LIMITED LIABILITY COMPANIES
A limited liability company (LLC) is a popular form of business entity that provides flexibility for ownership, management, and taxation of the business. Unlike corporations, LLCs are non-corporate business entities with one or more owners called “Members." The individuals with authority to direct and control the business of an LLC are called “Managers." LLCs can be formed under the laws of any state. The authority to form Illinois LLCs is derived from the Illinois Limited Liability Company Act (805 ILCS 180/).
Includes:
– Articles of Organization
– EIN (Employer Identification Number)
– S-Election (if applicable)
– Operating Agreement
– Registered Agent Service (5 years)
– Expedited Service Available
LLC Formation
An LLC is created by filing Articles of Organization or a Certificate of Formation with the applicable Secretary of State. The Articles of Organization to form an Illinois LLC must include: (i) the LLC’s name; (ii) the LLC’s principal address; (iii) the name and address of the LLC’s registered agent; (iv) a statement as to whether the existence of the Company is perpetual or designated to end on a specific date; (v) the name and address of the managers and members having managerial authority; and (vi) name and address of the LLC’s organizers.
The Articles of Organization may also contain additional provisions about the governance and management of the LLC; however, most of that information is typically contained in the LLC’s operating agreement (which is a confidential document), and not in the Articles of Organization (which is a public record).
Linnemeyer Law offers flat-fee arrangements for formation of limited liability companies. These flat fees include the services listed below:
- Initial Consultation
- Name Availability Search
- Prepare and File Articles of Organization
- Obtain EIN (Employer Identification Number) from the IRS
- Prepare Initial Member and Manager Resolutions
- Prepare Multi-Member or Single-Member Operating Agreement
These flat fees start at $500.00 and increase based on the number of members and the complexity of the business structure.
An attorney experienced with LLCs can help you plan how to meet the various organizational and ownership requirements, prepare Articles of Organization and an Operating Agreement, and provide general advice for making your LLC venture a safe and productive enterprise.
Please submit Linnemeyer Law’s LLC Formation Intake Form and an attorney will contact you with a quote for the formation of your LLC.
FREQUENTLY ASKED QUESTIONS:
How long does it take to form an LLC?
After the Articles of Organization are submitted to the Secretary of State, a non-expedited service request will receive a response within 10 days of the submission. Expedited service requests are available for an additional cost and receive responses within 24 hours, excluding weekends and holidays.
Does an LLC need an Operating Agreement?
An Operating Agreement is not required, but it is recommended. It is crucial for multi-member LLCs to have an Operating Agreement to establish the relative ownership and management rights of the members. It is recommended that single-member LLCs have an Operating Agreement for banking purposes and to serve as documentary evidence that the LLC is being operated separately from the individual owner.
What are the filing fees associated with forming a LLC?
The filing fee paid to the Illinois Secretary of State to file the Articles of Organization to form an LLC is $150.00. There is an additional fee of $100.00 for expedited filing service. Please contact Linnemeyer Law, LLC for more information on filing fees for your LLC.
What is the tax classification of an LLC?
A LLC can be taxed as a disregarded entity, a partnership, an S-Corporation or a C-Corporation. By default, a single-member LLC will be taxed as a disregarded entity for federal and state tax purposes. As a result of being “disregarded," the LLC does not file a separate tax return. Rather, its income and loss are reported on the tax return filed by the single member. A LLC with multiple members is taxed as a partnership. A LLC taxed as a partnership must file an IRS Form 1065 partnership tax return. Additionally, the LLC must also give each member a Schedule k-1, showing each member’s share of partnership income, credits and deductions. Since a LLC is a flow-through entity, each member then reports his or her share of income, credits and deductions on their individual 1040 and Schedule E. A single-member LLC or a multiple-member LLC may elect to be taxed as an S-Corporation (if it meets certain requirements) or a C-Corporation. This is accomplished by filing an election (form 2553 or 8832) with the IRS. The legal status of a LLC is not changed by filing an election to be taxed as a Corporation, it continues to function as a LLC for all other purposes. A LLC that elects to be taxed as an S-Corporation must file an IRS Form 1120S tax return and a LLC that elects to be taxed as a C-Corporation must file an IRS Form 1120 tax return.
Submit Linnemeyer Law’s LLC Formation Intake Form and an attorney will contact you with a quote for the formation of your LLC.