Illinois Guts LLC Protections in 2025
Personally, I would never open a Series LLC in the State of Illinois. The series is a link for plaintiff attorneys to look up every property in the series. Get sued on one get sued on all.
Recently the Illinois legislature gutted most of the protections that made an LLC a desirable entity choice in Illinois.
As of January 1, 2025, several new Illinois laws have come into effect, impacting Limited Liability Companies (LLCs) in various ways. Key changes include:
1. Personal Liability of LLC Members and Managers
Senate Bill 2765 amends the Illinois Limited Liability Company Act to clarify that certain provisions do not limit the personal liability of LLC members or managers. This change emphasizes that under specific circumstances, courts may "pierce the corporate veil," holding individuals personally accountable for the company's debts and obligations. ilga.gov
2. Pay Transparency Requirements
House Bill 3129 mandates that employers with 15 or more employees, including LLCs, must include pay scales and benefits information in all job postings. This measure aims to promote transparency and equity in compensation practices. icpas.org
3. Personnel Records Access
House Bill 3763 expands the Illinois Personnel Records Review Act, requiring employers to provide employees with access to a broader range of personnel records upon request. Employers must comply within specified timeframes, and non-compliance may result in penalties. icpas.org
4. Pay Stub Record-Keeping and Access
Senate Bill 3208 obligates employers to furnish employees with copies of their pay stubs within 21 calendar days of a request, up to twice in any 12-month period. This requirement applies even after an employee's separation from the company. icpas.org
5. Restrictions on Mandatory Meetings
The Worker Freedom of Speech Act prohibits employers from requiring employees to attend meetings that communicate the employer's stance on political or religious matters. Retaliation against employees who decline to participate in such meetings is also forbidden. knowledge.dlapiper.com
6. Employment Verification Procedures
Senate Bill 508 prevents employers from imposing work authorization verification requirements beyond those mandated by federal law. It also prohibits adverse actions against employees based solely on the receipt of a notification regarding work authorization discrepancies. icpas.org
LLCs operating in Illinois should review and, if necessary, update their policies and procedures to ensure compliance with these new regulations.
The above is an excerpt from the Illinois REIA Saturday Summary.