Table of Contents
Write a comment
hi guys welcome to the simplify llc channel in this video we're going to explain how much it costs to start an llc in illinois this state is great for entrepreneurs who don't want to spend too much but it also has some nice add-ons depending on your business's needs if you're new to the channel don't forget to hit the like button and press the bell icon to subscribe and be notified when we publish a new video alright let's get started if you're planning to do business in illinois you'll need to register your llc in this state so you're likely trying to plan the cost good news you can get away with forming an llc in illinois for as little as 150 the basic cost is for your articles of organization and that's the same for both domestic and foreign llcs in illinois you pay the formation fee to the secretary of state in most cases this is all you need to establish your llc in illinois simply submit form llc 5.5 and pay the 150 and you should be in business literally in about 10 business days need to move more quickly illinois allows you to expedite your filing at the chicago and springfield offices for just 100 more and you'll get results within 24 hours as with any llc you'll need a registered agent that might be you if you reside in illinois or a designated person for your foreign llc either way choosing a registered agent is included in your articles of incorporation but here's where it gets tricky if you need to inform the secretary of state that your registered agent has resigned it's five dollars now that's not too bad but it costs 25 dollars to change your registered agent and if you don't report a resignation within 60 days you'll be hit with a 100 late fee so select the right person for the role and be sure to alert the state asap of any changes so now that you know the budget let's see about registering your business's name in many states it can be a race to get your documents in order so you can claim your name but illinois has a nice feature if you have that perfect name in mind but your articles of incorporation aren't ready you can reserve it with the state for just 25 which is a fair price for the convenience of a little extra time now what if your llc includes a sub brand or you'd like to use a different name for your illinois llc well you'll need to request a dva name dba is short for doing business as and it's essentially a registered alias for your illinois llc many states charge a flat fee for a dba but in illinois it's a bit different if you file the dba in a year ending in zero or five your fee is 150 in addition to the hundred and fifty dollars for the articles of incorporation if you file it during a year ending in one or six it's a hundred and twenty dollars two or seven it's ninety dollars three or eight it's sixty dollars and if the year ends in four or nine it's just 30 to register a dpa the idea is to spread out your costs over a five-year period so if it's not urgent to register your dba in illinois wait for a year that ends in four or nine just remember you'll need to renew your dba every five years and be sure to do it at least 60 days before it expires or the state will fine you one hundred dollars but wait that's not all you must stick with your dba name during that five years or else it's 25 to change it once your business is up and running you'll need to file an annual report which carries a filing fee of just 75 this is due on the first day of the month following your registration anniversary so if you registered on august 15th your annual report due date is september 1st be sure to get it on time because as with all other parts of illinois llcs the late fee is 100 and that's it illinois is overall quite affordable to register and maintain an llc as long as you time it right and hit your deadlines this state also has no minimal annual franchise taxes although you do have personal income taxes overall though it's fairly simple to register your llc in illinois and there are some nice benefits for entrepreneurs who want to expedite the process or get first dibs on a name well that's it for today thanks for watching if you want to know more about what an llc is its benefits and disadvantages you'll find the link to those videos in the description box below also don't forget to like and subscribe feel free to write in the comments if you have any further questions and we will see you next time
Thanks for your comment Curt Jock, have a nice day.
- Jocelyn Burket, Staff Member
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 Malisa your participation is very much appreciated
- Jocelyn Burket
About the author
I've studied financial economics at Louisiana College in Pineville and I am an expert in distributed database. I usually feel crappy. My previous job was customs inspector I held this position for 7 years, I love talking about magnet fishing and qawwali. Huge fan of Joey Fatone I practice horse riding and collect barbie dolls.