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Written by : Valeria Alire |
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so today we are talking about how to start an llc in illinois my name is eric and i'm going to give you three methods for starting up your llc the first would be going through your state website which we're going to discuss in detail the second is using online tools to set up your llc and the third is going through an attorney but at the end of this video i'll show you how you can go through an attorney with a free consultation involved so perhaps before you dive off the deep end spending a ton of money with an attorney you can figure out if that's the right fit for your needs also what i'm going to be talking about in this video are important facts on how to make sure that your llc is legit a lot of people overlook these things and if you're not familiar with the terms such as piercing the corporate veil or understanding exactly what a registered agent is and what they do for you then you want to make sure that you watch this entire video to make sure that you're setting up your llc in the proper way so why don't we get started with the state website so here we are on the state website and i've got some good news and bad news for you so some of the good news here is if you look at the state filing fees and we scroll down you'll see that the old filing fee just for your articles of organization was 500 and now it's 150 so the cost of setting up an llc in the state of illinois is actually reduced quite a bit recently so that's great to hear the bad news is i don't think that this website is laid out too great um it's a lot of information and what i have found is other services will walk you through kind of more step-by-step where a state website is just somebody working for the state for the government and they just kind of throw every bit of information at you and then say good luck so what i should mention too is the link here above any link or resource mentioned in this video will be in the description below so if you go to the description anything you could possibly need that was mentioned in this video is going to be mentioned there so what you do is you kind of go through and click file and we're just going to set up a standard llc and then uh this particular junction here i'm just saying yes i kind of meet all these provisions for the llc and then this is where it gets a little bit important here is that if you put in an llc name you want to make sure that it is not taken already so you can see i already have an example here of abc llc what they'll do is they'll search their database here and they'll let you know you know what we've already got these types of llc's with these names here so if the specific one that you're looking for is here then you may want to consider a different name but if it's not you can click i confirm and you can continue through so i just got some dummy information just to get through to the next page and this is where i start to have kind of issues with state websites so in this particular case it's talking about a registered agent registered office it's saying that a limited liability company cannot act as its own registered agent the address of the registered office must be located within the boundaries of illinois and then you know a po box is not acceptable who is your registered agent so i think most people going through this at this point are just going to say you know what it's my friend johnny down the street i'm going to have him be my registered agent he lives in illinois he'll take care of me so the reason why this is an issue is in the case of you being sued by an attorney now the whole reason you set up an llc is to limit your liability and if you're not doing things like this seriously you're not taking this seriously as far as your registered agent you might be opening up yourself to a lot of liability this might be a good point in the video to explain exactly what an llc is and what it is not some people think that an llc is going to create some sort of tax savings for your tax advantage it does not it's simply for limiting your liability what an llc does is you have your business assets and then you have your personal assets your personal assets might be your personal home personal bank account your personal car and the llc creates a division between these two things so what happens is if you are sued an attorney who's suing you is going to try to do something called pierce the corporate veil now that is legal jargon for basically trying to find cracks in your llc to say that your llc is not legit now one of the ways that this kind of happens is if you have issues with your registered agent now if we go to this tool called ink file they explain what a registered agent is so what they do is official letters and correspondence from your secretary of state services of process notices so if you're sued they're going to make sure that you're appearing in court official federal government correspondence information notifications tax forms and requests for payment and request to complete permits company filings or reports so again if you're going through your buddy down the street and he's not sending you these documents not making sure that you're renewing with the state and making sure that you're doing your annual reports you might have a crack in your llc so when you're sued by an attorney they're going to find that crack they're going to be able to pierce the corporate fail and they're going to be able to erase that division between your business and personal assets so what this means is they could potentially come after your personal home your car your personal bank account so that's why it's really important when you're going through these steps is to not just kind of breeze through these types of things and say hey my friend down the street is my registered agent so this particular point in juncture what i'd like to do is talk about why i think that some of the online tools outside of your state website are pretty advantageous probably one of the most popular one is legalzoom the only issue i have with legalzoom is they're kind of the original gangster in this space and that being the case what they can do is they can actually charge you a 79 fee on top of your filing fee so in your particular case the state filing fee is probably going to be around 150 154 but then it's going to be 79 on top of that now the service that i was just showing you is called the ink file i like this service for a couple reasons one of them is their learning center here is super helpful so if you're looking for state filing prices or what we were looking at just a moment ago is about registered agents start a business checklist is great if you're very early on in your business but one of the other things too is they've incorporated over 250 000 businesses since 2004 and your eyeball might have been attracted to this big zero number here so if you launch your business with this service by clicking this button or this button up here what's going to happen is is you'd say i want an llc which you know what 80 of all entities created are llc's so it's a very popular choice and then we go down to illinois it's
Thanks for your comment Mary Lawrie, have a nice day.
- Valeria Alire, Staff Member
welcome back today we're going to talk about the different types of LLC's we'll address just a few in this video I'm mark Lida from the light a law firm let's get started LLC's can be used for all different types of purposes and can be set up in many different ways the first type of distinction between different LLC's is whether your LLC is a single member LLC alright multi-member LLC that's pretty self-explanatory a member is considered an owner of the LLC so a single-member LLC simply means that there's one owner of the LLC and a multi-member LLC means that like a partnership there are multiple owners LLC's can be owned by individuals or by other LLC's so if you have multiple LLC's owning a single LLC that would be considered a multi-member LLC another distinction between different types of LLC's is member managed versus manager managed this too is fairly self-explanatory but when you're registering your LLC you'll probably be asked to declare whether your LLC is a member managed LLC or a manager managed LLC all that means is that a member managed LLC is where the actual member of the LLC and owner of the LLC is actually running the show and managing the operations of that LLC where as a manager manage two LLC is a type of situation where maybe one person owns the LLC but they delegate the task of actually managing that LLC to another person who is a non-member that would be a manager managed LLC another big distinction you see among LLC's are holding or umbrella LLC's versus actual operating LLC's this isn't just an LLC concept it's a company concept in general there are companies that exist only to hold assets like real estate or to act as an umbrella holding company for other companies subsidiary companies those are considered holding companies and then on the other hand you have actual operating LLC's so that's another distinction you see holding LLC's versus operating LLC's the reason that holding companies exists is to create additional layers of protection from liability so these are just a few different types of LLC's there are more and there are different ways that you can use LLC's but these are some of the major distinctions that you see you have single member LLC's versus multi member LLC's you have member managed LLC's and manager managed LLC's you have Holding Company LLC's and operating LLC's but they're all LLC's they're all the same type of basic legal structure and depending on your state you register them in the same way it's just you're choosing to do different things with each of those different types of LLC's so that is an overview of some basic types of LLC's and that's in the distinctions between them we go into a little more detail all about LLC's in this playlist thanks for watching and please remember to click like and subscribe to help keep legal education free for small business cars you
Thanks hys5taG your participation is very much appreciated
- Valeria Alire
About the author
I've studied multilinear algebra at Texas College in Tyler and I am an expert in feminist archaeology. I usually feel satisfied. My previous job was environmental engineer I held this position for 28 years, I love talking about tennis polo and macrame. Huge fan of Javier Bardem I practice nordic combined and collect breweriana.
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