What is the Illinois LLC Act?

What is the Illinois LLC Act?

The Illinois Limited Liability Company Act is a state law that governs the formation, operation, and dissolution of limited liability companies (LLCs) in Illinois. The Act provides a framework for LLCs to operate within the state, outlining the rights and responsibilities of members, managers, and the company as a whole.

How is an LLC Formed in Illinois?

According to the Illinois LLC Act, an LLC can be formed by filing articles of organization with the Illinois Secretary of State. The articles must include the company name, purpose, management structure, and other essential details. The LLC must also have a registered agent with a physical address in Illinois.

What are the Management Structures for LLCs in Illinois?

The Illinois LLC Act allows for two types of management structures: member-managed and manager-managed. In a member-managed LLC, all members have equal decision-making authority, while in a manager-managed LLC, one or more managers are responsible for making decisions.

How Does Ownership Work in an Illinois LLC?

The Illinois LLC Act provides that LLCs are pass-through entities, meaning that the company itself is not subject to taxation. Instead, the company's income is passed through to the members, who report their share of income on their personal tax returns.

How Do You Dissolve an LLC in Illinois?

The Illinois LLC Act outlines the procedures for dissolving an LLC, including the filing of a certificate of cancellation with the Illinois Secretary of State. The LLC must also wind up its business affairs and distribute its assets to the members.

What Are Some Key Provisions of the Illinois LLC Act?

• The requirement for LLCs to have a registered agent with a physical address in Illinois.
• The need for LLCs to file annual reports with the Illinois Secretary of State.
• The provision for LLCs to have a management structure, either member-managed or manager-managed.
• The requirement for LLCs to maintain accurate records and make them available for inspection by members.

Conclusion

The Illinois Limited Liability Company Act is a comprehensive law that governs the formation, operation, and dissolution of LLCs in Illinois. By understanding the key provisions of the Act, LLCs can ensure compliance and operate successfully within the state.