Borrowing a line from Leynrd Skynrd’s song, three quick steps to the doorway of business organization will get you into today’s preferred format for your business – a limited liability company (“LLC”). So here are the three quick steps:
- Draft and file the Illinois Articles of Organization. This is a required form offered by the Illinois Secretary of State and gives the State all of the required details for your LLC. This is required in every state. Although the questions seem simple, each one can have some serious ramifications for your business. Even the choice of a Registered Agent is one that should be considered with care.
- Every LLC needs an Operating Agreement. The is an important document as it relates to the ownership, management and taxation of the business.
- If you have more than one member, then it is even more important since it governs management, distribution and how to deal with member-member disputes.
- It should help keep you out of the courts by offering an alternative dispute mechanism.
- Is your LLC member managed or manager managed? This is a serious choice.
- Apply for your Federal Employer Identification Number (“FEIN” or “EIN”). This may not be necessary if you plan to treat the LLC as a “pass-through” entity as a single member LLC. This question in and of itself needs some thoughtful consideration before you make the choice.
These are three basic steps, but of course the devil is always in the many other details to starting an LLC or any business. Our firm has been doing this for years and as one of our services we offer a complete “Checklist of Things to do when Forming an LLC“ which we walk you thru to get you started on the right path.
For more details on starting an Illinois Limited Liability Company and get going on the LLC path, check our my firm’s website and in particular the page on “Starting an Illinois LLC.” We can get you into your new business organization within 24 hours.