Starting an LLC in Illinois is similar to forming an LLC in any other state, but Illinois also gives you the chance to be your own registered agent. Here we’ve discussed both options with a brief summary of how the formation of your LLC will be.
How is an LLC formed in Illinois?
- Create a name that contains the words limited liability company or some abbreviation of it, doesn’t have any restricted words and isn’t used by anyone else
- Appoint a registered agent, which can be a professional or yourself
- File Articles of Organisation – this can be done by a formation service that can also be your registered agent
- Create an LLC Illinois Operating Agreement to outline basic rules on how you’ll run and avoid future disputes
- Obtain an EIN for things like taxes and a business bank account
What exactly does a registered agent do?
The primary role of a registered agent is to accept service of process for you, which is basically legal mail that tells you you are being sued, in the event that someone brings a lawsuit against you. Apart from this, your agent should also record all your important information and keep paperwork up to date so your business remains in good standing. They also accept official mail to let you know of any changes in state requirements. Here are a few things you might want to consider to help you decide the best course of action:
Registered agent services track official notices and annual report due dates with the state for you. So, you automatically get notified when things like annual reports are due to keep your business in compliance. Another good thing is your important documents will be kept in one place so you don’t need to worry about losing them – it’s not your responsibility.
In the Operating Agreement Illinois wants you to have, you need an address for your registered agent. If this is you, you’ll likely be stating your home address as the business’ point of contact, as it needs to be a place you’ll constantly be at. This puts your home address on public record and could lead to an invasion of privacy. If you want to avoid this, a registered agent will give you their address and you can put that down instead.
Many companies, especially internet-based ones, don’t have a physical location so the need for a registered agent becomes even more dire. Then you can simply use theirs again, instead of your home address, which is safer.
Being your own registered agent means having to be always available during normal business hours to receive service of process, at a certain location. This can be difficult for you, especially if you like working different business hours or have to meet someone out of office. The only ways to solve this include being in the office all the time, having an employee do this instead or having a registered agent. Having a registered agent means you aren’t restricted to one location, and can go around freely – they will receive this for you.
Being a registered agent for yourself makes sense if you have a small company, will constantly be in office and don’t mind risking a bit of privacy. But, having a registered agent is also a great idea if you don’t mind spending some money on them. For some people, registered agents are well worth the price of not having to sort through a whole load of paperwork and reducing stress, as well as saving time. If you’re willing to spend some money, registered agents can do lots for you – even help you form your LLC. But if you would be okay on your own, being your own registered agent is also a decent way to go if you’re looking to save money.
TRUiC has abundant information on how to form an LLC in Illinois. Visit their site to learn more.