Start a Free LLC in Illinois
LLC Register forms your free Illinois LLC, serves as your Illinois registered agent and keeps your LLC in good standing. Illinois charges $150 to file the Articles of Organization with the Illinois Secretary of State.

Illinois LLC
- Illinois LLC Formation
- Free
- Illinois LLC Name Search
- Free
- Illinois Registered Agent
- $99 per year
- Annual Compliance
- Free
- Illinois State Filing Fee
- $150
Transparent Cost Guide to Form an Illinois LLC with LLC Register
Every fee, line by line. The state fee is passed through at cost; there is nothing else to add at checkout.
| Cost item | LLC Register fee | Illinois state fee | Estimated total | One-time or annual |
|---|---|---|---|---|
Illinois LLC name search | $0 | $0 | $0 | Free |
Illinois LLC business name generator | $0 | $0 | $0 | Free |
Illinois LLC formation (articles of organization) | $0 | $0 | $0 | Free |
Illinois registered agent | $99 | $0 | $99 | Annual |
Illinois LLC compliance (annual report) | $0 | $75 | $75 | Annual |
Illinois state filing fee | $0 | $150 | $150 | One-time |
Illinois LLC formation and annual compliance are included with the $99 annual registered agent service. You also pay the $150 state filing fee required by the Illinois Secretary of State. That makes $249 in year one, and renewal is $99 per year, plus the $75 Annual Report fee paid to the state at cost.
Comprehensive 10-Step Guide to Form an Illinois LLC
From the name search to your first annual report, in the order you will do them.
Step 1 — Choose a compliant Illinois LLC name
Your Illinois LLC name must contain "Limited Liability Company" or an abbreviation such as "LLC" or "L.L.C.", and cannot contain words like "Corporation," "Incorporated" or "Limited Partnership" that suggest a different entity type. Check that your name is available with the free Illinois Secretary of State business name search before you file.
Name reservation: for $25 with an Application to Reserve a Name; the reservation lasts 90 days
Step 2 — Select a registered agent in Illinois
Every Illinois LLC must name a registered agent to receive legal papers and state mail. Your registered agent needs a physical Illinois street address, a P.O. box alone is not accepted, and can be an individual or an authorized business entity. LLC Register's Illinois registered agent service is $99 a year and includes LLC formation and annual report filing.
Required by the Illinois Limited Liability Company Act, 805 ILCS 180
Step 3 — Decide how the Illinois LLC will be managed
Member-managed LLCs are run by their owners; manager-managed LLCs appoint managers to run the business. You choose the structure when you file the Articles of Organization and set the details in your operating agreement.
Member-managed or manager-managed
Step 4 — File the Articles of Organization with the Illinois Secretary of State
Submit the Articles of Organization (Form LLC-5.5) and pay the $150 state filing fee. You can file online through the Secretary of State's LLC filing system, or by mailing a paper form to the Department of Business Services. Standard review takes about 10 business days. Expedited filing is available available within 24 business hours for an additional fee calculated at checkout online. We prepare and file it for you.
State fee: $150
Step 5 — Create an LLC operating agreement
Illinois does not require an operating agreement, and you never file one with the state. Ours is included and ready to sign.
Included with LLC Register
Step 6 — Obtain an EIN or FTIN
Get your federal Employer Identification Number from the IRS. It is free, and applying online gives you the number right away. You need it to hire employees, open a business bank account and file federal taxes; owners without a Social Security number apply with Form SS-4.
Free from the IRS · Form SS-4
Step 7 — Open a business banking account
Keep business and personal money apart to protect your limited liability. Banks usually ask for your filed Articles of Organization, your EIN and your operating agreement.
Bring your formation document, EIN and operating agreement
Step 8 — Register for Illinois taxes, permits and licenses
If you sell taxable goods or services, register for a Certificate of Registration with the Illinois Department of Revenue through MyTax Illinois. Before you hire, register with the Illinois Department of Employment Security for unemployment insurance, and with the Department of Revenue for income tax withholding. Check with your city and county for local business licenses.
Tax agency: Illinois Department of Revenue
Step 9 — Consider other LLC documents
Such as a banking resolution, a Certificate of Good Standing ($25), or foreign qualification if you operate in other states. If you use a brand name other than your LLC's legal name, file a Application to Adopt, Change, or Cancel an Assumed Name (Form LLC-1.20).
Certificate: $25 · DBA: $120
Step 10 — Set reminders for annual compliance
Illinois requires the Annual Report every year. It is due before the first day of your LLC's anniversary month every year. The first one is due before the first day of your LLC's anniversary month in the year after formation. We track the deadline and file it on time while your agent service is active.
State fee: $75 · Annual
Illinois LLC Formation Facts Table
The official numbers, names and links for an Illinois LLC, each checked against the state agency.
Illinois LLC filing agency | Illinois Secretary of State, Department of Business Services, Limited Liability Division |
|---|---|
Illinois LLC formation document | Articles of Organization (Form LLC-5.5) |
Illinois LLC filing fee | $150 |
Standard processing time | Standard review takes about 10 business days. |
Expedited filing | Available available within 24 business hours for an additional fee calculated at checkout online |
Illinois online LLC filing | apps.ilsos.gov/llcarticles/index.do |
Illinois LLC name search | swyftfilings.com/business-name-generator |
Name reservation | Available for $25 with an Application to Reserve a Name; the reservation lasts 90 days |
Illinois registered agent required | Yes |
Registered agent address rule | Your registered agent needs a physical Illinois street address, a P.O. box alone is not accepted, and can be an individual or an authorized business entity. |
Can you be your own registered agent | Yes |
Illinois registered agent service | /registered-agent/illinois |
Annual or biennial filing | Annual Report, every year |
Annual report state fee | $75 |
First compliance deadline | Before the first day of your LLC's anniversary month in the year after formation |
Recurring due date | Before the first day of your LLC's anniversary month every year |
Late filing penalty | A report filed more than 60 days after its due date adds a $100 late penalty, and the state can eventually dissolve your LLC administratively. |
Annual Report filing | ilsos.gov/publications/pdf_publications/llc501.pdf |
Illinois Personal Property Replacement Tax | Illinois has no separate franchise tax, but a multi-member LLC taxed as a partnership pays a 1.5% Personal Property Replacement Tax on its Illinois net income, on top of members' individual income tax. |
State income tax on LLC profits | Illinois taxes individual income at a flat 4.95% rate, so a default pass-through LLC's profits are taxed once on the members' Illinois returns. A multi-member LLC also owes the 1.5% Personal Property Replacement Tax, and an LLC taxed as a C corporation instead pays the 7% corporate income tax plus a 2.5% replacement tax. |
Sales tax permit | Certificate of Registration (Illinois Business Tax number), issued by Illinois Department of Revenue, via MyTax Illinois |
Operating agreement required by law | No |
Newspaper publication required | No |
Series LLC allowed | Yes |
Professional LLC (PLLC) allowed | Yes |
Certificate of good standing fee | $25 (Certificate of Good Standing) |
Foreign LLC registration fee | $150 (Application for Admission to Transact Business (Form LLC-45.5)) |
Amendment fee | $50 (Articles of Amendment (Form LLC-5.25)) |
Dissolution fee | $5 (Statement of Termination (Form LLC-35.15)) |
DBA (assumed name) filing | $120 (Application to Adopt, Change, or Cancel an Assumed Name (Form LLC-1.20)), filed with Illinois Secretary of State |
Illinois LLC law | ilga.gov/legislation/ilcs/ilcs3.asp?ActID=2277&ChapterID=65 |
Free trademark search | trademarkengine.com/free-trademark-search |
Trademark registration | trademarkengine.com |
Virtual mailbox | snapmailbox.com |
Apply for an EIN (IRS) | irs.gov/businesses/small-businesses-self-employed/get-an-employer-identification-number |
Author: LLC RegisterLast reviewed 9/30/2026
Illinois agency: Illinois Secretary of StateLast reviewed 9/30/2026
Legal Requirements to Start an Illinois LLC
What Illinois law requires of every LLC, with the rule and the agency that enforces it.
A distinguishable LLC name
Your Illinois LLC name must contain "Limited Liability Company" or an abbreviation such as "LLC" or "L.L.C.", and cannot contain words like "Corporation," "Incorporated" or "Limited Partnership" that suggest a different entity type. Search the name for free with the Illinois business name search before you file. You can reserve a name for $25 with an Application to Reserve a Name; the reservation lasts 90 days. The rules come from the Illinois Limited Liability Company Act, 805 ILCS 180.
An Illinois registered agent
Every Illinois LLC must appoint and keep a registered agent in Illinois. Your registered agent needs a physical Illinois street address, a P.O. box alone is not accepted, and can be an individual or an authorized business entity. To change agents, file the Statement of Change of Registered Agent and/or Registered Office (Form LLC-1.36/1.37) ($25). LLC Register's Illinois registered agent service is $99 a year and includes LLC formation and annual report filing.
The Articles of Organization
Your LLC exists once the Illinois Secretary of State accepts your Articles of Organization (Form LLC-5.5) and the $150 filing fee. You can file online through the Secretary of State's LLC filing system, or by mailing a paper form to the Department of Business Services. Standard review takes about 10 business days. Expedited filing is available available within 24 business hours for an additional fee calculated at checkout online.
An operating agreement
Illinois does not require an operating agreement, and you never file one with the state. Even where it is optional, a written operating agreement sets ownership, voting, profit splits and what happens when a member leaves, and banks often ask for one.
Annual Report
Illinois requires every LLC to file the Annual Report every year for $75. It is due before the first day of your LLC's anniversary month every year. The first one is due before the first day of your LLC's anniversary month in the year after formation. A report filed more than 60 days after its due date adds a $100 late penalty, and the state can eventually dissolve your LLC administratively.
State taxes and licenses
Illinois has no separate franchise tax, but a multi-member LLC taxed as a partnership pays a 1.5% Personal Property Replacement Tax on its Illinois net income, on top of members' individual income tax. Illinois taxes individual income at a flat 4.95% rate, so a default pass-through LLC's profits are taxed once on the members' Illinois returns. A multi-member LLC also owes the 1.5% Personal Property Replacement Tax, and an LLC taxed as a C corporation instead pays the 7% corporate income tax plus a 2.5% replacement tax. If you sell taxable goods or services, register for a Certificate of Registration with the Illinois Department of Revenue through MyTax Illinois. See the Illinois Department of Revenue for registrations.
Illinois LLC Company Cost Comparison
Published prices for forming and keeping an Illinois LLC, compared line by line.
| What you pay for | LLC Register | LegalZoom | ZenBusiness |
|---|---|---|---|
LLC formation service | $0 | $0 | $0 |
Illinois filing fee | $150 | $150 | $150 |
Registered agent, first year | $99 | $249 | $99 |
Annual report filing | $0 | $99 | $100 |
First-year total | $99 + state fee | $249 + state fee | $99 + state fee |
Registered agent renewal | $99 per year | $249 per year | $199 per year |
Competitor prices are for each company's lowest-priced LLC package, as published on its own website on September 29, 2026. The Illinois state fee is extra with every provider. Prices change; check each provider before you buy.
Why Form Your Illinois LLC with LLC Register
One price, the whole bill up front, and your LLC kept in good standing every year.
$99 a year. That is the whole price.
The same $99 at renewal, every year. No tiers to compare and nothing pre-checked at checkout.
Formation included
We prepare and file your Articles of Organization with the Illinois Secretary of State. You pay only the $150 state fee, at cost.
An Illinois registered agent
A physical Illinois address for legal and state mail, with scans sent to you the same day.
Your annual compliance, handled
We track the Illinois deadlines and file your Annual Report on time while your agent service is active.
Every fee shown before you pay
The cost guide above is the bill. State fees are passed through at cost and never marked up.
Support by email
Real people answer your questions by email, before and after your Illinois LLC is formed.
Important Illinois LLC Resources and Links
Official Illinois offices, forms and data in one place. Every link goes to the source.
State government offices
Filing, forms and records
- Online LLC filingapps.ilsos.gov
- Business name searchapps.ilsos.gov
- Articles of Organization (Form LLC-5.5) formilsos.gov
- Certificate of Good Standingilsos.gov
- Annual Report filingilsos.gov
- Foreign LLC registration (Application for Admission to Transact Business (Form LLC-45.5))ilsos.gov
- DBA (Application to Adopt, Change, or Cancel an Assumed Name (Form LLC-1.20))ilsos.gov
- Illinois Limited Liability Company Act, 805 ILCS 180ilga.gov
Taxes, permits and licenses
Illinois business data and help
- Population and demographicsU.S. Census Bureau QuickFacts, Illinois
- Small business statisticsSBA Office of Advocacy, 2025 state small business profiles
- Illinois Small Business Development Center Networkilsbdc.org
- U.S. Small Business Administrationsba.gov
- SBA local assistanceFind SBA offices and advisors near you in Illinois
Illinois LLC FAQs
Short questions, direct answers about forming and running an LLC in Illinois.
How much does it cost to start an LLC in Illinois?
Per the Illinois Secretary of State, as of September 2026, Illinois charges $150 to file the Articles of Organization. After that, the Annual Report costs $75 every year. With LLC Register, formation is included in the $99-a-year Illinois registered agent service, so year one costs $249.
How long does it take to form an LLC in Illinois?
Standard review takes about 10 business days. Expedited filing is available available within 24 business hours for an additional fee calculated at checkout online. Your LLC exists once the state accepts your filing.
How do I start an LLC in Illinois?
To start an LLC in Illinois, choose an available name, appoint an Illinois registered agent, and file the Articles of Organization with the Illinois Secretary of State for $150. Then sign an operating agreement, get a free EIN from the IRS, open a business bank account and register for any state taxes. LLC Register files it for you as part of the $99-a-year registered agent service.
Can I form an LLC online in Illinois?
Yes. You can file online through the Secretary of State's LLC filing system, or by mailing a paper form to the Department of Business Services. The Articles of Organization costs $150.
What is the Illinois LLC formation document called?
In Illinois you form an LLC by filing the Articles of Organization (Form LLC-5.5) with the Illinois Secretary of State. Other states call this document the articles of organization or the certificate of formation. The filing fee is $150.
Is there an expedited LLC filing option in Illinois?
Yes. Expedited filing is available available within 24 business hours for an additional fee calculated at checkout online. Standard review takes about 10 business days.
How do I do an Illinois LLC name search?
Use the Illinois Secretary of State's free online business name search to check whether your LLC name is available. Your Illinois LLC name must contain "Limited Liability Company" or an abbreviation such as "LLC" or "L.L.C.", and cannot contain words like "Corporation," "Incorporated" or "Limited Partnership" that suggest a different entity type.
What are the Illinois LLC name requirements?
Your Illinois LLC name must contain "Limited Liability Company" or an abbreviation such as "LLC" or "L.L.C.", and cannot contain words like "Corporation," "Incorporated" or "Limited Partnership" that suggest a different entity type. The rules are set by the Illinois Limited Liability Company Act, 805 ILCS 180.
Can I reserve an LLC name in Illinois?
Yes. You can reserve a name for $25 with an Application to Reserve a Name; the reservation lasts 90 days. A reservation is optional; filing the formation document also secures the name.
Do I need a registered agent for my Illinois LLC?
Yes. Every Illinois LLC must have a registered agent. Your registered agent needs a physical Illinois street address, a P.O. box alone is not accepted, and can be an individual or an authorized business entity.
Can I be my own registered agent in Illinois?
Yes. A member or manager can serve as the LLC's registered agent using an Illinois business address. Your address becomes public record, and someone must be there during business hours to accept legal papers.
Can I use a PO box for my Illinois LLC?
Not as your registered agent's address. Your registered agent needs a physical Illinois street address, a P.O. box alone is not accepted, and can be an individual or an authorized business entity. A PO box can usually serve as a mailing address, but the registered agent needs a physical address in Illinois.
How do I change my registered agent in Illinois?
File the Statement of Change of Registered Agent and/or Registered Office (Form LLC-1.36/1.37) with the Illinois Secretary of State. The fee is $25.
How much does a registered agent cost in Illinois?
Serving as your own Illinois registered agent is free if you qualify. Commercial registered agents charge a yearly fee. LLC Register's Illinois registered agent service is $99 a year and includes LLC formation and annual report filing.
Does Illinois require an annual report for LLCs?
Yes. Illinois LLCs must file the Annual Report every year. The state fee is $75.
When is the Illinois LLC annual report due?
The Annual Report is due before the first day of your LLC's anniversary month every year. Your first one is due before the first day of your LLC's anniversary month in the year after formation. It is filed with the Illinois Secretary of State.
How much is the Illinois LLC annual report fee?
Per the Illinois Secretary of State, as of September 2026, the Annual Report state fee is $75. It is due before the first day of your LLC's anniversary month every year. LLC Register files it for you at no extra service fee while your registered agent service is active.
What happens if I miss the Illinois annual report deadline?
A report filed more than 60 days after its due date adds a $100 late penalty, and the state can eventually dissolve your LLC administratively. File as soon as possible to keep your LLC in good standing.
Does Illinois have a franchise tax for LLCs?
Illinois has no separate franchise tax, but a multi-member LLC taxed as a partnership pays a 1.5% Personal Property Replacement Tax on its Illinois net income, on top of members' individual income tax.
How are LLCs taxed in Illinois?
Illinois taxes individual income at a flat 4.95% rate, so a default pass-through LLC's profits are taxed once on the members' Illinois returns. A multi-member LLC also owes the 1.5% Personal Property Replacement Tax, and an LLC taxed as a C corporation instead pays the 7% corporate income tax plus a 2.5% replacement tax. Federally, a single-member LLC is taxed like a sole proprietorship and a multi-member LLC like a partnership, unless it elects to be taxed as a corporation.
Do I need a sales tax permit for my Illinois LLC?
If you sell taxable goods or services, register for a Certificate of Registration with the Illinois Department of Revenue through MyTax Illinois.
How do I register my Illinois LLC as an employer?
Before you hire, register with the Illinois Department of Employment Security for unemployment insurance, and with the Department of Revenue for income tax withholding. You also need an EIN from the IRS before you run payroll.
Do I need a business license for my Illinois LLC?
It depends on your industry and location: Illinois regulates some professions and activities through state licenses, and many cities and counties require local business licenses. Start with the Illinois Department of Commerce & Economic Opportunity.
Do I need an operating agreement for an Illinois LLC?
Illinois does not require an operating agreement, and you never file one with the state. LLC Register includes an operating agreement with every Illinois LLC it forms.
Do I need an EIN for my Illinois LLC?
You need an EIN if your LLC has employees or more than one member, and most banks ask for one to open a business account. A single-member LLC without employees can use the owner's Social Security number for federal taxes, but an EIN keeps it off business paperwork.
How do I get an EIN for an Illinois LLC?
Apply for free on the IRS website once the state has approved your LLC; online applicants receive the EIN immediately. Owners without a Social Security number can apply with Form SS-4 by fax or mail.
Can a nonresident form an LLC in Illinois?
Yes. You do not have to live in Illinois or be a U.S. citizen to form an Illinois LLC. You do need a registered agent with a physical address in Illinois. Non-U.S. owners without a Social Security number apply for an EIN with IRS Form SS-4.
Can I form a single-member LLC in Illinois?
Yes. Illinois allows an LLC with a single owner. By default the IRS taxes a single-member LLC like a sole proprietorship, reported on the owner's personal return.
Does Illinois allow series LLCs?
Yes. Illinois allows series LLCs: the initial Articles of Organization cost $400, and each additional series is registered with a $50 Certificate of Designation.
Can licensed professionals form a PLLC in Illinois?
Yes. Licensed professionals form a professional LLC under Illinois's Professional Limited Liability Company Act (805 ILCS 185) rather than the standard LLC Act.
Does Illinois require LLCs to publish a formation notice?
No. Illinois does not require newspaper publication to form an LLC.
How do I get a certificate of good standing in Illinois?
Order a Certificate of Good Standing from the Illinois Secretary of State for $25. Banks, lenders and other states often ask for one as proof your LLC is current with the state.
How do I register a foreign LLC in Illinois?
An LLC formed in another state registers to do business in Illinois by filing the Application for Admission to Transact Business (Form LLC-45.5) with the Illinois Secretary of State. The fee is $150, and the LLC needs an Illinois registered agent. A foreign series LLC registers with a separate $400 application instead of the standard $150 foreign LLC fee.
How do I amend my Illinois LLC?
File the Articles of Amendment (Form LLC-5.25) with the Illinois Secretary of State for $50. Amend when you change your LLC's name or other information in the formation document.
How do I dissolve an LLC in Illinois?
File the Statement of Termination (Form LLC-35.15) with the Illinois Secretary of State for $5. Before you file, wind up the business: pay debts, close tax accounts and distribute what is left to the members.
How do I file a DBA for my Illinois LLC?
File an Application to Adopt an Assumed Name with the Illinois Secretary of State; the fee is prorated on a 5-year calendar cycle and runs from about $30 to $150 depending on the year you file. A DBA lets your LLC trade under another name without forming a new company.
Can my Illinois LLC be taxed as an S corporation?
Yes. An eligible LLC can elect S corporation tax status by filing IRS Form 2553. The election can reduce self-employment tax once profits are high enough to pay yourself a reasonable salary. Illinois taxes individual income at a flat 4.95% rate, so a default pass-through LLC's profits are taxed once on the members' Illinois returns. A multi-member LLC also owes the 1.5% Personal Property Replacement Tax, and an LLC taxed as a C corporation instead pays the 7% corporate income tax plus a 2.5% replacement tax.
What are the benefits of forming an LLC in Illinois?
An LLC separates your personal assets from business debts and lawsuits, keeps pass-through taxation, and needs less paperwork than a corporation. In Illinois it costs $150 to form and the Annual Report is $75 every year.
LLC vs sole proprietorship in Illinois: which is better?
A sole proprietorship costs nothing to start, but you are personally liable for the business's debts. An Illinois LLC costs $150 to form and protects your personal assets, with the same pass-through taxes by default.
Should I form my LLC in Delaware or Wyoming instead of Illinois?
Usually not if your business operates in Illinois. An out-of-state LLC doing business here must also register as a foreign LLC in Illinois for $150 and keep an Illinois registered agent, so you pay two states' fees.
Does LLC Register charge a separate fee to form an Illinois LLC?
No. Formation is included in the $99-a-year Illinois registered agent service. The state still charges its $150 filing fee, which we pass through at cost.
What does LLC Register include with an Illinois LLC?
For $99 a year plus the $150 state fee: Illinois LLC formation in year one, an Illinois registered agent, an operating agreement, and filing of your Annual Report every year. Renewal is $99 a year. State fees are passed through at cost.
Does my Illinois LLC need to file a BOI report with FinCEN?
No. FinCEN has exempted companies created in the United States from beneficial ownership information (BOI) reporting. Only foreign companies registered to do business in a U.S. state still have to report.
Which state agency handles LLC filings in Illinois?
The Illinois Secretary of State, Department of Business Services, Limited Liability Division, handles LLC formations, amendments and annual filings. Its office is at 501 S. Second St., Rm. 351, Springfield, IL 62756.
Do I need a separate bank account for my Illinois LLC?
Yes, you should. Mixing business and personal money can weaken the liability protection your LLC gives you. Banks usually ask for your filed Articles of Organization, your EIN and your operating agreement.
Complete Illinois LLC Glossary
The terms, documents and filings you will meet when forming an Illinois LLC.
Annual report
A recurring filing that keeps your LLC in good standing with the state. In Illinois it is the Annual Report, due before the first day of your LLC's anniversary month every year.
Articles of Organization
The document filed with the state to create an LLC. Some states call it a Certificate of Formation; in Illinois it is the Articles of Organization.
Assumed name (DBA)
A trade name your LLC uses instead of its legal name. In Illinois you file a Application to Adopt, Change, or Cancel an Assumed Name (Form LLC-1.20).
Banking resolution
A document authorizing who may open and run the LLC's bank accounts.
Certificate of good standing
Proof from the state that your LLC exists and is current on its filings and fees. In Illinois it is the Certificate of Good Standing.
Dissolution
Formally closing an LLC with the state. In Illinois you file the Statement of Termination (Form LLC-35.15).
EIN
Employer Identification Number: the nine-digit federal tax ID the IRS issues to a business.
Foreign qualification
Registering an LLC formed in another state so it can do business in Illinois, through the Application for Admission to Transact Business (Form LLC-45.5).
Franchise tax
A state tax some states charge for the privilege of doing business there. Illinois has no separate franchise tax, but a multi-member LLC taxed as a partnership pays a 1.5% Personal Property Replacement Tax on its Illinois net income, on top of members' individual income tax.
Illinois Limited Liability Company Act, 805 ILCS 180
The Illinois law that governs how LLCs are formed, run and dissolved.
Limited liability
The legal protection that keeps the owners' personal assets separate from the LLC's debts and lawsuits.
Manager-managed LLC
An LLC run by appointed managers rather than by all of its members.
Member
An owner of an LLC. An LLC can have one member or many, and members can be people or companies.
Member-managed LLC
An LLC run directly by its owners, the members.
Operating agreement
The internal contract that sets out an LLC's ownership, voting, profits and what happens when a member leaves.
Pass-through taxation
The default federal tax treatment of an LLC: profits pass to the owners' personal returns instead of being taxed at the company level.
Professional LLC (PLLC)
An LLC for licensed professionals such as doctors, lawyers or accountants. Available in Illinois.
Registered agent
The person or company with a physical Illinois address named to receive legal papers and state mail for the LLC.
S corporation election
A federal tax election, made on IRS Form 2553, that lets an eligible LLC be taxed as an S corporation.
Series LLC
An LLC divided into separate series, each with its own assets and liabilities. Allowed in Illinois.
Single-member LLC
An LLC with one owner. By default the IRS taxes it like a sole proprietorship.
