Business lawyer Rosemont Illinois | Setting Up an LLC

An LLC is one of the most popular business structures because it combines the best features of a partnership and a corporation. An LLC provides personal liability protection, but you don’t have to worry about double taxation like with a c-corporation. If you need a business lawyer Rosemont Illinois to help you set up your LLC, contact The Law Office of David Hyde at 312-210-9598. We have the background and experience to guide your startup or small business and ensure you have practical and cost-effective business solutions and a foundation for success. 

An LLC is a hybrid entity that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation. An LLC can be formed by filing articles of organization with your state’s Secretary of State, which establishes its legal existence in that state. An important benefit of forming an LLC is that it gives you greater flexibility when determining how much money each member invests in the business as well as how they will share profits and losses among themselves.

How to Form an LLC

If you’re considering forming an LLC, there are a few things to consider. First, choose a business name. Under Illinois law, the name of a new LLC must be different from the names of other LLCs or corporations that have registered with the Secretary of State. The name also has to end with LLC, Limited Liability Company, or L.L.C.

The first step to setting up your LLC is choosing a business name. You can choose any name you like, but it’s best to choose something that clearly identifies what kind of business you’re in. For example, if you’re opening an accounting firm and have named it “Accounting Services,” then clients will know exactly what they are getting when they hire your company. It also should not be misleading or offensive to anyone reading it. 

File Articles of Organization with the State

Another  step in setting up your LLC is to file articles of organization with your state. This is a form that tells the state you’re starting an LLC and gives basic information about the company, such as its name, address and member(s). Most states require businesses to file their articles of organization within 30 days after incorporating. 

For LLCs in Illinois, the articles of organization must include the following: Name of your Illinois LLC,  LLC’s principal place of business in Illinois,  effective date of the LLC (can’t be more than 60 days after filing articles), name and Illinois address of the registered agent, purpose of the LLC, and the dissolution date, if the LLC operating agreement specifies one. In addition, you may include the name and address of the LLC’s manager, if applicable and the name and address of the organizer who is filling out the form.

This step does require you to have a registered agent. This who the state will have as an official contact for the business. Business lawyer Rosemont Illinois David Hyde is available to be a registered agent as well as help you with the legal needs of your business. 

Obtain a Tax Identification Number (EIN) from the IRS

Obtaining a Tax Identification Number (EIN) from the IRS is an important step in setting up an LLC. The EIN is a unique nine-digit number that is used to report taxes, open bank accounts, and apply for licenses.

In all states, including Illinois, LLCs are regarded as pass-through entities for tax purposes. This means that the LLC itself does not pay income taxes. Instead, business profits and losses pass through to each owner’s personal tax return. Each owner is taxed at their federal and state personal tax rate on their share of the profits.

Illinois also has a separate tax on LLCs called personal property replacement tax. The current tax rate is 1.5% of the LLC’s income, and it’s due once per year. Single-member LLCs are exempt from paying the personal property replacement tax. Along with paying required taxes, Illinois LLCs have to file an annual report with the Secretary of State each year. If you need assistance with setting up or modifying your business, contact our business lawyer Rosemont Illinois for a free consultation. 

Apply for Business Licenses & Permits 

Business licenses can regulate business formation, advertising, signs, parking and many other aspects of running a business. The state has information about business licenses for a variety of industries. The Illinois Department of Financial and Professional Regulations issues professional licenses. If your LLC is in a professional industry, such as a doctor’s office or law firm, you’ll need to obtain a certificate of registration from that department before you can launch your business.

In addition, if you plan on selling products or services in your area, it is likely that there are additional regulations and requirements pertaining specifically to those industries. For example, if you plan on selling food items at all times during normal business hours, then there will be some kind of health inspection requirements that must be met before opening up shop. If selling alcohol products such as wine or spirits as part of the business, there will be a permit required. 

There are other licenses and permits that you may need depending on the type of business you have. It is recommended that you contact a business lawyer Rosemont Illinois to make sure everything is set up properly.