Forming an LLC in Illinois provides liability protection, flexible tax treatment, and streamlined operations for over 1 million active businesses statewide. Illinois LLCs shield members from personal liability while offering pass-through taxation by default, with options to elect S-corp or C-corp treatment when beneficial.
The state requires only a compliant name, registered agent, and Articles of Organization filed with the Secretary of State. Late filing triggers $100 penalties and potential administrative dissolution under the Illinois Limited Liability Company Act, 805 ILCS 180.
Illinois distinguishes between absolute requirements that create legal existence and recommended practices that protect your business investment. The state mandates only what's necessary for legal recognition while providing flexibility in operational structure and governance.
Once you've satisfied these core requirements, you can choose from several filing methods with consistent pricing across all submission options.
Illinois offers expedited processing for an additional $100, reducing approval time to 1-2 business days. Series LLCs require Form LLC-5.5(S) with a $400 filing fee, allowing multiple protected series within one umbrella entity, a unique feature available in only a handful of states nationwide.
Illinois requires your LLC name to include "Limited Liability Company," "LLC," or "L.L.C.," and be distinguishable from existing entities in the state database. The Secretary of State maintains a comprehensive searchable online database where you can verify name availability before filing your formation documents. Name selection process:
Optional name services:
Illinois law under 805 ILCS 180/1-35 requires every LLC to maintain a registered agent with a physical Illinois street address. This agent receives service of process, official state correspondence, and legal documents on behalf of your LLC during regular business hours.
The registered agent must be either an Illinois resident at least 18 years old or a business entity authorized to provide registered agent services in Illinois, and must provide written consent to serve in this capacity.
The agent must maintain a physical Illinois street address and be available during standard business hours to receive legal documents and official correspondence. Failing to maintain a registered agent triggers serious consequences, including administrative dissolution, loss of good standing status, missed legal documents that could result in default judgments, and potential personal liability exposure for members.
You can serve as your registered agent if you're an Illinois resident. Still, many businesses choose professional registered agent services to maintain privacy, ensure reliable document receipt, and avoid having personal addresses appear in public records.
Illinois Articles of Organization (Form LLC-5.5) officially creates your LLC's legal existence. File online, by mail, or in person for the same $150 fee.
Required information:
Filing considerations:
While Illinois doesn't legally require Operating Agreements under 805 ILCS 180, creating this internal contract is essential for protecting limited liability status and establishing clear governance structures for your business operations. Essential provisions include:
Banks, investors, and potential business partners typically require Operating Agreements before conducting significant business transactions
Illinois doesn't require a general statewide business license for most businesses, but specific industries need specialized permits and professional licensing before beginning operations. Professional services like healthcare, law, accounting, or financial services require Professional LLC (PLLC) formation with appropriate state licensing coordination and ongoing compliance.
You'll need to apply for a free Employer Identification Number (EIN) directly from the IRS, which is essential for federal tax purposes, opening business bank accounts, and hiring employees. Register for Illinois sales tax permits if you plan to sell taxable goods or services within the state, and check with local municipal authorities about business permits, zoning requirements, and occupancy permits for your specific location.
Some industries require additional state-level licensing, federal licenses, or regulatory approvals before operations can begin legally, so research your particular business type thoroughly and allow adequate time for approval processes.
Maintaining your LLC's legal status and liability protection requires consistent attention to state and federal requirements. Illinois streamlines ongoing compliance compared to many states, but missing critical deadlines can trigger serious consequences, including administrative dissolution and personal liability exposure.
How long does LLC formation take in Illinois?
Online filings typically process within 5-10 business days, while paper submissions take 7-14 days plus mailing time for completion.
Can I be my registered agent in Illinois?
Yes, if you're an Illinois resident at least 18 years old with a physical address, but your address becomes public record.
Do I need an attorney to form an LLC in Illinois?
While not legally required, complex ownership structures or professional services may benefit from experienced legal guidance for compliance.
What's the difference between Articles of Organization and Operating Agreement?
Articles create legal existence with the state government; Operating Agreements govern internal member relationships without state filing requirements.
Discern provides comprehensive professional Illinois registered agent services and automatically tracks every compliance deadline to prevent costly missed filings. Our platform manages annual report submissions and eliminates uncertainty about compliance status across your business operations.
Book a demo today and discover how Discern automates formation processes and compliance management.
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