Note: Illinois LLC fees have been reduced. The due date of the annual report is the first day of the month your LLC was formed or approved. The information provided in the annual report helps the State officials to ensure that all the companies pay taxes. This will ensure your company is allowed to operate uninterrupted and with no legal penalties. The State of Illinois, like almost every other state, taxes corporation income. For example, if you filed articles of organization for your LLC on July 15, your annual report would be due on June 30 the following year and each year after that. I sent in the form with the fee to dissolve my business and they returned it all along with the request for the annual report. LLC University is a Benefit Company. An experienced agent is required for: You can read more about an Illinois Registered Agent here. Only corporations listed in good standing can make these changes. However, theres also something to be said for things already being done. And then open new LLC in near future when needed. There is no penalty for missing your annual report deadline right away. Your email address will not be published. 1. Likewise, another reason for this is to avoid the dissolution of your LLC company. (Simple Guide). State fee for standard turn-around. Our pricing clearly shows the state fee to form an LLC in Illinois with standard turn-around. Not filing your companys LLC annual Report in Illinois will result in the administrative dissolution of your company by the State of Illinois. Cureently my llc is involuntary dissolved, but Im in middle of sale of property in IL & quite dissapointed wasnt informed by prior Attorney disadvantages is cant apply Home Exemption to lower taxes, yet held it nearly 2yrs ! Anyhoo at this point , Im told I can reinstate ($575 incl 2 annual report + $100 expedite fee = 675), or not reinstate & deed in name after sale. You may file an LLC annual report up to 45 days before the due date. Corporations will also have an additional franchise tax to pay which is a minimum of $25. After being late 120 days, the Corporation will be administratively dissolved. If you do not pay your fees by the due date, your business can be fined or dissolved by the Illinois Secretary of State. Every Illinois LLC must file an annual report and pay a filing fee. Here are the steps to file annual reports in Illinois. I recommend calling the Secretary of State again to clarify. 1)$99- record book keeping,Ownership Certificates and Seal. Therefore, next year in 2024, your LLCs Annual Report is due before June 1st 2024. Illinois Limited Worker Cooperative Association Act Statement of Change of Registered Agent and/or Registered Office. Often activities such as having a physical presence (a business location) in a state, hiring employees in a state, or soliciting business in a state (such as by telephone, print ads, mail, or the Internet) will be considered doing business for registration purposes. If you receive a notification, its crucial that you respond quickly and address any errors in order to avoid penalties. The knowledge & proficiency of the registered agent allows the smooth filing of reports & other fees. Making sure you comply with this requirement is essential to avoid penalties or the dissolution of your company. Your Illinois LLC Annual Report has been successfully filed online. In addition, filing by the deadline will prevent your LLC or corporation from accumulating penalties and interest. Any business that is legally registered with the state of Illinois must file this report, which includes detailed information about your business. Failing to file an annual report as required by Illinois law can have serious repercussions for the LLC. If you need to change your Registered Agent, you must do so using a different form (Change of Registered Agent). 351, Springfield, IL 62756. Your registered agent will get a reminder and a physical copy of the Annual Report from the Illinois Secretary of State 45 days before it is due. The due date of the Annual Report is the first day of the companys anniversary month. You may file 60 days prior to the first day of the anniversary month. How should I go about dissolution correctly? Fill out all relevant fields on the form including the name of the LLC along with the name and address of the Illinois Registered Agent for the LLC. You can file the annual report online at the SOS website or by mail using Form LLC-50.1. Domestic Limited Liability Company Annual Report (. Due to this misconception, they either miss filing one or the other. When filing online, your Annual Report is processed right after payment is made. And lastly, do I need to do the DBA registration at the time of filing for LLC or after the LLC has been formed? If you will be doing business in states other than Illinois, you may need to register your LLC in some or all of those states. In fact, its recommended to set a reminder two months before your date of filing. Fill in the contact and payment information, and you are done. Box is not acceptable. This includes all the legal entities such as C Corporations, Limited Partnerships, Limited Liability Companies, bound to file the Annual Report. Names and addresses of members and/or managers: The annual report should identify the individuals or businesses with the authority to manage the LLCs operations. This includes LLCs formed under Illinois law and LLCs from other states that have registered with the Illinois Secretary of State. When it comes to income taxes, most LLCs are so-called pass-through tax entities. For typical LLCs (those not electing to be taxed as corporations) the tax is 1.5% of net income. To create a Series LLC in Illinois, you must submit Articles of Organization (Form LLC-5.5 (S)) to the Illinois Secretary of State. Why Do LLCs Have to File the Annual Report? They do not send anything back in the mail as a receipt. LLCs have the option of filing their Annual Report online or by mail. Illinois will not come after the fees if you form a new LLC. He founded LLC University in 2010 after realizing people needed simple and actionable instructions to start an LLC that other companies weren't offering. It is possible to file it 45 days before the deadline. Every LLC registered in Illinois must file an annual report. Failure to file a report by the deadline every year can result in significant penalties for your business. The Department of Commerce and Consumer Affairs notifies the businesses when the annual report filing is due. You have the option of filing your Corporation and LLC Annual Report online or by mail. 2. Identification Documents In many such scenarios, it is advised that an LLC appoints a Registered Agent to manage all this. Rules and regulations vary by location. Filing an annual report is a requirement for LLCs in Illinois, so its crucial that you take the time to accurately fill out the form and file with your state in a timely manner. Many states require this kind of report. Hire a company to form your LLC: Northwest ($39 + state fee) LegalZoom ($149 + state fee). Terry is a serial entrepreneur with over 25 years of experience building businesses across multiple industries construction, real estate, e-commerce, hotelier, and now digital media. A compliance service can monitor all of your companys annual compliance requirements. Your Illinois LLC Annual Report is due before the first day of your LLCs anniversary month. After being late 180 days, the Secretary of State administratively dissolves the entity. Illinois more specifically calls this a personal property replacement tax. You may visit our non-JavaScript, The State of Illinois has reduced many of the. An LLC Annual Report filed electronically will be considered an original filing even if an earlier paper version was submitted and then returned by the Secretary of State for revisions. Filing an annual report is mandatory to keep your business in compliance with Illinois law. If you file your Annual Report online, youll be able to save and print a confirmation page. One reason for filing a reinstatement is that your LLC faced dissolution due to non-filing of the annual Report or paying taxes. All rights reserved. How to Start a Corporation Form a Corporation. This includes: Filling out the form itself takes only a few minutes, as all of this information is already listed in your Articles of Organization. It also identifies the individuals or businesses that are responsible for managing the business. Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. How To Start A Business In West Virginia [2023 Guide], How To Start A Business In New York [2023]. The Illinois Legislature reduced most of the Secretary of States filing fees several years ago from $250 to its current price of $75. Download the Illinois Annual Report Form (Form LLC-50.1): Illinois Annual Report Form (Form LLC-50.1). You need to provide the file number of your LLC. Filing Annual Report is an important step in maintaining your Limited Liability Company's good standing within Illinois. Yes! This is paid once per year for the life of your LLC. Please consult a licensed professional if you have legal or tax questions. Enter the number on the box and click on continue. Contact information of the Registered Agent, Name and address of the members, managers, directors, officers, Changes in authorized shares, issued shares, and/or paid-in capital. The registered agent and/or registered office cannot be changed through a report filed online. Venture Smarter shares business tactics that help entrepreneurs stay ahead of the competition, maximize their capital and avoid common traps and downfalls. This may consist of members, managers, or a combination of both. Where can I find my Illinois LLC's anniversary date? Personal checks are accepted. In Illinois, the corporation income tax rate is a flat 5.25% of federal taxable income with adjustments. Jon Morgan is the CEO, Co-Founder, and Editor-in-Chief of Venture Smarter, a leading consulting firm that helps startups scale and grows. This way, all of your paperwork will be done in advance for the next time around! However, instead of waiting until your anniversary month to file, we recommend filing as early as possible in order to avoid a potential $100 penalty (discussed in more detail below). LLC business name: This is the official legal name of the business. Yes, the fees may vary depending on the type of entity or the type of legal entity you are representing. Enter the name of your LLC. The state also allows for the submission through mail. Nothing needs to be entered here. How long does it take the state to process the filing? 1. After you file your report, you will receive a notification of any errors or omissions, or confirmation that your report has been filed. This is paid once per year for the life of your LLC. Then click Continue. File the annual report online: Filing online is the simplest way. Illinois is very strict about it. If payment is ultimately denied, the Annual Report filing is void and company is placed in delinquent status. You can register online or mail in Form REG-1. If you need an official receipt, you must also send two copies of the Annual Report and a self-addressed stamped envelope. Payment must be made using Visa, MasterCard, Discover or American Express credit card. The penalties for not filing an annual report are typically as follows: After failing to file your LLC annual report on time, the state will write to you and may impose a late filing penalty that you must pay in addition to your regular annual report filing cost. Save my name, email, and website in this browser for the next time I comment. Can I ask which company is telling you this? The LLC Annual Report late penalty is now $100. Whether you're required to register will depend on the specific states involved: each state has its own rules for what constitutes doing business and whether registration is necessary. Section 50-15 of the Illinois Limited Liability Company Act, Illinois does not go quite this far, although the effect is similar. Once filed with the state, your Articles of Organization officially create your Illinois . For example, if you formed your LLC on February 9th, the due date is January 31st. You may expedite for an additional $50, which guarantees 24-hour processing, but this can only be requested in person at the Springfield or Chicago offices. Were not sure how valuable that is to you or what other activities your LLC has done. You are responsible for making sure the filing went through. What Happens After I File my Illinois Annual Report. Hi Matt, you said that you went to file the Annual Report on the IRS website. Not include words or abbreviations that are reserved for other entity types, such as . You'll also need to periodically file Form IL-941. It cannot amend its Articles of Organization, for example, nor can it change its registered agent or registered office. Box, Names and business addresses of managers and/or members with management authority, Signature of an individual authorized to act on the LLCs behalf. As a business owner in Illinois, complying with the legal requirement of submitting an annual report is a necessary step in maintaining your limited liability status as an LLC. Enter Illinois on the first line and then enter the date your LLC was formed. You can file this change by mail or online. You must submit this form on time, or there may be consequences for failing to comply! You need to fill-up the form to proceed with the annual report filing. You will find instructions below for both the mail filing and the online filing. The due date for Illinois LLC annual report is on the last day of the month before the anniversary of your LLC's formation or admission to Illinois. This is done after the LLC is approved (not at the same time). Domestic and foreign corporations may file for reinstatement electronically. When you open the Illinois Secretary of State website, you will need to enter your LLC's file number. There is a $300 penalty if the LLC files the report 60 days late. How Long Does Illinois Annual Report Processing Take? You can search for your LLC Entity number through the link and look at the file number at the top. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Rules and regulations for starting a business change frequently. Ive researched & reminded of why I set it up for liability protections vs sole prop.,. The state will mail you back an approved copy of Annual Report. What states require newspaper publication? The Annual Report is used to confirm and update the companys information with the Illinois Secretary of State, such as the registered agent, address, and information of the officers, directors, members, or managers. Illinois requires all business entities to file an annual report each year. You can file the Assumed Name online (see Illinois Secretary of State: Adopting a Limited Liability Companys Assumed Name) or by mail (see Form LLC-1.20: Application to Adopt, Change, Cancel or Renew an Assumed Name). An Annual Report is one of the important documents filed by an LLC. Scroll down & choose Domestic or Foreign LLC in the type of corporations tabs. Tailor Brands is not a law firm, and none of the information on this website constitutes or is intended to convey legal advice. The state will process the Annual Report within 10 to 20 business days of the day it is received. There is a filing fee of $25 to make the change. You can find this date in your Articles of organization, and if you have an operating agreement, it will also list the anniversary date. The attorney listings on this site are paid attorney advertising. The filing fees for different corporation structures are as follows: There is no filing fee for Illinois LLPs. While your reports are due on the last day of the month before your LLC's anniversary month, Illinois will grant you an extra 60 days before penalizing you for the late fee. All Rights Reserved by Venture Smarter. You need to file your Annual Report in order to keep your Illinois LLC in compliance and in good standing with the Illinois Secretary of State. If you have questions, they can be contacted at 217-782-6961. An annual report service is the easiest way to help you file annual reports on time and avoid potential problems! He's cited by Entrepreneur Magazine, Yahoo Finance, and the US Chamber of Commerce, and was featured by CNBC and InventRight. This article has all the information about Illinois LLC Annual Report filing in Illinois. Processing is immediate when filing online or 10-15 business days when filing by mail. However, there are some reasons why states should file an LLC Annual Report. Hope that helps. A lack of good standing deprives an LLC of many rights and privileges, and could potentially deprive the LLCs members of liability protection. Hope that helps. August 2018 1 LLC 23.14 Type or print clearly. If you operate a business in Illinois, you may . Read more, How to File an LLC Annual Report in Illinois. Your cancelled check will serve as your receipt. For submission through the mail, you will download the form, complete it, and then mail it along with the check for payment to the address: Secretary of State Department of Business Services. You can find this date on your stamped and approved Articles of Organization or by searching your LLC name here and looking for the File Date. The Annual Report is due before the first day of the anniversary month of the LLC or Corporations formation. $50. StartingYourBusiness.com is here because of the many clients I worked with who made decisions based on inaccurate and outdated information. So glad our site was helpful :). (But note that federal employer tax obligations start with obtaining a federal employer identification number (EIN).) This article covers the most important ongoing reporting and state tax filing requirements for Illinois LLCs. , complete it, and then mail it along with the check for payment to the address: : Follow the instructions on the screen to find your LLC by inputting your LLC Entity number. Enter todays date. The form shows how to calculate the amount of the penalty. Many times, any creditor or other entity willing to transact with the LLC requires the correct correspondence address. Failure to file may result in your entity's legal status being revoked. This yearly report is a record of all the companys activities in an entire year. Online filings are instantly processed. If so, you'll need to pay employer taxes. The corporation may choose expedited service or routine service. Form LLC-1.36/1.37 Statement of Change of Registered Agent and/or Registered Office, Form BCA 5.10/5.20 Statement of Change of Registered Agent and/or Registered Office. Were not driven by profit, but rather by our mission to empower entrepreneurs. The Illinois Annual Report is filed with the Illinois Secretary of State. Matt Horwitz has been the leading expert on LLC education for the past decade. Before you file, make sure that you have these documents or information prepared. : Choose the member or manager that is submitting the LLC annual report, enter the name and title of the person that is submitting on behalf of the LLC, and then continue to the next step of making payment. Your LLC state reference number: You should have received a number from the Illinois Secretary of State when you formed the LLC or registered it as a foreign business entity. Make sure that you document every other transaction well. Use Form IL-1065 to pay the tax. But does IL come after the LLC for fees later or during setup of new one? (For others reading, please double-check with your state). Steve's enthusiasm for entrepreneurship makes LLCBuddy an essential and trustworthy resource for launching and running an LLC. If there is a question about starting a business or help finding a resource, I'm here to help! The State of Illinois requires you to file an annual report for your LLC. See the full disclaimer and privacy statement. If no changes are needed, select Yes and then click Continue. Also, this site is for informational purposes only and does not provide legal or tax advice. You can find an Illinois LLC anniversary date two ways: You can file your LLCs Annual Report 45 days before the 1st day of your LLCs anniversary month. The report indicates whether any information has changed since the previous year. Your Illinois LLCs first Annual Report isnt due until September 1st, 2020, so if you dissolve your LLC before then, your LLC doesnt need to file an Annual Report. Form LLC-50.1 August 2018 Illinois Limited Liability Company Act Annual Report Printed by authority of the State of Illinois. Then the name and address of your Illinois Registered Agent. This is a yearly expense, so make sure you include it in your budget. Your email address will not be published. However, if the LLC is unable to file the annual report, the Secretary of State has the right to dissolve the LLC. If you have any questions, you can contact the Illinois Secretary of State at 217-782-6961. LLC Annual Report Business Services The State of Illinois has reduced many of the Limited Liability Company (LLC) filing fees. Then a few minutes later you will receive an email from the state. Then, each quarter, use Form UI-3/40 to report on wages and pay the UI taxes. While it may be an additional cost, having a consultants hand can make filing a breeze.Taking the time to understand the Illinois annual report process and properly filling out your report will ensure that you can maintain your LLC status legally and compliantly. When choosing a name for your Illinois LLC, you'll need to follow the guidelines in 805 ILCS 180/1-10. 2017 2023 StartingYourBusiness.com All Rights Reserved. These taxes are handled through the Illinois Department of Employment Security (IDES). Prepare a check (personal checks are accepted) or money order for $75 and make payable to Secretary of State. You can file the annual report online at the SOS website or by mail using Form LLC-50.1. What if I Require Extra Time to Finish My Annual Report? You are very welcome Carlos! 1. While we do our best to keep this information fully up-to-date, its very difficult to stay on top of the changes for every state. 2501 CHATHAM RD SUITE R, SPRINGFIELD . It authenticates that the information provided to the Secretary Of the State is accurate & updated. Other benefits? The minimum franchise tax corporations need to pay is $25. 2. You can register for these taxes onlinethrough the IDES TaxNet website or by using Form UI-1. If youd like a more official receipt, send 2 copies of your Annual Report along with a self-addressed stamped envelope. Some of these taxes are paid to the federal government (the IRS) and are not covered here. For submission through the mail, you will download. & keeps those records intact for all future references. It is also referred to as the Annual Franchise Tax Report because it helps in filing the franchise tax. The Secretary of State will not accept any new filings as long as the LLC is out of compliance. Hi Renee, I havent run across this yet, so Im not 100% sure. The information provided on this site is not legal advice, does not constitute a lawyer referral service, and no attorney-client or confidential relationship is or will be formed by use of the site. Appreciated for confirming few things. Is there a filing fee for deleting a Manager of the LLC? This portion of our website is for informational purposes only.
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