Forming an LLC in Illinois and Preliminary Information
Illinois is a unique state not only because it is home to a major metropolis like Chicago, but also because it is geographically connected to nearly every major urban center across the country.
It is always much easier to do business in a crowded place, especially in areas where people live close to each other. Being close to a major city provides many advantages to businesses because cities attract a lot of economic activity, so money and people are constantly in circulation. Illinois is a state with exactly these advantages.
We should not ignore the high tax rates and some regulations in this state due to its high population and hosting a metropolis like Chicago.
We have prepared a guide about forming an llc in Illinois, costs, forming an llc at the most affordable price and the steps you need to take at this stage.
To form an LLC in Illinois, an application must be made to the Illinois Secretary of State. $150 is paid to the state for the installation application. After the installation is completed, your company formation document will be delivered to you. When you receive the document, your LLC company in the state of Illinois has been officially formed.
The registered agent company, from which you will receive support during the installation phase, will provide the mentioned formation documents for the installation. Thus, you do not need to take any extra action. To form your company, you can get online service from Northwest Registered Agent by paying the 39+ State filing fee.
Costs
| Service | Price | In installation | Annual |
| Fee to be Paid to the State During LLC Company Formment | 150$ | ✔ | – |
| Annual Filing | 75$ | – | ✔ |
- In addition to the installation fee, do not forget to add the Northwest Agency fee of $ 39 to the cost.
- You can renew your Northwest agency fee next year for $125 (address included)
What is Registered Agent?
Agencies that provide services for entrepreneurs who do not reside in the United States to form an llc, receive official documents from the state, and ensure that the company remains healthy are called Registered Agents.
When you decide to form an LLC in Usa, Northwest is one of the best options. Northwest provides a free mailing address for your company.
There are also different agencies, you can access the full list and detailed review page of other Registered Agent companies that establish LLCs from this link .
How to Form an LLC in Illinois?
You can form an LLC remotely online in the state of Illinois, you do not need to visit the state in person. Additionally, non-US citizens are not required to have an ID or passport. You will need a registered agent for the installation, who will prepare and file the necessary documents online for you with the state. If you do business with the Northwest agency, you do not need to pay extra for the company address because this agency has offices in all US states and allows you to use its offices as your business address. Other details are below.
- Determine Your Company Name: First, you must determine the name of your LLC company to be established in Illinois. Make sure that there are no conflicts with company names already in the state database and that the name you choose is unique. Do a search on the state website If you are having trouble accessing the state website from your browser, you can use a US-based VPN or Opera Browser. Choosing a Name for an LLC Company for name rules .
- You can get a domain name for your company: Check if the website domain name you will create for the business name you choose has been registered before. With Namecheap you can quickly register an llc domain name so that no one else can get and use your domain name in the future.
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- Apply Online: Determine a Registered Agent to establish your company and keep it active. Northwest is among the most affordable and highest quality options. the Northwest LLC formation application page and order them to form your company online. Northwest will fulfill all transactions for you according to the order form in your application and will be your Registered Agent in this state
- Operating Agreement: An Operating Agreement contains the rules between LLC members. This includes, but is not limited to, the rights and duties of each member, how profit/loss is divided, and how taxes are paid. Even if you own the LLC yourself (“Single-member LLC”), it is highly recommended that you keep an Operating Agreement handy. You do not need to send the Operating Agreement you have prepared to the Illinois Secretary of State or any other government agency; just keep a copy. Northwest will prepare a contract for you free of charge after company establishment and deliver it to you electronically.
The approval and formment time of an LLC company is 10 days on average in the state of Illinois.
What happens after your LLC company is approved in the state of Illinois?
- After the company is formed, your LLC formation document is delivered to you digitally by your agency.
- Once you receive the incorporation documents (digitally), obtain a Federal Identification Number (EIN) from the IRS. Without EIN, you cannot open a bank account or register for payment systems such as virtual POS (stripe) or paypal. You can also apply for an EIN yourself by filling out form SS4 and faxing it to the IRS. the guide here . The other option for EIN is to get a paid service. You can get EIN application service from us for $ 29. We can process it on the same day and carry out the entire process for you. this order form after company setup .
State Requirements and Taxes
Federal Taxes: All LLCs require a federal tax identification number, EIN. An EIN is basically the business version of a social security number and is used for important LLC functions. If you derive your LLC company income from American citizens, you may be required to pay federal income tax to the state (file with form 1040-NR) after a certain turnover.
State Requirements: Illinois LLCs must file an annual report with the state each year, with or without income. These annual reporting requirements must be met each year.
Sales Tax Rate in Illinois
Sales Tax in Illinois: Illinois has sales tax. If your LLC sells physical property, such as furniture, appliances, and motor vehicles, to customers in Illinois, you must collect sales tax and remit it to the state revenue agency. There is no sales tax on digital products in Illinois. guidance published by the state regarding sales tax . When you collect sales tax, you must register with the Illinois department of revenue and then make periodic sales tax payments on goods sold. Illinois statewide sales tax is 6.25%.
Obtaining Business Licenses and Permits
If you own a business such as a brick-and-mortar shop or store in any city within the state and do physical retail business there, you may need some licenses and permits depending on what you do.
Annual Reporting
Illinois LLCs are required to file an annual report each year and pay a $75 filing fee.
You must file an Annual Report and Frnachise Tax every year In the state of Illinois, the annual report fee is $75.
In Illinois, the annual report deadline depends on when you formed your LLC. The anniversary of forming the LLC is the first day of the month. Ex: If you formed your LLC on August 15, you must file your annual report by August 1
For more information about general LLC taxes, you can check out the article Taxation in America
