This research is supported by you, our readers, through our independently chosen links, which earn us a commission. Learn More
Whether one is thinking about branching their existing business or looking to start multiple ventures, a series LLC is a business owner’s best friend when taking care of legal matters. A series LLC acts as a master LLC. Imagine it like an umbrella to all the other LLCs. Every individual LLC under this master LLC is entirely independent, and this means that a lawsuit on one branch will not affect the others. Wondering how to form an Illinois series LLC? Read this article to find out more.
How to Form an Illinois Series LLC
Now that we’ve talked about what an LLC is let’s look into forming a series LLC in Illinois. While the general process for establishing an LLC is similar, each state has specific rules. In this section, we will go through each term in great detail.
Choosing a Name
Before one starts anything, they must decide on a name for their series LLC. Every state has different requirements and rules for naming the series LLC. In Illinois, a series LLC name must include “limited liability company.” Other than that, one should not name the LLC after any government agency. One should also avoid using restricted words, such as university or hospital.
If one has checked off these requirements from the list, it means that they have officially taken the first step towards forming an Illinois series LLC. Moreover, this is also a good time to reserve a domain name. If one plans on taking their business online, buying that domain name will make their business seem legitimate and coherent.
When one names a child series in an Illinois series LLC, they might consider using a distinguished name from its parent. According to the requirements, one must add the complete parent’s name, but they can always add more words. Business owners should also check for its availability and think of alternatives beforehand.
Choosing a Registered Agent
Businesses face ups and downs all the time. To take care of this, one needs a registered agent who can put their address up to receive legal notices. When one forms a series LLC, they need to have the same registered agent for every child. This registered agent will receive legal notices and documents on one’s behalf. According to the Illinois state rules, the registered agent must reside in Illinois. One can even designate themselves as a registered agent. However, we recommend that business owners sign up with a registered agent service and take a professional onboard.
Filing the Articles of Organization
Next, one needs to submit important documents required by the state of Illinois. To form a series LLC in Illinois, business owners need to submit the LLC.5.5(S) form. Along with that, one also needs to submit the certificate of designation for every child LLC. This is done after one has submitted the “Series Limited Liability Company Articles of Organization” form.
One can, of course, avoid all this paperwork by simply hiring an LLC formation service. They are professionals who take care of all the legal and technical works when forming a series LLC in Illinois.
Creating Operating Agreement
An operating agreement states all the necessary details about the LLC. From the ownership to the working, it has every detail listed in it. One can hire an attorney to do this since this document needs precision and deep knowledge on the subject. Moreover, the document should clearly state that each child LLC has limited liability protection. By stating this, one is giving them financial independence.
Obtaining an EIN
Like one’s ID, their business also needs one for all financial matters. An employer identification number (EIN) is used for tax purposes, hiring employees, and opening up bank accounts for the business. EIN is a nine-digit number that will appear on every finance-related business document.
Finalizing a Bank Account
Lastly, one needs to set up a business bank account to handle all the transactions and the taxes. It is never a good idea to use one’s personal account for their business. This is when one has to open a business bank account for LLC. Business owners should opt for a well-known and trusted account that provides convenience and quality services.
Why does one need an LLC for their business?
An LLC or a limited liability company provides limited liability to one’s company. This means that in case one’s business starts going downhill, nobody can claim anything from their personal assets. In simple terms, it protects one’s assets and separates them from the company’s. Moreover, it also provides flexibility and simplification regarding pass-through taxation.
How much does a series LLC in Illinois cost?
A series LLC in Illinois costs around $150 per form submission. Apart from this, one will need to pay $75 every year for maintenance. Business owners can check out our article about Illinois LLC cost to get an in-depth idea.
So, to wrap it up, if one plans on having a chain of businesses, forming a series LLC is a good idea. It provides each company limited liability protection and simplifies legal matters greatly. The process is relatively simple and budget-friendly as well.
Hopefully, this article has helped answer all popular queries. We also have many useful articles up on our website to guide one on setting up their LLC business. Additionally, we also review companies. Zenbusiness, for example, is one such company.
Have tips on how to form an Illinois series LLC? Drop them in the comments below.
Hours of Research