Obtaining Annual Reports and Business Compliance in Illinois
To get a copy of your annual report in Illinois, you will need to contact the Illinois Secretary of State’s office. You can request a copy of your report online or by mail. To ensure your Limited Partnership remains in compliance with Illinois tax laws, you must register your business with the Illinois Department of Revenue.
Types of Business Entities: LP and LLC
With a limited partnership (LP), there is at least one general partner and one limited partner. A limited partner does not have managerial responsibilities, and their liability is limited to the amount invested in the partnership.
Is Ltd better than LLC?
Understanding the Limited Liability Company Act in Illinois
The law governing LLCs in Illinois is the Limited Liability Company Act (ILCS 180/1-40). An LLC, or limited liability company, combines liability protection with pass-through taxation. In Illinois, an LLC is formed by submitting Articles of Organization to the Secretary of State.
The Act provides rules for the formation, organization, governance, dissolution, and winding up of LLCs. With an LLC, owners, called members, enjoy protection from personal liability for company debts, as profits and losses pass through to their tax returns.
Recent updates to the Illinois LLC Act include:
- Recognizing oral and implied operating agreements
- Requiring members to be designated as agents to bind the LLC
- Allowing conversions between LLCs and other entity types
- Eliminating mandatory purchase of a dissociated member’s interest
- Updating creditors’ rights
The LLC is favorable for start-ups due to liability protection and potential tax savings. You can learn to form an LLC in Illinois with online resources from the Illinois Secretary of State and ensure smooth registration.