mercredi 3 décembre 2014

Creating An Illinois LLC Formation

By Ida Dorsey


LLC stands for "Limited Liability Company". Prior to explaining how to proceed with the Illinois llc formation, there is the need to make clear what LLC means. It denotes a business structure that focuses on flexibility, given that the members of an LLC enjoy limited liability. In the State of Illinois there exist LLCs that are corporations, partnerships or even single-member.

The following are essential information needed for LLC formation: name and address of LLC's principal, name and address of the registered agent, the purpose of the Illinois LLC, management type, organizer's name, address and signature, and members' liability and the period of the LLC when it is not perpetual. The names that you provide must be full names.

The next stage is to name your LLC. The purpose of a company's name is to make it stand out from the pack - that is why it has to be unique. In order to achieve that consult the Secretary of State Business. After some research you will find out if your company's name is similar to another's. If that is the case, act accordingly and change it. The name of your LLC must and can only be followed by the abbreviation LLC, L. L. C. Or the full designation "Limited Liability Company".

It is recommended that you select a registered agent for your LLC. A registered agent can be either an individual or a company that is legally permitted to conduct business in Illinois. The agent will handle legal documents on behalf of the LLC and notify its members accordingly.

What follows is the acquiring of an Employer identification Number, abbreviated EIN. EIN is necessary for LLC that have two members or more since it is used for tax purposed. The IRS is responsible for issuing the EIN. Make sure you register with the Illinois Department of Revenue either by filling a form online or by sending an e-mail in the respective address.

Next, you should create an operating agreement. This is a document where the ownership status and the operational procedures of an LLC are stated. It is the document recognized by the State of Illinois as the one governing the LLC. It is not mandatory for an LLC to operate under one such agreement but it is nevertheless recommended, particularly if your LLC has two members or more and if you want to build a healthy relationship with co-owners. In order to create an operating agreement you need to contact a lawyer.

One other document you should focus on is the annual report. Your LLC is legally obliged to provide the State of Illinois with these reports each year before the anniversary of your LLC's founding, either online or by mail. The filling of the annual reports can be carried out either by the manager or a member of the LLC and comes at a cost of $250. Since the fees are susceptible to changes refer to the State Department of Business Services for further information. Bear in mind though that should you fill the annual reports later than expected you will be penalized with a fee of $300.

The State's website also provides information on types of taxation. LLCs are of course subject to federal income tax, the amount of which depends on the type of taxation you will choose. Visit the website, get informed and conclude on what suits you best.




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