A limited liability company (LLC) is a type of business entity. It helps protect your personal assets from your business liabilities.

Forming an LLC requires fewer formal steps than a corporation. It may also be easier for you to maintain.

The first thing you will need to do to form an LLC is to complete your Articles of Organization. Then file them with the Secretary of State. Forms can be found on the Illinois Secretary of State website.  

In order to complete your Articles of Organization, you will need:

• A name for your LLC,
• A principal place of business,
• A registered agent,
• One or more members (owners), and
• The names and addresses of who will manage the LLC. 

Name

First, you will need to choose a name for your LLC.  You may not choose a name for your LLC if another LLC or corporation in Illinois is already using that name.  You may check to see if the name your would like to use for your LLC is available from the Secretary of State's website. 

Note: LLCs are not corporations. You may not use "Inc.", "Corp.", "Incorporated", or "Corporation" in the name of your LLC.

Principal place of business

Your principal place of business is the location in Illinois where your LLC will operate. 

It may be an office or your home. But be aware that your Articles of Organization are public record. This includes your principal place of business.

Your principal place of business may not be a P.O. Box.

Registered agent

The registered agent is the person (or company) who will receive legal notices on behalf of the LLC. 

The registered agent does not have to be you. The address does not have to be your home address. It may not be a P.O. Box. It must be in Illinois.

Your registered agent's name and information are public record.  

Members and managers

LLCs may be managed by their members (owners) or a manager. You must list all the people who manage the LLC on the Articles of Organization. 

Formation date and duration

You may select whether you want the LLC to be formed on the date it is approved by the Secretary of State, or at a later date. 

Unless you say otherwise in the Articles of Organization, your LLC will exist indefinitely. 

Specific rules for some businesses

Some professions are regulated by the Illinois Department of Professional and Financial Regulation (IDFPR). They may require that your Articles of Organization be more specific as to the purpose of your LLC's business.

Your LLC will be a separate entity from yourself. It will report its tax information under a separate tax number. This tax number is called your Federal Employer Identification Number, or "EIN."  You can get an EIN from the IRS.

Every LLC should have an operating agreement, even if there is only one member.  An operating agreement is a document signed by the members that details how your LLC will operate.  It should also explain how the LLC may be dissolved, or sold. This will help make sure your personal assets are protected.

Note: Operating agreements are complex. You may need professional legal help to prepare an appropriate agreement.