LLC Operating Agreement (template + instructions)
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Next Step
After you’ve completed and signed your Illinois LLC’s Operating Agreement, you can then proceed to the next Lesson: Tax ID Number (EIN).
Founder & Educator, LLC University®
Matt Horwitz has been the leading expert on LLC education for the past decade. He founded LLC University in 2010 after realizing people needed simple and actionable instructions to start an LLC that other companies weren't offering. He's cited by Entrepreneur Magazine, Yahoo Finance, and the US Chamber of Commerce, and was featured by CNBC and InventRight.
Matt holds a Bachelor's Degree in business from Drexel University with a concentration in business law. He performs extensive research and analysis to convert state laws into simple instructions anyone can follow to form their LLC - all for free! Read more about Matt Horwitz and LLC University.
Matt holds a Bachelor's Degree in business from Drexel University with a concentration in business law. He performs extensive research and analysis to convert state laws into simple instructions anyone can follow to form their LLC - all for free! Read more about Matt Horwitz and LLC University.
ILLINOIS LLC GUIDE
Follow the lessons below to form your Illinois LLC.
Thank you Matt for Thisbe very helpful tool. Please can you assist me with the formatting as it does not allow me to add a space between words or correct a typing error.
Please advise and thank you,
Peggy
Hi Peggy, this is likely due to your version of Adobe Reader or Microsoft Word. We can’t assist in troubleshooting this as the issue is just on your side. We recommend downloading the Operating Agreement in the other format (either PDF or .doc). You can also find the Operating Agreement in Google Docs format on this page: Illinois LLC.
Hi Matt,
I formed a single member LLC in Illinois a couple weeks ago. I’m now thinking I should have my husband’s name on there somewhere. Can I put him as a ‘member’ in the operating agreement or is there somewhere I can add him in in some capacity in writing or do I have to dissolve this LLC and create a new one? Thanks!
Hi Mary, you don’t have to dissolve this LLC and form a new one (although sometimes that filing is easier). Here is the overview of adding an LLC Member: prepare Assignment of Membership Interest Agreement, amend Operating Agreement, amend Articles of Organization (if applicable, meaning if Member(s) are listed), notify IRS if change in tax classification (in your case, LLC is going from Sole Proprietorship taxation to Partnership taxation), update state Department of Revenue, and update bank. Hope that helps.
How to form a PLLC in Illinois? Do I need to use different format?
Hi Sam, the filing is similar, but slightly different. You’ll use the same Articles of Organization (Form LLC-5.5). There are two notes at the bottom of the Articles of Organization that pertain to licensed professionals. We don’t have PLLC instructions at this time, but we recommend calling the Secretary of State. You may want to look in having an Operating Agreement created by an attorney, especially if there are other members in the LLC. Hope that helps.
Matt, Thank you !
This is very helpful !
Sam
This operating agreement was so helpful!! My goodness! I didn’t even know we needed this. It is another very helpful bit a information I’m learning along this new path. Thanks so much!
Hi Deborah, you are very welcome! We’re happy to be so helpful :)
Hello, Matt — I am a sole proprietor who just filed to become a single-member LLC in Illinois. I came across your site, because I am looking for examples of incorporating the concept of a “springing member” in order to designate my sister to take over the management upon my death. I know Illinois allows this in the LLC statute, but I don’t know how to approach this within the operating agreement. Do you have any suggestions on verbiage I can present to my attorneys?
Hi Cee, congratulations on your new LLC! We don’t have any sample verbiage on Springing Members at this time. However, we recommend speaking with an estate planning attorney or a business attorney for assistance. Thank you for your understanding.