-managed LLC, you designate one or more managers to handle operations — and non-managing members generally stay out of ordinary business decisions unless the operating agreement says otherwise.

You indicate this choice in your Articles of Organization when you file. Most small LLCs with active owners default to member-managed. Manager-managed structures are more common when some owners are passive investors.

Yes, in most cases. An Employer Identification Number (EIN) is a 9-digit number issued by the IRS to identify your business for federal tax purposes. Your Illinois LLC needs an EIN if it has more than 1 member, has employees, or is taxed as a partnership or corporation.

A single-member LLC with no employees may be able to use the owner's Social Security number instead, but getting an EIN keeps your personal number off business documents and is required before opening most business bank accounts. You can apply for an EIN for free at irs.gov.

By default, an Illinois LLC is taxed as a pass-through entity. That means the business itself doesn't pay federal income tax — profits and losses flow through to the owners' personal tax returns. A single-member LLC is taxed like a sole proprietorship; a multi-member LLC is taxed like a partnership.

Illinois also has a personal property replacement tax that applies to LLCs. Depending on your business activities, you may have additional state or local tax obligations. A tax professional can help you figure out what applies to your specific situation.

Yes. Illinois allows the formation of series LLCs. A series LLC is a single LLC that can have separate "series" — each with its own members, assets, and liabilities — that are legally shielded from one another within the same overall structure.

Series LLCs are more complex to set up and maintain than standard LLCs. If you're considering this structure, talk to a legal professional to make sure it fits your situation.

Articles of Organization are the formation document for an LLC. Articles of Incorporation are the formation document for a corporation. In Illinois, you file Articles of Organization (Form LLC-5.5) to form an LLC — not Articles of Incorporation, which is a term that applies to corporations.

Both documents serve the same basic purpose — officially registering your business with the state — but they apply to different entity types. If you're forming an LLC, you'll always use Articles of Organization.

It depends on your industry and location. Illinois doesn't issue a single general business license, but your LLC may need federal, state, county, or municipal licenses and permits depending on what you do and where you operate. Regulated industries — things like healthcare, legal services, or food service — typically require additional authorizations.

Forming your LLC with the Secretary of State is separate from getting local business licenses. Check with your city or county to find out what's required where you operate.

Yes. If you want to run your Illinois LLC under a name different from its legal name, you can register an assumed name — also called a DBA ("doing business as"). This is a separate filing from your Articles of Organization and doesn't replace any required local business licenses.

If you want to change your LLC's actual legal name — not just add a DBA — you'd file Articles of Amendment with the Illinois Secretary of State instead.