Articles of Organization in Illinois | How to File in 2023

Last Updated on by | Proofread & Edited by Editorial Staff.
File Articles of Organization in Illinois

Forming a Limited Liability Company (LLC) is popular for entrepreneurs looking to start or grow their businesses. LLCs offer numerous benefits, including limited liability protection for their owners and flexible management structures. One of the critical steps in forming an LLC is registering the Articles of Organization with the Illinois state agency. This article will provide a comprehensive guide on How to File Articles of Organization in Illinois.

Webinarcare Editorial Team will help you guide and understand the necessary steps to file for Articles of Organization. You must be guided by all the factors gathered in this article.

What is Articles of Organization?

Articles of Organization is a legal document filed with the Illinois Secretary of State to establish a Limited Liability Company (LLC) officially. The Articles of Organization contains essential information about the LLC, including its name, Registered Agent, and management structure. Once filed and approved by Illinois, the LLC becomes a legally recognized business entity, separate from its owners, and benefits from limited liability protection and pass-through taxation.

How to File Articles of Organization

Aside from hiring a Registered Agent, you should also be aware that a Registered Agent should file Articles of Organization in your Illinois LLC. Here are the steps and guidelines for filing. 

Step 1: Choose a Name for Your LLC

The first step in registering an LLC Articles of Organization is selecting a unique and appropriate name for your company. Your LLC’s name must comply with your state’s naming requirements, which typically include the following:

  • The name must be distinguishable from other registered business names in the state.
  • The name must include an LLC designator, such as “Limited Liability Company,” “LLC,” or “L.L.C.”
  • The name must not include prohibited words or phrases defined by your state’s regulations.

To ensure your chosen name is available through your state’s business name database, Illinois Secretary of State Corporation/LLC Search, usually available on the Illinois Secretary of State’s website.

Step 2: Appoint a Registered Agent

Registered Agent is a person or entity responsible for receiving official correspondence and legal documents on behalf of your Illinois LLC. Most states require LLCs to designate a Registered Agent when filing the Articles of Organization. The Registered Agent must have a physical address in the state and be available during regular business hours.

It’s essential to choose a reliable and responsible Illinois Registered Agent, as failure to receive and respond to legal documents can have serious consequences for your business. 

You can serve as your own Registered Agent or appoint a friend, family member, or professional Illinois Registered Agent Services.

Step 3: Prepare Your Articles of Organization

The Articles of Organization is the legal document that officially establishes your Illinois LLC. While the specific requirements in Illinois, the document  includes the following information:

  • The LLC’s name
  • The name and address of the registered agent
  • The principal office address
  • The purpose of the LLC
  • The management structure (member-managed or manager-managed)
  • The names and addresses of the initial members or managers
  • The duration of the LLC, if not perpetual

In Illinois, additional information may be required, such as an organizer’s signature or specific provisions related to the LLC’s operation. 

Consult the Illinois guidelines to ensure you include all necessary information.

Step 4: File the Articles of Organization

Once your LLC Articles of Organization is prepared, please submit it to the Illinois Secretary of State. The submission process may vary depending on the method of choice; Illinois allow online submissions and mailing or hand-delivering the documents.

Online Process

To use the online service or download the Articles of Organization form for your LLC, go to the website of the Illinois Secretary of State. You were required to have an LLC name reserved while completing the form. Visit the state’s Illinois Business Name Search to see if the business name you want to use is available there. When submitting, you must include a copy of your name reservation and your completed Articles of Organization form.

Mail Process

It is also possible to mail the form if you wish. Please adhere to the guidelines listed below.

  • The Articles of Organization must be downloaded in the Illinois Secretary of State
  • Complete the necessary details in the form 
  • Two copies of the Articles of Organization must be completed.
  • Include the two papers with the Illinois LLC name reservation certificate in a self-addressed, stamped envelope.
  • Submit all paperwork to Department of Business Services, Limited Liability Division, 501 S. Second St., Rm. 351, Springfield, IL 62746.

Costs of Filing Articles of Organization

Along with the filing of Articles of Organization, you must pay a filing fee. In Illinois, the Articles of Organization fee costs around $150 which you can pay in the Illinois Secretary of State. Confirm the correct fee amount and payment method for your state.

However, If you want to know more about the cost of forming an LLC, you can check out Illinois LLC Cost.

Step 5: Obtain an Employer Identification Number (EIN)

After your LLC Articles of Organization has been filed and approved, you should obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). The EIN is a unique identification number used for federal tax purposes. It is required for most LLCs, especially those with employees or elect to be taxed as an S-Corporation. You can apply for an EIN for free online through the IRS website.

The application of an EIN in Illinois can be through the following:

  • Apply Online- The online EIN application is the preferred method for customers to apply for and obtain an EIN.
  • Apply by Fax- Taxpayers can fax the completed Form SS-4 application to the appropriate fax number), after ensuring that the Form SS-4 contains all of the required information.
  • Apply by Mail- The EIN application Form SS-4 can be filed via mail. The processing time frame to receive the mail is four weeks.
  • Apply by Telephone-International Applicants – International applicants may call 267-941-1099 (not a toll-free number) from 6 a.m. to 11 p.m. (Eastern Time) Monday through Friday to obtain their EIN.

Step 6: Create an Operating Agreement

Although most states do not require an LLC Operating Agreement when registering an LLC, having one is highly recommended. The Operating Agreement in Illinois is a legally binding document that outlines the LLC’s ownership structure, management, and operating procedures. It helps prevent member disputes and provides a clear framework for the LLC’s operations.

Step 7: Register for State and Local Taxes and Licenses

In Illinois, you may need to register for additional state and local taxes or obtain specific licenses and permits. Common registrations include sales tax, payroll tax, and unemployment insurance tax.  As an LLC, your business income will be subject to pass-through taxation, meaning profits and losses will be reported on your personal tax return. However, you may still be responsible for other state taxes, such as sales tax, payroll tax, or franchise tax which you can pay in Illinois Department of Revenue.

In terms of franchise tax for your LLC in Illinois, there is No franchise tax. Consult your Illinois Department of Revenue and local government offices to determine which registrations and licenses apply to your LLC.

Step 8: Maintain Ongoing Compliance

Once your LLC is registered and operational, it’s essential to maintain ongoing compliance with state regulations. This typically includes filing Annual Reports, paying required fees which cost 1 year (before the anniversary month starts), and keeping accurate records of your LLC’s activities. Stay informed about Illinois specific requirements to ensure your LLC remains in good standing.

Is the Articles of Organization necessary to be filed in Illinois?

Yes, the Articles of Organization is necessary to be filed with Illinois Secretary of State to legally establish and register a new business entity, such as a corporation or limited liability company (LLC). This document typically includes the company’s name, purpose, Registered Agent, and stock structure. Filing the Articles of Organization is essential in forming a business and ensuring it operates legally and is recognized by Illinois.

What is the best way to file Articles of Organization? Is it online or by mail?

The best way to file Articles of Organization depends on your specific situation and the state in which you are incorporating your business. Both online and mail-in options have advantages, and either method can be effective.

Online Filing:

  • Faster processing time, as it is usually processed within a few days or even hours.
  • Immediate confirmation of submission and payment.
  • Lower risk of errors, as the online form may provide guidance and prevent incomplete submissions.

Mail-in Filing:

  • Some people prefer the traditional method and feel more comfortable with paper documentation.
  • You can include a cover letter or additional documentation if you have specific questions or complex situations.

To determine the best method for your needs, check the Illinois Secretary of State or similar department’s website for information on their preferred filing options and processing times. Online filing is more convenient and efficient, but both methods can be used effectively to submit your Articles of Organization.

FAQs

What are the filing fees for LLC Articles of Organization in Illinois?
The filing fees for LLC Articles of Organization in Illinois are $150.
Can I file LLC Articles of Organization online in Illinois?
Yes, LLC Articles of Organization can be filed online in Illinois.
How long does it take to process LLC Articles of Organization in Illinois?
It can take up to 5-7 business days to process LLC Articles of Organization in Illinois.
Does Illinois require a registered agent for an LLC?
Yes, Illinois requires a registered agent for an LLC.
Can an individual be a registered agent for an LLC in Illinois?
Yes, an individual can be a registered agent for an LLC in Illinois.
Do I need a lawyer to file LLC Articles of Organization in Illinois?
No, you don’t need a lawyer to file LLC Articles of Organization in Illinois.
Can I file LLC Articles of Organization by mail in Illinois?
Yes, you can file LLC Articles of Organization by mail in Illinois.
Can I change the name of my LLC after filing Articles of Organization in Illinois?
Yes, you can change the name of your LLC after filing Articles of Organization in Illinois.
How do I check the status of my LLC Articles of Organization filing in Illinois?
You can check the status of your LLC Articles of Organization filing in Illinois on the Secretary of State website.
Do I need to publish my LLC Articles of Organization in a newspaper in Illinois?
No, you don’t need to publish your LLC Articles of Organization in a newspaper in Illinois.
What is the minimum number of members required to form an LLC in Illinois?
There is no minimum number of members required to form an LLC in Illinois.
How do I dissolve my LLC in Illinois?
You can dissolve your LLC in Illinois by filing Articles of Dissolution with the Secretary of State.
What is the biennial report that an LLC is required to file in Illinois?
A biennial report is a report that LLCs are required to file every two years with the Illinois Secretary of State.
What is a franchise tax in Illinois?
A franchise tax is a tax that Illinois LLCs are required to pay to the state.
Can I file expedited LLC Articles of Organization in Illinois?
Yes, expedited LLC Articles of Organization can be filed in Illinois for an additional fee.
What is the statute that governs Illinois LLCs?
The Illinois Limited Liability Company Act governs Illinois LLCs.
Can I form a single-member LLC in Illinois?
Yes, you can form a single-member LLC in Illinois.
Are LLC records public in Illinois?
Yes, LLC records are public in Illinois.
Can I amend my LLC Articles of Organization in Illinois?
Yes, you can amend your LLC Articles of Organization in Illinois.
Do I need an EIN for my Illinois LLC?
Yes, you need an EIN for your Illinois LLC if you have employees or multiple members.
Can my LLC have a different name than my registered agent in Illinois?
Yes, your LLC can have a different name than your registered agent in Illinois.
What is a domestic LLC in Illinois?
A domestic LLC in Illinois is one that is formed within the state.
Can I reserve a name for my LLC before filing Articles of Organization in Illinois?
Yes, you can reserve a name for your LLC before filing Articles of Organization in Illinois.
How do I register my out-of-state LLC in Illinois?
You can register your out-of-state LLC in Illinois by filing an Application for Admission to Transact Business.
What is a foreign LLC in Illinois?
A foreign LLC in Illinois is an LLC that is formed in another state or country and registered to do business in Illinois.
What is the purpose of an operating agreement for an LLC in Illinois?
The purpose of an operating agreement for an LLC in Illinois is to set out the rights and responsibilities of the members.
Can two LLCs have the same name in Illinois?
No, two LLCs cannot have the same name in Illinois.
Are annual meetings required for LLCs in Illinois?
No, annual meetings are not required for LLCs in Illinois.
What are Articles of Organization and why do I need to file them in Illinois?
Articles of Organization are legal documents required by the Illinois Limited Liability Company Act and must be filed with the Illinois Secretary of State to form your LLC.
How many members do I need to form an LLC in Illinois?
You only need one member to form an LLC in Illinois.
How do I choose a name for my Illinois LLC?
Your chosen name must be unique, distinguishable, and available for use in Illinois. You can search the Illinois Secretary of State website to ensure your name is available before filing.
Can I file my LLC Articles of Organization online in Illinois?
Yes, you can file your Articles of Organization online through the Illinois Secretary of State website.
How much does it cost to file LLC Articles of Organization in Illinois?
The fee to file your LLC Articles of Organization in Illinois is currently $150.
Do I need an Illinois address to form an LLC in Illinois?
Yes, you need to provide a physical street address in Illinois as your registered office address.
Can I use a PO box as my Illinois registered office address?
No, a PO box is not acceptable as your Illinois registered office address.
Can I change my Illinois LLC name after filing?
Yes, you can change your Illinois LLC name after filing by submitting an amendment to the Secretary of State.
How long does it take for my LLC to be approved in Illinois?
Approval times vary, but the Illinois Secretary of State usually processes your LLC filing within 10-15 business days.
Can I reserve an Illinois LLC name before filing?
Yes, you can reserve an Illinois LLC name for up to 90 days before filing by filing a reservation application with the Illinois Secretary of State.
Does filing LLC Articles of Organization protect my Illinois LLC name?
Filing LLC Articles of Organization with the Illinois Secretary of State is only the first step to protect your LLC name. You should also consider registering your LLC name as a trademark.
Can I put an expiration date on my Illinois LLC in the Articles of Organization?
No, you cannot include an expiration date in your Illinois LLC Articles of Organization.
Does an Illinois LLC need an operating agreement?
No, an operating agreement is not required by Illinois law, but it is strongly recommended to help clarify the ownership and management of your LLC.
Can I have a foreign LLC and domestic LLC in Illinois?
Yes, if you have a foreign LLC, you can also form a domestic LLC in Illinois.
What is the difference between a domestic and foreign LLC in Illinois?
A domestic LLC is formed within Illinois boundaries, whereas a foreign LLC is formed outside of Illinois’s limits.
Can I file my out-of-state LLC as a foreign LLC in Illinois?
Yes, you can file as a foreign LLC in Illinois and obtain a Certificate of Authority to do business in Illinois.
What is needed to form a foreign LLC in Illinois?
To form a foreign LLC in Illinois, submit your Certificate of Good Standing from your home state and your Application for Admission of Foreign LLC to the Illinois Secretary of State.
Can I convert my existing business to an LLC in Illinois?
Yes, you can convert an existing business to an LLC by filing an Articles of Organization with the Illinois Secretary of State.
Can I obtain an EIN for my Illinois LLC before filing LLC Articles of Organization?
No, you cannot obtain an EIN for your Illinois LLC unless you have already filed your LLC Articles of Organization.
Am I required to publish a notice after creating an LLC in Illinois?
No, Illinois does not require LLCs to publish any notice after formation.
Does Illinois LLC have a Franchise Tax?
Yes, Illinois LLCs must pay an annual franchise tax.
When is my Illinois LLC franchise tax due?
Your Illinois LLC franchise tax is due on the 15th day of the fourth month after the fiscal year-end, which is usually April 15 for a December 31 year-end.
What is required for running an LLC in llinois?
A registered agent, Articles of Organization, franchise tax paid timely, annual report filings and good standing authority.
Is a registered agent required for my Illinois LLC?
Yes, an Illinois LLC must have a registered agent with a physical street address in the state.
What are annual reports and do I have to file them for my Illinois LLC?
Annual reports are reports filed with the state, which provide the names and addresses of LLC owners, payment details from the previous year and other administrative details. Yes, all Illinois LLCs should file an annual report with the Illinois Secretary of State.
Can I file Articles of Organization by fax or email?
No, Illinois Secretary of State does not accept filing by email or fax; it must be filed online or via mail.
Can I file Articles of Organization in person in Illinois?
Due to COVID-19 guidelines, in-person registration is not allowed till further instructions.
Does my LLC need a business license from the state of Illinois?
The state doesn’t require generic business licenses, but some professions may require state-specific licenses.
How can I find my filing date if I mailed the Articles of Organization for my LLC in Illinois?
You can call (217) 524-8008 and, after providing your name like it is stated in the Articles and its ID number and registered agent zip code, they will help you locate the day it was received.

Also Read

Conclusion

Registering an LLC Articles of Organization is critical in establishing your business as a legally recognized entity. By following this comprehensive guide and researching your state’s specific requirements, you can successfully navigate the registration process and set your LLC up for success. Remember that forming an LLC is just the beginning; ongoing compliance and diligent management are necessary to ensure your business thrives in the long run.

Leave a Comment