How to Start an LLC in Illinois: Complete 2026 Guide

How to Form an LLC: Step-by-Step

1. 1

   Choose Your Illinois LLC Name

   Select a unique name that includes 'LLC' or 'Limited Liability Company' and isn't already taken in Illinois. Search the Illinois Secretary of State business database to verify availability before proceeding with your filing.

   Pro tip: Reserve your chosen name for 90 days by filing Form LLC-1.20 with a $25 fee if you're not ready to file immediately.
2. 2

   Appoint a Registered Agent

   Designate a registered agent with an Illinois street address who can accept legal documents during business hours. This can be yourself, another person, or a professional registered agent service.

   Pro tip: Using a professional service protects your privacy and ensures you never miss important legal notices, even when traveling.
3. 3

   File Articles of Organization

   Submit Form LLC-5.5 to the Illinois Secretary of State with the $150 filing fee. Include your LLC name, registered agent information, and management structure details. File online at ilsos.gov for fastest processing.

   Pro tip: Filing online typically processes faster than mail submissions and provides immediate confirmation of receipt.
4. 4

   Create an Operating Agreement

   Draft an operating agreement outlining ownership percentages, member responsibilities, and business procedures. While not required by Illinois law, this document protects your limited liability status and prevents future disputes.

   Pro tip: Even single-member LLCs benefit from an operating agreement to establish clear business practices and maintain corporate formalities.
5. 5

   Obtain an EIN from the IRS

   Apply for an Employer Identification Number (EIN) directly through the IRS website at no cost. This federal tax ID is required for business banking, hiring employees, and filing tax returns.

   Pro tip: Apply for your EIN immediately after your LLC is approved - you'll need it to open a business bank account.
6. 6

   Open a Business Bank Account

   Open a dedicated business bank account using your EIN and LLC formation documents. Keep business and personal finances separate to maintain your limited liability protection and simplify tax filing.

   Pro tip: Shop around for business banking options - many banks offer incentives for new LLCs, including waived fees for the first year.
7. 7

   Obtain Required Business Licenses

   Research and obtain any necessary business licenses or permits for your industry and location. Check with Illinois Department of Revenue, local municipalities, and relevant professional licensing boards for requirements specific to your business type.