Importance of Operating Agreement for Illinois LLC
An operating agreement outlines LLC ownership and operations. It details business management, member roles and responsibilities, and decision procedures. An operating agreement is essentially a roadmap ensuring everyone understands rights and obligations.
Creating an Illinois LLC
- Choose a name
- Appoint a registered agent
- Check if a business license is needed
- File articles of organization
- Draft an operating agreement
- Comply with employer obligations
Key Points Regarding Operating Agreement
- Single-member LLCs are not required to have an agreement registered with the Secretary of State. However, this document is essential for daily operations, so professionals strongly advise against operating an LLC without it.
- The state does not require submitting this document. However, it is recommended for all companies.
- An operating agreement is a contract between LLC members governing operations and management. It sets forth rights, duties, rules for conducting business, etc. This is important so everyone understands their role and how the LLC will run. It can also help prevent disagreements.
Additional Notes
- Forming an Illinois LLC can be difficult, especially for first-time owners. With help, your LLC will be formed and you’ll get guidance beyond formation so you don’t have to wonder what to do next.
- DBAs allow businesses to operate under an assumed name, referred to as a fictitious business name. A DBA authorizes a business to operate under an assumed name.