When setting up a business,you need to check everything that is suitable for your business and that can help your brand become known. An LLC stands for Limited Liability Company, which applies to a company that consists of both partnership and traditional corporations. The main benefit of having an LLC is so that you can protect your personal assets for your business. This can play a huge advantage, in case your company ever gets sued.
Starting up an Illinois LLC is a really easy process and there are many steps for you to complete. First of all, what you should know is that the price to pay for setting up an LLC in Illinois is $150. Here are the steps that you have to follow:
Set up process of LLC
1. Give yourself a name.
This may be simple, but it is very important to remember that when thinking of the name, it has to stand out, be unique and memorable. You have to also consider the fact that legally, your name must have LLC in the title, abbreviated or written in full form. Plus, your name has to be completely different and not similar to any other names used in Illinois.
2. You will have a registered Illinois agent
A registered Illinois agent is your main contact with the state. They basically accept legal and tax documents on behalf of your business. You can hire a registered illinois agent through websites such as LLC formation service. They have to be able to legally represent your company and be living in Illinois state. You can be your own registered agent too. If you wish to apply as your own agent, you simply need to apply by filling your own name and address on the Illinois Articles of Organisation.
3. You need to file Articles of Organisation
You are ready to form your LLC, once you have completed the first two steps. You would need to file Articles of Organisation with the Illinois Department of Business Services Limited Liability Division under the Secretary of State’s office. In order to do this, you need to complete the following:
- Go on the Secretary of State’s website or download a form that you can mail to the Secretary of State’s office.
- Pay $150 in order to be able to file with the state of Illinois.
- Wait 10 days for the processing time, whether you have applied online or not.
4. It’s time to create your operation
You are at the fourth step where you need to clarify and structure your whole operation. That means, you need to decide on your LLC ownership management and structure for your business. This is called the LLC operating agreement.
5. You need an EIN
EIN stands for Employment Identification number. It is basically used by the federal government, so that they can track your business. It will be an advantage for you to have an EIN when you are in the scenarios of opening a business bank account, hiring employees and filing federal and state taxes.
So what is next?
Once you have set up your LLC, you would need to protect your assets by taking a few further steps. You would need to open up a business bank account that is linked to your EIN and that is separate from your personal assets. In order to not have any future issues by interfering your business purchases with your personal purchases, get a business credit card. If you want to avoid any mess in the future, make sure that your paperwork is signed by a designated representative.
Is it really worth it?
Yes, there are many benefits of being part of the community and getting an LLC for your company. You can protect your personal and business entity, have an easy process when it comes to legal documents and of course have a memorable name that clients will remember.