Best LLC Formation Services in Illinois | Comparative Review 2023


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Best Illinois LLC Formation Services

Best LLC formation services in Illinois: If you would like to start an LLC in Illinois, also known as The Prairie State, there are a few steps to follow. In general, you can set up your LLC in two ways: either you can do it yourself or take help from professionals. Illinois is a business-friendly state and has immense opportunities for start-ups. However, setting up an LLC in Illinois can be stressful for beginners. Hence, hiring a professional LLC formation service is better than doing it on your own.

In Illinois, you will find several LLC formation services that offer great deals. Some offer free service, some offer a business website and logo with the LLC package, and some offer something else. This is incredibly attractive; however, based on your company’s requirements, you must choose the best option for you!

To help you navigate setting up an LLC, Webinarcare Editorial Team has compiled a list of the best Illinois LLC formation services. These companies can help you handle the paperwork and legal requirements, so you can focus on growing your business.

Starting an LLC is attractive for many entrepreneurs looking to establish a new business. Limited Liability Companies (LLCs) offer numerous advantages for entrepreneurs and small business owners, including liability protection, flexibility in management, and favorable tax treatment. As a result, many entrepreneurs are choosing to form their LLCs in Illinois. 

The Best Illinois LLC Formation Services

In this section, we will describe the operating procedures of the best LLC Formation Services available in Illinois along with several other relevant information. We will also discuss these companies’ costs, pros, and cons so you to understand better and choose the right LLC formation services you want in Illinois.

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#1 Recommendation

$0 + State fee

  • Free LLC Formation

  • Legal Support

  • Highly Reputed Company

$299 + State fee

  • Single LLC formation package

  • Flat price for all services

  • Legal consultation

Webinarcare Editorial Team has come up with some extraordinary LLC formation services. This is a general list based on our experience. You can compare their services and pricing before you hire them to form your business.

Following are the 5 best LLC formation services in Illinois:

Now, let’s dive into the list of best LLC formation services in Illinois.

1. LegalZoom

legalzoom

LegalZoom is a well-established name in the business formation industry, offering a range of legal services beyond Illinois LLC formation. Their experience and reputation make them a reliable choice for entrepreneurs.

Plans and Pricing

LegalZoom’s pricing for LLC formation starts at $0 plus state fees for the Basic Package, which includes a name check, filing formation documents, and access to an online document library. The Pro Package ($249 plus state fees) adds a personalized operating agreement, while the Premium Package ($279 plus state fees) includes expedited processing and priority shipping.

Add-on Services by LegalZoom

  • Registered Agent
  • Trademark registration
  • Copyright registration
  • Patent services
  • Estate planning
  • Legal advice
  • Expedited Filing

Registered Agent Service is not included in any packages. It is available as an add-on at $299 per year! LegalZoom is the best option if you have a requirement of only registered agent service, not the entire formation package.

Pros πŸ‘Cons πŸ‘Ž
A well-known and reputable companyMore expensive than some competitors
A wide range of legal services beyond LLC formationSome customer reviews mention slow turnaround times.
Lifetime customer support

2. BetterLegal

betterlegal

BetterLegal provides an efficient and user-friendly platform for entrepreneurs to establish legal entities such as LLCs (Limited Liability Companies) and corporations. The platform streamlines forming a business entity, making it easier and more accessible for individuals without legal expertise.

Plans and Pricing

BetterLegal offers a straightforward pricing structure for its services. The company offers $299 + state fees price for a formation package. You must pay $50 to get the service if you want to obtain the EIN. Besides, BetterLegal is a legal firm that provides legal support and consultation.

Other Services and Add-ons By BetterLegal

  • Registered Agent service – $10/month or $90/year
  • State Annual compliance services – $10/month or $90/year
  • Permit & License Search Service – $125
  • Amendment & document research – $0

Amendment and document research come with BetterLegal’s core formation package. It is free. On the other hand, this service is available as a standalone service. You must purchase the core formation package if you need amendment and document research.

Pros πŸ‘Cons πŸ‘Ž
User-Friendly PlatformLimited Legal Advice
Time and Cost SavingsState-Specific Services
Transparent PricingLack of Customization

3. ZenBusiness

zenbusiness

ZenBusiness is an affordable and user-friendly option for forming an LLC. With its straightforward pricing and comprehensive services, ZenBusiness has quickly become one of the most popular choices for entrepreneurs looking to form an LLC.

Plans and PricingΒ 

ZenBusiness offers three different pricing plans, starting at $0 plus state fees for their basic package, which includes a registered agent service, an operating agreement, and a worry-free guarantee. Their Pro package ($199 plus state fees) adds an Employer Identification Number (EIN), banking resolution, and expedited filing. The Premium package ($299 plus state fees) includes all Pro features, a business website, a domain name, and an email address.

Add-on Services By ZenBusiness

  • Tax and Accounting
  • Compliance Services
  • Annual Reports
  • Business License Reports
  • Business Website
  • Banking & Finances

ZenBusiness provides a standalone registered agent service. If you do not need the entire formation package, you can only purchase their registered agent service at $99 per year.

Pros πŸ‘Cons πŸ‘Ž
Affordable pricing and clear, transparent plansThe basic package does not include an EIN
Excellent customer service and supportNo Illinois nonprofit formation
Fast turnaround times for LLC formation
Positive customer reviews

4. Incfile

incfile

Incfile is another popular choice for entrepreneurs forming an LLC. They offer various services, from basic formation packages to more comprehensive plans with additional features. Incfile is one of those services that started LLC formation services at $0.

Plans and Pricing

Incfile’s pricing starts at $0 plus state fees for their basic Silver package, which includes a registered agent service, company alerts, and online access to incorporation documents. The Gold package ($149 plus state fees) includes an EIN, operating agreement, and banking resolution. In contrast, the Platinum package ($299 plus state fees) adds a business website and domain, expedited filing, and customizable legal forms.

Add-on and Other Services By Incfile

  • Registered Agent: $119 after a year (one year free)
  • Employer Identification Number: $70
  • Operating agreement: $40
  • Certificate of Good Standing: $49 + State Filing Fees
  • File corporation annual report: $88 + State Filing Fees
  • Doing Business As (DBA): $99 + State Filing Fees
  • Trademark Registration: $199 + Federal Filing Fees
  • Business License Search: $99
  • Dissolution: $149 + State Filing Fees
  • S-Corp Tax  Election: $50 for current LLC & $25 for current C-Corps

Registered agent service at Incfile is available at $119 per year. However, you can enjoy it for free for one year if you take their formation package.

Pros πŸ‘Cons πŸ‘Ž
Competitive pricing, with a free basic package availableSome additional features, such as a business website, are only available in the most expensive package.
A comprehensive range of services and featuresAdditional cost to obtain EIN
It comes with a registered agent service, even in the basic package
Good customer support

5. Northwest Registered Agent

northwest registered agent

Northwest Registered Agent is known for its personalized customer service and commitment to privacy. They offer a simple and straightforward approach to Illinois LLC formation, focusing on the essentials.

Plan and Pricing

Northwest Registered Agent charges a flat fee of $225 plus state fees for their Illinois LLC formation service, which includes a registered agent service, filing formation document, and an operating agreement draft.

Add-ons and Other Services By Northwest Registered Agent

  • Registered Agent at $125 yearly
  • Annual report filing at $100 + state filing fee
  • Obtaining EIN at $50
  • Northwest offers National Agent Service. If you operate your LLC Registered Agent in 5 or more states, you can pay $100 + state fees (if applicable) to get a single agent for all states.

With Northwest Registered Agent, you can enjoy the standalone Registered Agent service. If you don’t want the full formation package, you can purchase the only registered agent service for $125 per year.

Pros πŸ‘Cons πŸ‘Ž
Flat fee pricing with no upsells or hidden costs.No tiered pricing or additional features are available.
Excellent customer service and personalized supportMore expensive than some competitors
Focus on privacy and security.

Webinarcare Editorial Team selects these LLC Formation Services through thorough research and market study. You must cross-check all the factors before choosing the right one for your Illinois business.

What is an LLC?

An LLC, or Limited Liability Company, is a legal business structure that combines the benefits of both corporations and partnerships. It offers limited liability protection to its owners, known as members, and provides flexibility in management and taxation. LLCs in Illinois are popular among Illinois business owners and entrepreneurs because they are relatively easy to set up and maintain compared to other business structures.

Key features of an LLC include:

  • Limited Liability Protection: Members of Illinois LLC are not personally liable for the company’s debts or liabilities. This means that their personal assets, such as homes and savings, are protected from creditors and lawsuits related to the business.
  • Flexible Management: Unlike Illinois Corporations, which require a Three board of directors and officers, LLCs can be managed by the members themselves or by appointed managers. This allows for more flexibility in how the company is run and makes it easier for small business owners to maintain control over their operations.
  • Pass-through Taxation: By default, Illinois LLCs are not taxed as separate entities. Instead, their profits and losses pass through to the owners, who report them on their personal income tax returns. This avoids the double taxation that affects corporations, which pay taxes on their profits, and then shareholders pay taxes on dividends. However, LLCs can also be taxed as corporations if it’s more advantageous for their specific situation.
  • Easy Formation and Compliance: Forming an LLC typically requires filing Illinois Articles of Organization with the Illinois and paying a filing fee of $15. While some ongoing compliance requirements may apply, such as submitting Illinois Annual Reports or maintaining a Registered Agent, LLCs generally have fewer regulations and restrictions than corporations.

An LLC offers a flexible and relatively simple way for entrepreneurs and small business owners to establish a legal business structure while providing limited liability protection and potential tax advantages.

How to Choose the Best LLC Formation Services

Choosing the best LLC formation service Illinois depends on several factors, such as pricing, features, customer support, and overall reputation. To make an informed decision, consider the following steps:

  • Determine your needs: Identify your specific requirements before comparing Illinois LLC formation services. Do you need help filing the necessary paperwork or require additional services like Obtaining an EIN, drafting an operating agreement, or having a registered agent service?
  • Research and compare options: Compile a list of potential LLC formation services available in Illinois. Research each company’s reputation, customer reviews, and track record. Look for services with a history of satisfied clients, quick turnaround times, and a strong reputation for providing accurate and reliable support.
  • Compare pricing and packages: Analyze the pricing and packages offered by each service. Some companies offer tiered pricing, while others charge a flat fee for their services. Consider the features included in each package and determine which one offers the best value for your needs. Remember that the cheapest option may only sometimes be the best choice, as it could lack essential features or support.
  • Evaluate customer support: Customer support is crucial when dealing with legal and regulatory matters. Make sure the Illinois LLC formation service you choose offers responsive and knowledgeable support through various phone, email, or live chat channels. It would be best if you also verified their availability during your preferred hours of operation.
  • Consider additional services: Some LLC formation services offer a range of additional features, such as ongoing compliance assistance, legal advice, or business document templates. If you anticipate needing these services, choosing a provider that can fulfill all your business requirements in one place may be beneficial.
  • Read customer reviews and testimonials: Lastly, read customer reviews and testimonials to gain insights into each company’s performance and client satisfaction. Look for consistent patterns in feedback, such as responsiveness, accuracy, and professionalism. Remember that occasional negative reviews are inevitable, but a company with overwhelmingly positive feedback will likely provide a reliable and satisfactory experience.

By carefully considering your needs, comparing options, and evaluating customer support and additional services, you can choose the best LLC formation service in Illinois that meets your requirements and helps you start your business on a strong foundation. 

Importance of Professional LLC Formation Services

Professional LLC formation companies play a crucial role in helping entrepreneurs and small business owners establish their businesses by simplifying the process of forming a Limited Liability Company (LLC). These services offer a range of benefits, including saving time and effort, ensuring compliance with legal requirements, and providing ongoing support. Here are some key reasons why utilizing professional LLC formation companies is important:

Expertise and experience

Professional LLC formation companies possess the knowledge and experience to navigate the complex process of forming an LLC. They understand the legal requirements, regulations, and documentation needed to establish a compliant LLC in your state. This expertise can help you avoid costly errors, omissions, or delays in the formation process.

The LLC formation services should know about filing an LLC, Articles of Organization, or Articles of Incorporation in Illinois Secretary of State.

Time and Effort Savings

Forming an LLC can be time-consuming, especially for first-time entrepreneurs needing to become more familiar with the process. By enlisting the help of a professional LLC formation company, you can save time and effort, allowing you to focus on other aspects of starting and growing your business.

Compliance Assurance

One of the primary benefits of using  Illinois professional LLC formation service is ensuring that your LLC complies with state laws and regulations. This includes accurately preparing and filing the necessary paperwork with a Registered Agent, obtaining required Illinois Business Licenses and permits, and maintaining ongoing compliance through Illinois Annual Reports and other filings.

Registered Agent Services

Illinois require LLCs to have a Registered Agent, who is responsible for receiving legal and government correspondence on behalf of the company. Many professional LLC formation companies offer Illinois Registered Agent Services, which can be a convenient and cost-effective solution for maintaining this requirement.

Customized Operating Agreements

A well-drafted Illinois Operating Agreement defines your LLC’s structure, management, and ownership. Professional LLC formation services often provide customized operating agreements tailored to your business needs, ensuring your Illinois LLC is set up correctly.

Ongoing Support and Resources

Many professional LLC formation companies offer ongoing support and resources for business owners, including assistance with compliance, legal advice, and access to business document templates. This can be invaluable in helping you manage and grow your business.

Peace of Mind

Illinois LLC formation services provide peace of mind, knowing your business is set up correctly and compliantly. This allows you to focus on your core business objectives with the confidence that experts are handling your LLC’s legal and regulatory requirements.

Can an LLC Formation Services Help Me File My Taxes?

Each LLC formation specialist provides tax advice to help you avoid state tax penalties easily. You can even file your taxes on time, so your business won’t be charged a fee. The LLC formation company or your hired Registered Agent can file for your taxes in Illinois Department of Revenue. 

Do I Need Illinois LLC Formation Services?

You can do everything an LLC service can without paying the service fees. Business owners who don’t want to file independently can benefit from LLC services, which can also give them access to other legal services from experienced lawyers. Your Illinois LLC can also be created for you by a local business lawyer. Illinois Business Attorney can be a good option if you prefer a personal relationship with someone who can assist you with various legal questions and issues, even though this may cost more than an online service.

FAQs

What is an LLC?
LLC stands for Limited Liability Company. It is a type of business entity that provides limited liability protection to its owners while also allowing for flexibility in management and taxation.
Why should I form an LLC in Illinois?
Illinois offers many benefits to LLC owners, including low startup costs, an easy filing process, and favorable tax laws. Additionally, Illinois has a strong and diverse economy, making it an attractive location for businesses.
What are the steps to form an LLC in Illinois?
To form an LLC in Illinois, you must file the necessary paperwork with the Secretary of State’s office, obtain any necessary business licenses and permits, and create an operating agreement.
How much does it cost to form an LLC in Illinois?
The filing fee for a new LLC in Illinois is $150. Additional costs may include obtaining a business license and hiring an attorney to create an operating agreement.
Can I form an LLC on my own, or do I need an attorney?
While it is possible to form an LLC on your own, it is usually recommended to hire an attorney to ensure that everything is done correctly and that you are fully protected from legal liability.
How long does it typically take to form an LLC in Illinois?
The processing time for LLC filings can vary depending on the workload at the Secretary of State’s office. Generally, expect a processing time of 2-3 weeks.
What is an operating agreement and why do I need one?
An operating agreement is a legal document that outlines how your LLC will be operated and managed. It is not required by Illinois law, but it is highly recommended to have one in place to avoid conflicts among members and to protect your personal assets.
Can non-residents of Illinois form an LLC in the state?
Yes, non-residents can form an LLC in Illinois. However, it is important to note that there may be additional filing requirements for out-of-state businesses.
Can I change the name of my LLC after it is formed?
Yes, you can change the name of your LLC after it is formed by filing a name change amendment with the Illinois Secretary of State’s office.
How can I check if my desired LLC name is available in Illinois?
You can easily check the availability of your desired LLC name by searching the Secretary of State’s online business entity database.
Does Illinois require a registered agent for LLCs?
Yes, Illinois requires all LLCs to have a registered agent to accept legal documents and service of process.
Can I serve as my own registered agent for my Illinois LLC?
Yes, you can serve as your own registered agent for your Illinois LLC. However, many business owners prefer to hire a professional registered agent service to ensure that they do not miss any important legal notices.
Do I need an EIN for my Illinois LLC?
Yes, you will need an Employer Identification Number (EIN) from the IRS if you have employees or if your LLC is taxed as a corporation or partnership.
How can I obtain an EIN for my Illinois LLC?
You can obtain an EIN for your Illinois LLC by filing an online application with the IRS.
Can my LLC be taxed as an S corporation in Illinois?
Yes, if your LLC meets certain requirements, it can elect to be taxed as an S corporation in Illinois. This can potentially result in lower taxes for your business.
Is it required by law to file an annual report for my Illinois LLC?
Yes, Illinois LLCs are required to file an annual report with the Secretary of State’s office each year to keep their business in good standing.
Is there a penalty for filing my Illinois LLC’s annual report late?
Yes, if an annual report is filed late, there is a $300 penalty that must be paid before the report will be accepted.
Can I change my Illinois LLC’s registered agent?
Yes, you can change your LLC’s registered agent at any time by filing a Statement of Change of Registered Agent with the Secretary of State’s office.
Can I dissolve my Illinois LLC at any time?
Yes, an LLC can be dissolved at any time by filing Articles of Dissolution with the Illinois Secretary of State. This will formally end the LLC’s existence.
What happens if I do not renew my Illinois LLC’s annual report?
If an LLC fails to file its annual report, it may be administratively dissolved by the Secretary of State’s office.
Can I reinstate my administratively dissolved Illinois LLC?
Yes, you can reinstate an administratively dissolved LLC by filing the necessary paperwork with the Secretary of State’s office and paying any required fees.
Can I own multiple LLCs in Illinois?
Yes, there is no limit to how many LLCs an individual can own in Illinois.
Can my LLC operate under a different name than the one it was formed under?
Yes, an LLC can operate under a “doing business as” (DBA) name as long as it is properly registered with the Illinois Secretary of State.
Can I convert my Illinois LLC to a corporation?
Yes, an LLC can be converted to a corporation in Illinois with the proper paperwork and filing with the Secretary of State’s office.
Can I convert my Corporation to an Illinois LLC?
Yes, a corporation can be converted to an LLC in Illinois with the proper paperwork and filing with the Secretary of State’s office.
Can I register an out-of-state LLC to do business in Illinois?
Yes, an out-of-state LLC can register to do business in Illinois by filing a foreign LLC registration with the Secretary of State’s office.
Does Illinois require annual meetings for LLCs?
While Illinois law does not explicitly require LLCs to hold annual meetings, it is a good practice to do so to stay organized and up-to-date on important business matters.
Can an LLC be owned by another LLC in Illinois?
Yes, an LLC can be owned by another LLC in Illinois.
What are the best LLC formation services in Illinois?
Some of the best LLC formation services in Illinois include Incfile, ZenBusiness, and LegalZoom.
What is the cost of forming an LLC in Illinois?
The cost of forming an LLC in Illinois depends on the chosen formation service or the state itself. The fees range from $49 to $500.
How long does it take to form an LLC in Illinois?
It takes an average of 1 to 2 weeks to form an LLC in Illinois. The duration depends on the formation service and state processing speed.
Can non-residents form an LLC in Illinois?
Yes, non-residents can form an LLC in Illinois. Any person, regardless of residency status, can register a business in this state.
What are the benefits of forming an LLC in Illinois?
Forming an LLC in Illinois offers limited liability protection to members, potential tax benefits, flexibility in management structure and sharing of profits.
What documents are required to form an LLC in Illinois?
Some of the required documents to form an LLC in Illinois include Articles of Organization, LLC Operating Agreement, and IRS Form SS-4 and more.
What is the Illinois LLC Operating agreement?
The LLC Operating Agreement outlines the management and ownership of the company. It is not required by the stat but highly recommended for corporate governance.
Can I form a single-member LLC in Illinois?
Yes, you can form a single-member LLC in Illinois.
Who can I list as a registered agent for my Illinois LLC?
Any resident of Illinois can be named as your business’ registered agent, but it is generally recommended to use a professional registered agent service for reliability and privacy.
Is it necessary to obtain specialized permits for an LLC in Illinois?
Some businesses may require additional industry-specific permits and licenses even after the formation of an LLC in Illinois, but not necessarily.
What tax obligations does an Illinois LLC have?
LLCs in Illinois may be subject to a range of state-specific taxes like state income, sales, and excise taxes but no franchise taxes.
Can I dissolve my Illinois LLC if it is having financial trouble?
Yes, LLCs can voluntarily dissolve in Illinois in the event that they are no longer economically viable or the owners move on.
Is there any annual reporting requirement for my Illinois LLCs?
Illinois LLCs typically need to file annual reports, accompanied by fees, to maintain their valid status with the state, usually in the year following formation.
Do you need EIN for an Illinois LLC?
Yes, It is necessary to obtain an employer identification number for most LLCs in Illinois, and in most states, as well as periodically, file necessary tax accounting paperwork.
What are the legal forms of Illinois LLC?
The legal forms available for forming an LLC inIllinois is under two categories; domestic LLCs and foreign LLCs.
Is it possible to change the name of my Illinois LLC at a later date?
Yes, LLC amendments can be filed to change the name, address, or registered agent details of your LLC.
Are there annual reporting & compliance fees for Illinois LLCs?
Illinois LLCs are obliged to pay annual report fees of $75 for a flat fee filing regardless of data changes and updates.
Can I use a PO Box as my Illinois LLC registered agent address?
No, you need to identify and utilize an authorized agent with a physical street location in Illinois.
Who may assist me in filing my Illinois LLC formation?
Legally savvy attorneys or online legal service providers, like ZenBusiness can assist in filing your desired formation documents.
What disclosure requirements do I have if I am an Illinois LLC?
Illinois LLCsl to disclose the list of managers or members and company contact details upon request.
Is my business required to register for state taxes in Illinois?
It’s mandatory for any Illinois or employees due to income and unemployment tax laws.
How can I change the management structure of my Illinois LLC?
LLC management changes can initiate changes to the Operating Agreement to modify the existing management structure in compliance with the relevant IL rules.
Do LLCs require accounting services?
Yes, accounting services are integral in monitoring and understanding financials and balancing tax schedules with legal filings compliance in Illinois.
What happens in case of a lawsuit or bankruptcy declared in Illinois LLCs?
The LLC can insure against claims made against the business, and bankruptcy can be appropriately navigate through established legal or bank mandate procedure.
What is the lifetime of the Illinois LLC?
The LLC formation documentation lacks a strict termination date by demanding periodic filings to continue to legally operate.
What is the ILLLC dissolution statute of LLCS maintenance rules after adding them to the IL business registry?
Dissolution is a legal process and must be followed after standard procedures and if the members vote and opted to dissolve or failed to file their annual reports for 2 years consecutively.
What will happen if I do not dissolve the Illinois LLC upon the indicated termination date?
Any Illinois LLC devoid of renewal or annual reports conducted will be under dire peril of losing their associated authority or granting operations.

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Conclusion

Choosing the right Illinois LLC formation service for your needs depends on your budget, your support level, and any additional features you may need. ZenBusiness and Incfile are excellent choices for affordable yet comprehensive LLC formation services, while LegalZoom and Rocket Lawyer may be more suitable for entrepreneurs who require ongoing legal support. Northwest Registered Agent is a great option for those prioritizing privacy and personalized customer service.

Regardless of which LLC formation service you choose for your Illinois LLC, it is essential to research and compares your options thoroughly to ensure you receive the best possible support and value for your money. By doing so, you can focus on growing your business with the confidence that your legal and regulatory requirements are in good hands.

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