Overview of LLC Operating Agreement in Illinois
An LLC operating agreement is highly advisable in Illinois as it establishes the rights, duties, and obligations of the members. Even a Single-member LLC is recommended to have one.
Key Components of an Illinois LLC Operating Agreement
- Company’s name, statement of purpose
- Ownership structure, management structure
- Financial provisions, dissolution provisions
- Dispute resolution procedures
Importance of an Operating Agreement
- Protects members from liability
- Clarifies business plans and member agreements
- Customizes business operations
- Shows professionalism and legitimacy
How to Modify an Illinois LLC Operating Agreement
An Illinois LLC Operating Agreement can be changed through an amendment process outlined or by written agreement of all members.
Requirements and Benefits
- State of Illinois does not require but encourages Operating Agreements
- Should detail compliance, responsibilities, financial procedures, and conflict resolution
- Benefits include protecting the LLC and showing legitimacy
Filing and Notarization
Operating Agreements do not need to be filed or accepted by the state. Notarization is generally not required.
Starting an LLC in Illinois
The main cost involved is the $150 fee to file the LLC Articles of Association online with the Secretary of State of Illinois.