Welcome to the community, Melissa! Hopefully, some other members will jump in to provide some additional insight, but in the meantime, I thought the article below might help get you started.
First go to your state website and follow instructions to form a LLC, then after you secure the trade name in that form of business, then you apply to the IRS for the EIN number for the new LLC.
Most of the time there is no monthly fee for a LLC, but you might be required to have an official meeting one per year, where 'minutes' are recorded.
An LLC limits the individual liability of the owners of the firm. There are conversion forms available at the Illinois state web site for becoming an LLC from a partnership. Insurance rates are generally less expensive for an LLC but loans are generally more difficult to obtain.
Registration is at the State level for documenting your incorporation, but you must also register at the IRS. I suggest Subchapter "S" (disregarded entity in IRS parlance) so the revenue and the expenses flow through to the individual tax returns of the owners and you pay not taxes as a company except for state sales tax.
An operating agreement is advisable as well. You can download a sample operating agreement from the "References" BOX in the right margin of the site linked below:
We have a general partnership in a retail pro shop with 2 additional partners. We have been in business for over 10 years, serving our local bowling community and have recently decided to research LLC options.
We are trying to determine if an LLC is the right option for us. We usually do about $80K a year in sales and pay Sales tax quarterly.
What are the pros and cons of going from a general partnership to an LLC? What needs to be done to become an LLC? Is the LLC at a state level or Federal level? Are there monthly fees?
Can anyone guide me to a good website so I can research or provide any additional useful information?
Our business is in Illinois :-)