Illinois LLC Operating Agreement Templates

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An Illinois LLC operating agreement is a legal document used to set forth an outline of the company’s operational procedures and policies for all members to follow in a uniform fashion.

The State of Illinois does not require companies to file this document. It is, however, recommended that all businesses enter into this agreement. The document provides an important separation (and therefore, protection) of personal assets from the business. This is required, in order to keep the company from becoming vulnerable, in the event the business is faced with litigation or failure of the business. Placement of the document will also provide tax benefits. Without the completion of the document, the benefits would not be possible under current laws.

Each member should read the entire document, to be sure that they are clear with regard to the language of the document. If the members experience difficulty with the form, they may choose a consultation with a knowledgeable attorney for assistance.

Limited Liability Company Act – 805 ILCS 180

Operating Agreement Laws 805 ILCS 180/15-1

State Definition – 805 ILCS 180/1-5

By Type (2)


Multi-Member LLC Operating Agreement – For use by companies with more than one (1) member to assist in organizing a member-managed business by setting forth various regulations and policies.

Download: Adobe PDFMS Word (.docx)OpenDocument

 

 


Single-Member LLC Operating Agreement – For use by a single owner to establish daily business practices, procedures, and other important business aspects.

Download: Adobe PDFMS Word (.docx)OpenDocument

 

 


Table of Contents

How to Form an LLC in Illinois (5 steps)

To begin the LLC filing process, conduct a Search for Your Business Name in the Secretary of State’s official records to ensure that it is currently available for use. Otherwise, your application is likely to be rejected. Furthermore, the name must include the words Limited Liability Company or the abbreviation L.L.C./LLC.

Step 1 – Nominate a Registered Agent

State law in Illinois demands that each LLC nominates a Registered Agent to receive government notifications and service of process on behalf of the business. The agent can be an individual with legal residence in the State or a business with authorization to conduct business in the State.

Step 2 – Registration Documents

Select your LLC type from the options below and fill in the application that follows.

  • Domestic LLC – Articles of Organization
  • Foreign LLC – Application for Admission
    • Register-Mail

Filing Requirements:

  1. Print paper applications in duplicate
  2. Foreign applicants must include a Certificate of Existence issued within sixty (60) days of filing and authenticated by an officer in the initial jurisdiction

Step 3 – Filing Fee

The required filing fees are as follows:

  • Online – $600
  • Mail – $500

Online applications will be complete once the filing fee has been paid by credit card. If you are filing a paper application, attach a check or money order made payable to the ‘Secretary of State’ and send your filing package to the following address:

Department of Business Services, Limited Liability Division, 501 S. Second St., Rm. 351, Springfield, IL 62756

Step 4 – Operating Agreement

While an LLC operating agreement is entirely optional in Illinois, we highly recommend that one is implemented into your business structure as it can help organize your internal affairs. The agreement documents the rules and regulations for the business as well as any other provisions you’d like to establish.

Step 5 – Employer Identification Number (EIN)

The Employer Identification Number (EIN) is a nine-digit identifier that the Internal Revenue Service issues to business entities operating in the country. Specifically, the number is used to report tax information to the government. It is free to obtain an EIN Online or through the mail using Form SS-4.

(Video) How to Make an LLC Operating Agreement in Illinois