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One can start an LLC through their state’s website, LLC formation services, or by hiring an attorney. The cost of an Illinois LLC depends on the method they use. Moreover, they want to ensure that their LLC is legitimate.
Mending legal loopholes one’s opponents might use to undermine their budding business is equally important to the Illinois LLC fees. This article provides information on how to get a good start and stop one’s competitors from damaging their business. If that sounds like a good deal, read carefully:
The Cost of Starting an Illinois LLC Through the State’s Website
We have good news: it only costs $150 to form an LLC through the Illinois Secretary of State website. Individuals can download, fill, and submit their LLC’s Articles of Organization from the privacy of their homes. These are some of the requirements business owners need to keep in mind:
- The company’s name must be unique and include “LLC”
- The company must have a genuine business address (not a P.O. box)
- Assign a registered agent to represent an LLC to the Secretary of State
- Mention all the management-level employees in the Articles of Organization file
Business owners must also submit an annual report every year with a $75 fee. Failure to do so might lead to the termination of their company. Thus, it’s one of the most essential Illinois LLC annual fees to consider.
The Cost of Starting an Illinois LLC Through LLC Formation Service
LLC formation services aim to simplify the process for a fee. Entrepreneurs use these services to help them navigate the complex process. They can help them slash the Illinois LLC cost by setting it up properly.
ZenBusiness is one of the most popular LLC formation services. The service will help business owners get a tax number with the IRS, a business bank account, and a registered agent. These services can help launch a business much faster than if one were to do these things themself. Plus, they provide valuable business tools to help individuals be in control of their business.
The price tag of companies like ZenBusiness is an annual subscription fee ranging between $39 and $249. Of course, they still charge the state fees on top of that, which adds to the overall Illinois LLC cost. However, some of the subscription fees at these services are tax-deductible.
LLC formation services help business owners patch the legal loopholes competitors might use against them. First, by assigning a qualified registered agent. Second, by helping them set up a business bank account. The simplification of paperwork and guidance through the corporate jungle is a godsend.
The Cost of Starting an Illinois LLC Through an Attorney
The third method of starting an LLC in Illinois is by hiring an attorney. If a business owner uses the services of an attorney, the cost of an Illinois LLC could be anywhere from $800 to $3000. That said, the investment is worth it if they have been in business for a while or operate in other states. If individuals are in a tight place with their businesses, an attorney might be the best option of all because they can better assess the situation. Thus, they can provide the best consultation.
Other Illinois LLC Fees Associated With Starting a Business
There are various other Illinois LLC fees associated with starting a business. For example, business size, activity, and location will all influence how much one will pay in taxes. However, business owners must register their businesses for taxes in the first place. Thus, associated registration fees are something else business owners might want to consider.
One will also need a business license to operate in their area. While they don’t need it on a state level, the laws might differ in their city or county. Furthermore, additional federal licenses and permits might be needed to run their business smoothly, which may add to their Illinois LLC annual fees.
Typical business expenses might also increase the startup costs. Business owners should consider the following costs: equipment, insurance, employee salaries, and more.
Some other fees might also apply, like the $25 fee for the application to reserve a business name. Business owners may also pay a fee if they change, cancel, or renew their registered agents.
F.A.Q.
Can one assign a friend as a registered agent?
Yes, but it’s not recommended. The registered agent or office plays a crucial role in the LLC. It’s the entity that connects one’s business with the state, and it’s responsible for filing reports and submitting paperwork on time. So, unless business owners can rely on their friends to take care of these crucial tasks, it’s better to have a legitimately registered agent.
Why do I need a business bank account?
An LLC limits one’s liability. So, if somebody sues their business, they can’t go after their private assets. Using a personal bank account is another loophole that competitors might use against someone. They can claim they’re not a legitimate business when using personal funds. However, if a business owner has a separate business bank account, competitors can’t attack their private assets.
Conclusion
There are three factors that determine the cost of an Illinois LLC. Firstly, one has to decide how exactly they want to form an LLC: through their state’s website, via LLC formation services, or by hiring an attorney. Weigh the pros and cons of each method, including how much each method might cost. For example, hiring an attorney can cost up to $3000. While it’s the most expensive method, it’s one of the most surefire ways to protect someone and their business.
Fees related to business name registration, labor, hiring a registered agent, etc., are additional costs to consider. Once a business is up and running, the initial costs will be a thing of the past as the business owner gains experience. In conclusion, planning and budgeting are crucial to taming startup costs.
Need help setting up an LLC in Illinois? Feel free to drop a comment below with questions and tips.
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