Key Takeaways

  • The LLC cost Illinois includes the $150 Articles of Organization filing fee ($400 for a Series LLC) plus potential expedited, service, and compliance fees.
  • Expedited processing costs $100 and can reduce approval time to under 24 hours.
  • Illinois LLCs must budget for annual report fees, taxes, and possible local license or permit costs.
  • Optional costs include registered agent services, legal help, name reservations, and certified document requests.
  • Certain activities (like foreign registration, amendments, or reinstatements) carry separate state fees.

Forming an LLC in Illinois

LLC cost Illinois refers to the cost of creating and maintaining an LLC, or limited liability company, in the state of Illinois. This cost includes taxes, filing fees, and possibly other assorted fees, depending on your business activities.

Regardless of these fees, the cost of forming and operating an LLC in Illinois may still be less than forming and operating other business entities, since LLCs enjoy pass-through taxation, meaning that LLC profits are passed through to the LLC member’s personal income and double-taxation is thereby avoided. Because of this, LLCs are the most popular choice for small business owners. In Illinois, they can be formed by filing through the secretary of state’s website or with the help of a tax service.

Additional Startup Costs to Consider

Beyond the basic state filing fee, new Illinois LLC owners may encounter optional but common startup expenses, including:

  • Name Reservation Fee: If you want to reserve your LLC name before filing, the cost is $25 for a 90-day hold.
  • Registered Agent Service: While you can act as your own registered agent, hiring a professional service typically ranges from $100 to $300 annually.
  • Business Licenses and Permits: Depending on your industry and location, you may need municipal or county licenses. Fees vary by jurisdiction.
  • Operating Agreement Preparation: Although not required by the state, having an attorney draft an operating agreement may cost several hundred dollars.

LLC Filing Fee

In order to form an LLC in Illinois, it will be necessary to file Articles of Organization with the Secretary of State. Articles of Organization provide basic information about your LLC, such as your name, address, and registered agent’s name and address to the state. There are some fees for this filing, however. They are:

  • $150 filing fee for a regular LLC.
  • $400 filing fee for a series LLC.
  • 2.35 percent payment processing fee if the fee payment is made with a credit card.

The State of Illinois accepts MasterCard, Visa, American Express, and Discover for this credit card payment; debit cards are not recommended. The Illinois Department of Business can provide more information on this process.

Annual Report Filing Requirement

Illinois requires all LLCs to file an Annual Report with the Secretary of State. The filing fee is $75 if submitted online or by mail. The due date is the first day of the LLC’s anniversary month each year. Failing to file on time incurs a $100 late penalty, and prolonged delinquency can result in administrative dissolution of your LLC.

Expedited and Online Service Fees

If you urgently need to form your LLC, there is an expedited filing service available through the Illinois Secretary of State’s office. The expedited service fee is $100, and it will get your Articles of Organization filed in under 24 hours (while non-expedited filings will usually take between one to two weeks). One can request expedited service either in person or by filing with the secretary of state’s CyberDriveIllinois website.

Illinois LLC Tax Costs

There are several taxes an LLC will be subject to in Illinois. These taxes are:

  • The Illinois personal income tax: 5 percent.
  • The Illinois sales tax: 8.4 percent average (6.25 percent state tax, plus average 2.15 percent local tax.

Some counties and municipalities also have their own taxes in addition to these taxes. The local revenue department should be able to inform you if these taxes will apply to your LLC.

Franchise Tax and Employer Taxes

While Illinois does not impose a separate state franchise tax on LLCs, certain tax obligations can still apply:

  • Personal Property Replacement Tax (PPRT): LLCs taxed as corporations must pay a 2.5% PPRT on net income.
  • Employer Payroll Taxes: If your LLC has employees, you’ll need to register for and pay Illinois withholding tax, unemployment insurance tax, and federal payroll taxes.
  • Local Taxes: Some municipalities may impose additional local business taxes, especially if you operate in areas with special taxing districts.

LLC Fees for Non-Governmental Service

Depending on what route you take for LLC creation, there could be additional fees. If you use the services of a private company to help you with LLC filing, there will be an additional cost to add onto the state’s filing fees. Consulting with an accountant or attorney will also add extra costs. In either case, it is a good idea to obtain service quotes from several professionals or companies before entering into a business agreement with them.

Foreign LLC Registration Fees

If your LLC was formed outside Illinois but will do business in the state, you must register as a Foreign LLC. The application fee is $150, with the same $100 expedited option available. Additional costs may include:

  • Certificate of Good Standing from your home state (fee varies by state).
  • Annual Report Fee of $75, due each year after registration.

Other LLC Fees

In addition to the above fees that are most typically encountered, there are a number of other fees one could encounter while establishing or operating an LLC in Illinois. These fees include:

  • Abstract Fee: $25 ($45 expedited)
  • Certificate of Good Standing Fee: $25 ($45 expedited)
  • Certified Copy Fee $25 ($45 expedited)
  • Reserved Name Cancellation Fee $5 ($55 expedited)
  • Reserved Name Transfer Fee $25 ($75 expedited)
  • Resignation of Registered Agent Fee $5 ($55 expedited)
  • Change of Registered Agent Fee $25 ($75 expedited)
  • Affidavit of Compliance Fee $5 ($55 expedited)
  • Articles of Amendment Fee $50 ($150 expedited)
  • Restated Articles of Organization Fee $150 ($350 expedited)
  • Domestic Application of Withdrawal Fee $5 ($55 expedited)
  • Statement of Correction Fee $25 ($75 expedited)
  • Petition for Refund Fee $5 ($55 expedited)
  • Statement of Denial Fee $10 ($60 expedited)
  • Statement of Termination Fee $5 ($55 expedited)
  • Application of Reinstatement Fee $200 ($300 expedited)
  • Articles of Conversion Fee $100 ($300 expedited)
  • Articles of Domestication Fee $100 ($150 expedited)
  • Domestication Statement Fee $100 ($150 expedited)

Reinstatement and Dissolution Costs

If your Illinois LLC is administratively dissolved, you can apply for reinstatement by paying the $200 reinstatement fee plus any delinquent annual report fees and penalties. If you choose to dissolve voluntarily, you must file Articles of Dissolution with a $5 fee (or $55 if expedited). Timely filing can help avoid ongoing tax obligations.

Frequently Asked Questions

  1. How much does it cost to start an LLC in Illinois?
    The base cost is $150 for a standard LLC filing ($400 for a Series LLC), plus optional expenses like name reservation, registered agent services, and business licenses.
  2. Is there an annual fee for an Illinois LLC?
    Yes. The annual report fee is $75, with a $100 penalty for late filing.
  3. How much does expedited LLC filing cost in Illinois?
    Expedited service costs $100 and can result in same-day or next-day processing.
  4. Do I need to pay taxes when forming an LLC in Illinois?
    You’ll owe applicable state income tax on LLC earnings, and if taxed as a corporation, you may owe the 2.5% Personal Property Replacement Tax.
  5. What is the cost to dissolve an Illinois LLC?
    The dissolution filing fee is $5 ($55 expedited), plus any outstanding taxes or annual report fees.

What sort of fees you must pay in Illinois will depend greatly on what sort of business your LLC is engaged in. If you need further help with LLC cost in Illinois, you can post your legal need on UpCounsel’s marketplace. UpCounsel accepts only the top 5-percent of lawyers. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law, and average 14 years of legal experience, including work with, or on behalf of companies like Google, Menlo Ventures, and Airbnb.