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How to Reinstate an LLC in Illinois

Having an LLC in Illinois offers several benefits for business owners. Illinois, as a state with a diverse and robust economy, provides ample opportunities for newer entrepreneurs and established businesses alike. Some of the advantages of running a business in Illinois include access to a large and educated workforce, a strategic geographical location, and a strong market presence. However, it’s crucial for business owners to recognize that maintaining their LLCs in good standing is vital. Adhering to state regulations is essential to prevent the administrative dissolution of the LLC by the state. If an Illinois LLC falls out of compliance, it can be administratively dissolved or revoked, leading to the loss of legal protections and potentially costly and time-consuming reinstatement processes. Staying compliant with Illinois state regulations not only safeguards your business but also allows you to focus on growth and success without the burdensome consequences of non-compliance. Therefore, it is crucial for business owners in Illinois to prioritize regulatory compliance to ensure the longevity and stability of their LLCs in this thriving business environment.

If you find yourself in the unfortunate situation where your Illinois LLC has been administratively dissolved or revoked, fear not, as there is a straightforward process to reinstate it. Below, we provide an in-depth guide on how to reinstate an LLC in Illinois, offering valuable insights and elaborating on the steps involved.

Steps to Reinstating Your LLC in Illinois

1. Understand the Reason for Dissolution

Before embarking on the journey to reinstate your Illinois LLC, it is crucial to ascertain the reason behind its dissolution. In Illinois, the law distinguishes between two primary categories: administratively dissolved and voluntarily dissolved LLCs. It is important to note that you can only reinstate an LLC that was dissolved administratively. Voluntarily dissolved LLCs are not eligible for reinstatement. Therefore, a careful examination of the circumstances that led to the dissolution is essential.

Here are some common reasons why an LLC may face involuntary dissolution in Illinois:

  • Failure to pay franchise taxes within a specified period of time after they were due
  • Failure to deliver an annual report within a specified period of time of the due date
  • Failure to maintain a designated registered agent or registered office for a specified period of time
  • Inadvertent administrative dissolution due to oversight or misunderstanding of tax requirements

It is important to note that if an LLC is voluntarily dissolved, it cannot be reinstated. In that case, the only option is to start over with a new LLC.

2. File for Articles of Reinstatement

To initiate the reinstatement process, you must submit the necessary paperwork in the form of articles of reinstatement. These documents contain vital information required by state authorities to reactivate your LLC. In Illinois, you will need to complete Form LLC-35.40, also known as the Reinstatement Following Administrative Dissolution form. The convenience of filing this form is that it can be done either electronically or through traditional mail.

3. Fulfill the Required Fees

The reinstatement process in Illinois offers flexibility in terms of how you can file, whether online, by mail, or in person at the Secretary of State’s Department of Business Services. Payment options, however, differ according to the method chosen. If you opt for the mail or in-person filing, certified checks, Illinois attorney’s checks, or money orders made payable to the Secretary of State are acceptable forms of payment. On the other hand, online filings permit credit card payments.

4. Settle All Outstanding Annual Reports and Fees

Completing the reinstatement process involves more than just the submission of articles of reinstatement and payment of fees. You are also required to clear any outstanding annual reports and associated fees. These can accumulate for up to six years, making it imperative to address them to successfully reinstate your LLC. The fees for reinstating an involuntarily dissolved LLC in Illinois typically include a $200 fee for the reinstatement application, a $75 fee for the annual report, and any additional fees for late filings or penalties.

5. Await Approval

After meticulously following the necessary steps, the final stage of reinstating your LLC is to patiently await approval from the Secretary of State’s office. It’s important to note that this approval process can take several weeks, so it’s essential to exercise patience during this period.

Why It Is Important to Promptly Reinstate Your LLC in Illinois If It Has Been Dissolved

Promptly reinstating an LLC in Illinois is important for several reasons, including the following:

Limited liability protection: Reinstating your LLC provides limited liability protection, which helps keep your personal assets safe. Even if your business owes money to other entities, in most cases, they cannot come after your personal home or car. LLC reinstatement also allows you to continue operating your business within the bounds of the law. You can still access the same customer pool as before and continue to leverage your brand capital and unique selling proposition.

Avoiding legal issues: If your LLC has been administratively dissolved, you may face legal issues if you continue to operate your business without reinstating it. You may be subject to fines, penalties, and other legal consequences. Reinstating your LLC can help you avoid these issues and ensure that you are operating your business legally.

Maintaining business relationships: If your LLC has been dissolved, you may lose business relationships with vendors, suppliers, and customers. Reinstating your LLC can help you maintain these relationships and continue doing business with the same partners, upholding the integrity of your business.

Resuming business operations: Reinstating your LLC allows you to resume business operations and continue generating revenue. This can be especially important if your business is your primary source of income.

Avoiding the need to start a new LLC: Starting a new LLC requires more time and money than reinstating an old one. If you start a new LLC, you will need to file new articles of organization, obtain a new EIN, and transfer all assets and liabilities to the new entity. You will also need to re-establish your brand and customer base. Reinstating your LLC can help you avoid these costs and continue operating your business under the same name and brand.

In conclusion, promptly reinstating an LLC in Illinois is important for maintaining limited liability protection, avoiding legal issues, maintaining business relationships, resuming business operations, and avoiding the need to start a new LLC.

Conclusion

Reinstating an LLC in Illinois is a straightforward process, provided you follow the necessary steps diligently. These steps encompass filing articles of reinstatement, settling the requisite fees, and addressing all outstanding annual reports and associated fees. It’s essential to exercise patience as the approval process may take several weeks. Reinstating your LLC not only safeguards your limited liability protection but also allows you to continue deriving value from your business. However, in cases where your old business model and brand are no longer viable, the option of starting a new LLC may be more viable, albeit requiring more time and resources. In such instances, you would need to initiate the process of forming a new LLC, transferring assets and liabilities, and re-establishing your brand and customer base.

How Can DoMyLLC.com Help Business Owners Reinstate Their Illinois-based LLCs

At DoMyLLC.com, we understand the challenges that business owners face when it comes to reinstating their Illinois-based LLCs. We pride ourselves on offering comprehensive assistance to streamline the reinstatement process. Here are some ways in which our team at DoMyLLC.com can be of service:

Dedicated Support and Personalized Service: When you choose DoMyLLC.com, you gain access to our dedicated support team and personalized service. We recognize that reinstating an LLC can be a complex and overwhelming task, especially for those who are navigating this situation for the first time. That’s why we’re here to guide you every step of the way, ensuring that you receive the individualized attention and assistance you need.

Expertise in Illinois Reinstatement Process: Our team at DoMyLLC.com comprises experts who possess in-depth knowledge of the Illinois reinstatement process. We have a thorough understanding of the intricacies involved, and we leverage this expertise to provide you with precise guidance and assistance. With our assistance, you can have confidence that the reinstatement process will be completed correctly and efficiently.

Quick and Easy Filing: At DoMyLLC.com, we prioritize convenience. We offer quick and easy filing options for Illinois LLC reinstatement. Whether you prefer electronic filing or traditional mail, we are equipped to assist you with both options. Our goal is to simplify the process, making it as hassle-free as possible for you.

Compliance Services: Staying in good standing with the state of Illinois is paramount, and at DoMyLLC.com, we offer comprehensive compliance services to address your needs. Our services encompass handling Illinois annual reports, providing registered agent services, and assisting with various compliance requirements. We understand the importance of meeting these obligations to maintain the integrity of your LLC.

When you choose DoMyLLC.com, you are selecting a partner dedicated to helping business owners reinstate their Illinois-based LLCs efficiently and effectively. We provide exceptional customer support and personalized service, expertise in the Illinois reinstatement process, quick and easy filing options, and a range of compliance services to ensure your LLC remains in good standing. Let us simplify the reinstatement process for you, allowing you to focus on what matters most—your business.