Are you an entrepreneur on the verge of formalizing your business by creating an LLC in Illinois? If so, you’ve chosen the right path from the start. An LLC framework is a perfect match for smaller and bigger enterprises alike. It makes an easy start for a local private venture and will catch up with the dynamic potential of a growing venture.
The best thing about an LLC in a legal plane is that this entity structure sets apart the owner and company assets. It’s a proverbial corporate veil that stands on the guard of the members’ personal property against the enterprise's liabilities. In the meantime, the company operates independently as a legal person with its own rights, powers, responsibilities, and duties.
Registering an LLC is rather a formality. You just need to submit the LLC statute to the state and get it approved by the regulator. There are some specific details pertinent to this process in each state, so here, we’ll consider how to file the Articles of Organization in Illinois. You’ll find out everything you should know to successfully handle the registration on your own.
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LLC structure and formation requirements are regulated by the state. Hence, the rules toward the foundation documents are also state-specific. If you are a first-time filer and wonder what the Articles or Certificate of Organization in Illinois, an Operating Agreement, and a Certificate of Good Standing mean for an LLC, keep on reading.
Your LLC’s main document, it’s a kind of passport or a certificate of birth since it brings your enterprise to a legal existence as an entity that will be controlled and managed by you, yet won’t be directly associated with you.
Once registered by the state, an LLC statute activates your limited liability shield that will split your own and company funds and ensure your money and property won’t be used to offset financial problems and unfulfilled commitments of your firm.
The Articles of Organization is a must-have instrument for your Illinois LLC. Unless you file it with the state, your LLC won’t be considered formed. At the same time, this document is quite simple and straightforward. It enlists the basic info about your future enterprise that is to be made a part of public records and appear in business databases and registries.
Straight off the reel, unlike an LLC statute, an Operating Agreement is not required by law in the state of Illinois. As such, the instrument needs no filing and state registration and works as an enterprise bylaw. To be enforced, an Agreement should be simply signed by the LLC members.
The major difference between this instrument and the Articles of Organization is in its function. While the statute verifies the entity formation and legitimacy, an Agreement is an internal operational tool used for day-to-day business management.
Yet another characteristic feature of this bylaw is its customizable content. While there are certain standard aspects to be covered, it’s up to you and your LLC partners to decide on the points to be included in this document. The main aim is for the business owners and managers to agree on the key management and operational principles to avoid any disputes and misunderstandings in the future.
Common issues normally stipulated in the Operating Agreement are the company ownership and management structure, member and manager voting rights, regular powers and duties, profit distribution, operating routines, and a dissolution procedure. You can add any other related entries you deem necessary.
An important thing to remember about this internal member agreement is that it has a priority over default laws in court and will enable you to run your enterprise as you want rather than to be governed by generic rules.
It’s yet another document issued by the state regulator. While the Articles of Organization are submitted to initiate and certify legal entity formation, a Certificate of Good Standing is issued to verify that an already formed enterprise is legitimate and is in full compliance with compulsory requirements set forth by the state.
Usually, this instrument is provided on demand. You might need it when applying for a business loan, opening a supportive credit line for your venture, or getting a foreign qualification for your firm in another state.
The Articles of Organization is a more or less standard document that has a unified form and content across the states. At the same time, each state might have some specific legal nuances to be considered when executing an LLC statute. Thus, the Articles of Organization in Illinois should cover the following info:
The LLC statute in Illinois should be signed by a single person that is an LLC organizer. If the entity has multiple co-owners, there is no need for all of them to put their signatures.
Though an important step to make, filing the Articles of Organization with the state regulator is a quite simple procedure. You are only three steps away from your future entity.
As we’ve already mentioned, the LLC statute is a no-frills document generic by nature. So, you won’t have to search high and low to find the necessary form. The web abounds in the Illinois Articles of Organization templates, and even ready-made samples of existing company statutes are available.
The easiest and quickest way to get the right form is to download a pdf template from the Illinois Secretary of State’s website, which is an LLC 5.5 form if you want to submit your documents on paper. Or you could fill out a digital template following the instructions if you choose to file online.
The preparation of the Articles of Organization in Illinois is about collecting all the info you should provide in your LLC statutes. So make sure you have the required data before you sit to fill out the document form. Then, it will take you mere minutes to complete a template or an online form.
Want to know the requirements for articles of organization in other states? Select state:
To file your LLC statute in Illinois, you can either mail it to the regulator’s office or submit an application online.
Surely enough, online filing is much more convenient since it saves you the need to go anywhere. You can do it from anywhere you have access to the Internet. Just enter the LLC formation page on the Illinois Secretary of State’s website, choose a standard or series LLC and follow the instructions to fill out the form.
Online applications are approved within 10 business days and entail a standard filing fee of $150. Should you want to speed up the process, you can go for expedited filing that will be completed within 2 business days and cost you $250.
To file by mail, print out 2 copies of your Articles of Organization and send them to the following address:
Secretary of State
Department of Business Services
Limited Liability Division
501 S 2nd Street, Room 351
Springfield, IL 62756
Paper applications are normally reviewed within 15 workdays and the filing fee is still $150. The original of your approved statute will be forwarded to your registered agent address along with a letter containing the LLC file number.
Unless a foundation document is approved by the state regulator, your Illinois LLC can’t be registered. The most common reason why the filing applications are declined by the state office is an improper business name. Other issues that might cause denial include formation document errors, the lack of filing fee payment confirmation, and violation of the statutory requirements and regulations.
Notably, some states require not only a statute form but also an Operating Agreement to register an LLC. And when filing a professional LLC, you should also provide your valid professional licenses.
|Address:||501 S 2nd Street, Room 351|
Springfield, IL 62756
|Phone:||217-782-6961 (7736 extension for an LLC department)|