A hybrid business structure is a limited-liability company that shares characteristics of a corporation and sole proprietor.It allows its owners to insulate themselves from personal liability for business debts, does not require the payment of separate business taxes, and is subject to fewer regulations and restrictions than other companies.It’s easy to establish a company in Illinois.
Step 1: Pick a name for your company.
The first step in forming a limited liability company is to draft its Articles of Organization.You will use the form for this process.Picking a name for your company is one of the most important steps in the process.Any name currently reserved or registered with the Secretary of State and any state or federal agency must be distinguishable from your company’s name.The name must contain the words “Limited Liability Company” or ” L.L.C.”
Step 2: You should check to see if your name is available.
It is a good idea to see if the name you choose is acceptable under state law before you submit your Articles of Organization.You can either write to the Department of Business Services located in Springfield, Illinois, or you can call the department at (217) 524-8008.You can reserve the name of your company for 90 days with an optional form and $300.If your first choice is unavailable, try to have a few alternate names for your company.You might want to check to make sure the relevant URL is available so your online presence will have an appropriate domain name.
Step 3: The principal place of business is what you should design it to be.
Your company’s primary location for doing business must be indicated in your Articles of Organization.The legal jurisdiction applicable to your company will likely be determined by where you keep company records.This office can be in or out of state.
Step 4: You can choose an effective date.
Your company will start on this date.The date you file your Articles of Organization with the Department of Business Services can be either this or a later date.
Step 5: You should have a registered agent and office for your company.
All official correspondence from the Department of Business Services will be sent to this name and address.Your agent needs to be authorized to transact business in Illinois.Make sure your agent agrees to perform this role.Your registered office must be located in Illinois, have a valid mailing address, and match the business-office address of your agent.
Step 6: The purpose clause is needed for your limited liability company.
The business objectives of your company are outlined in this statement.Unless all members/managers are properly licensed under state law, this can only be a lawful purpose.
Step 7: Establish a duration for your company.
This is the amount of time you want your company to exist.”Perpetual” means it has no end date, or a future date on which you plan to liquidate your company.If you want to extend the life of your company after the dissolution date, you can file Articles of Amendment to change that date.
Step 8: The optional provisions should be drafted.
Provisions relating to the internal operation of your company can be included in the Articles of Organization if they are permitted by law.If your company is dissolved, you may want to add provisions about how major business decisions will be made.
Step 9: Decide if your company will be managed by a member or a manager.
A member of an limited liability company is either an investor or an owner.You must have at least one member in your limited liability company in Illinois.Each member is given equal rights in deciding how the business will be run.Several from the members’ number are elected to be responsible for the company’s business affairs.The names and addresses of members and managers are required in this part.
Step 10: The articles of organization should be signed by the organizers.
Each individual’s printed name along with their address should be included.If one of the organizers is a business entity, you need to provide the name, address, and title of that entity’s person signing on their behalf.
Step 11: The articles of organization should be filed.
The Department of Business Services in Springfield, Illinois is where you should file your Articles of Organization after you have drafted them.You can use the address on the top of the form to do this.You will need to pay a $500 filing fee.If you appear in person and pay an additional fee, your Articles of Organization will be reviewed within 24 hours.If you file online, your request will be considered expedited and you will have to pay an additional $100 fee.
Step 12: An operating agreement is needed for your company.
Before you start doing business, there are a number of other steps you should take.An operating agreement is the first of these.The agreement should outline the roles of each member, voting rights and how profits and losses will be allocated.You don’t have to file the agreement with the state.
Step 13: You need an employer identification number from the IRS.
If your company has more than one member, you will need this number to open a bank account, hire employees, and pay federal and state taxes.You can apply for this number online, by calling the IRS, or by completing and mailing a form to the address listed on the form.Make sure your Articles of Organization have been approved before applying for an Employer Identification Number.
Step 14: You can open a corporate bank account.
You will want your company to have its own bank account, separate from the bank accounts of its members.Depending on the requirements of the individual banks, you may need a copy of its Articles of Organization and an Employer Identification Number.
Step 15: Your company’s annual report needs to be filed.
State law requires every limited liability company to submit an Annual Report every year in order to continue to operate in Illinois.Six weeks before the due date, you will receive a form for the report.Before submission, your members or managers must sign this report.You can file this report by mail or online.You have to pay a fee for both mail and online filing.If you submit this report more than 60 days late, you will have to pay an additional $300.
Step 16: The appropriate agencies to file with are the federal, state, and local.
Depending on the business purpose of your limited liability company and the jurisdiction in which you organize, you may have to file additional forms with certain governmental agencies.It is best to ask an attorney or accountant for assistance in this matter because each industry is regulated differently.You can consult the U.S. Small Business Administration’s website or contact your local Chamber of Commerce.If you provide professional services that are regulated by the Illinois Department of Financial and Professional Regulation, you must register with that agency.
Step 17: Register with the Illinois Department of Revenue.
State law requires formation of a limited liability company to register with this agency.The Illinois Business registration application can be used online or in the mail.