LLCs in Illinois - Secretary of State

[Craig Sparling]

I've done one LLC in Illinois and it was easy: $75 to the state, one web form, draft up some routine procedural docs etc. Less than an hours work, everything online approved within a few days.

I recently decided to stretch myself a bit and start putting my holdings into series LLCs.  Filing the parent LLC was easy,  $400 to the state this time, everything online approved within a few days, but then I went to file my first series for a property.  According to the telephone operator it was snail mail only for Articles of Incorporation.  I mailed it overnight, I wait 10 days for them to look at it and say the signature wasn't filled in right, and only then when I called them.  Some operator takes some pity on me and says I can do some of this expedited and in person but only at Lake Zurich, Mount Prospect or Springfield walk in.  I make it to the facility 75 minutes before posted closing, and get sent down to the business desk by the greeter.  I wait for 10 minutes and then a security guard tells me it is closed at 4 PM as indicated by a printed sign....  I took a picture of the hours for my own reference and get chastised by the employee for taking a photo, which is "not allowed at government facilities"....

Enough of the rant,  fellow Illinoisans or else where any tips on how to work on government time while trying to hit closing deadlines.  Is everyone else filing the LLC far in advance and waiting for the right property to put in it?  I am guessing a few will say to have my lawyer do it, but the other LLC was so seamless that it seemed superfluous to have someone get involved.  Perhaps next time.

[Clint Coons]

Typically, I avoid using a series LLC in Illinois because each cell requires state registration. While this structure offers great asset protection benefits, it doesn't necessarily save money on filing fees or administrative costs. For this reason, I often recommend setting up separate LLCs for Illinois investments. Additionally, managing series LLCs can be challenging, especially when it comes to opening bank accounts or handling titles for individual cells, which can create unnecessary complexity.

I’m also a proponent of always having at least two “shelf” LLCs ready to go for deals so that you don’t run into delays or roadblocks when opportunities arise unexpectedly. Shelf LLCs are pre-established entities like you mentioned in your post.

However, if you prefer to avoid setting up shelf LLCs, using land trusts can be a simple and effective alternative. Land trusts can be established the day before closing and do not require state filing to create. In Illinois, my preference is to use land trusts with a separate LLC designated as the beneficiary. This structure combines efficiency with enhanced privacy and protection for your real estate investments.

Ultimately, there are plenty of ways to structure your investment real estate strategy, and the best approach often depends on your specific goals, the nature of the transaction, and your preferences for simplicity versus control