Key Takeaways

  • The cost to form an LLC in Illinois starts at a $150 Articles of Organization filing fee, plus optional expedited service fees.
  • Additional recurring costs may include annual report fees, business licenses, and registered agent fees.
  • Optional costs can arise from hiring attorneys, accountants, or formation services, which may help avoid filing errors.
  • Failure to file annual reports or pay renewal fees can result in penalties and potential dissolution of the LLC.
  • Certain industries require extra permits or licenses, which can add to the total cost LLC Illinois owners must budget for.

To set up an LLC in Illinois, costs include a $150 fee for filing your articles of organization, as well as other government and filing fees. You can also choose to pay an attorney, an accountant, or a third-party agency to help you start your business.

Illinois LLC Overview

An LLC in Illinois is a limited liability company that has been formed in the state of Illinois. An LLC is a business entity structure that offers the simplicity that comes with a partnership in terms of taxes, allowing profits to be taxed through each member's personal income. Along with the tax simplicity, an LLC can also help to protect the owner's personal assets from debtors and creditors.

The benefits of an LLC have made it a popular structure for many small businesses. To set up an LLC, you will need to start by filing Articles of Organization with the Secretary of States' Business Services Division for the state of Illinois. To file your articles of organization, you will be required to forward them along with the $150 filing fee. If you file your Article of Organizations and fees by mail, it may take up to two weeks for the process to be complete.

When setting up a limited liability corporation in Illinois, you will have mandatory and optional costs that will be required.

Mandatory

  • Government fees
  • Fees for filing forms

Optional

  • Professional service fees, such as for attorneys and accountants
  • Service fees for third-party companies helping to file forms

Breakdown of Illinois LLC Costs

Forming an LLC in Illinois involves both one-time and ongoing expenses. The primary cost is the $150 Articles of Organization filing fee, which is mandatory for all new LLCs. If you choose expedited service, there’s an additional $100 fee. However, these are just the starting points.

One-Time Startup Costs:

  • Articles of Organization: $150 standard filing fee.
  • Expedited Processing (optional): $100 for faster approval.
  • Name Reservation (optional): $25 if you wish to hold your LLC name before filing.
  • Certified Copies or Certificates of Good Standing (optional): $25–$50 depending on document type.

Recurring and Ongoing Costs:

  • Annual Report Fee: $75, due each year to maintain good standing. Late filings incur a $100 penalty.
  • Registered Agent Fee (if using a service): $100–$300 per year.
  • Business Licenses and Permits: Varies depending on industry and local regulations.
  • Franchise Tax or Additional State Fees: Illinois does not impose a separate franchise tax on LLCs, but local taxes may apply.

These costs can vary depending on whether you file yourself or hire a professional. DIY filing keeps expenses minimal, while using a third-party service often adds $50–$500 to the total, depending on the package.

Steps to Start an LLC in Illinois

There are multiple steps to setting up an LLC in Illinois including the following:

  1. Name your LLC. You must follow state naming guidelines, which require that your name include a word or abbreviation that identifies the company as an LLC. There are also some restricted words that cannot be added to the company name with a special license. Some words are prohibited altogether, such as words that might associate the company with a federal or state government agency.  To make sure that your name is not taken, run it through the State of Illinois website. Once you have chosen your name, you will want to secure your domain and an email address.
  2. Decide on a registered agent. To handle legal papers, correspondence of the LLC, and processes of legal action through a physical address, the LLC will have to name a designated registered agent. When choosing a registered agent, you must name someone who is authorized to transact business in the state of Illinois and has a physical address. While an owner or employee can be a registered agent, the LLC itself cannot be its own agent.
  3. File your Articles of Organization with the State of Illinois. To file the Articles of Organization, you will need to fill them out online, mail them in, or deliver them in person. Your Articles of Incorporation will need to include the LLC information, a list of members and managers, the name of the organizer, the name of the registered agent, the effective date, and any other provisions.
  4. Pay the fees. Along with your Articles of Organization, you will be required to send in a $150 nonrefundable fee, plus a $100 fee if you are choosing expedited service. Payment of the fee can be made by cashier's check, certified the check, attorney's check, or a CPA's check or money order that is made out to the Secretary of State.
  5. Draft an operating agreement. Although an operating agreement is not a required step for starting an LLC in the state of Illinois, it is recommended to create one. An operating agreement will lay out legal documentation for how the business will operate as well as outlining the ownership.
  6. Obtain an Employer Identification Number (EIN). Your next step will be to file for an EIN number, which will be used to identify your company for taxes and other purposes, similar how a social security number identifies an individual. A company will use this EIN number when it files its state, federal, and local taxes as well as opening banking account related to the business. You can obtain an EIN for your company for free once your LLC has been formed by filling out forms online at https://sa.www4.irs.gov/modiein/individual/index.jsp, or you can print, fill out, and mail in the appropriate forms.

Ongoing Compliance and Renewal Costs

After your LLC is formed, Illinois law requires certain annual maintenance to keep your business compliant.

  • Annual Report: Due before the first day of your LLC’s anniversary month each year. The standard fee is $75, with a $100 penalty for late filing.
  • Registered Agent Renewal: If you use a commercial registered agent, you must pay their annual renewal fee, which typically ranges from $100 to $300.
  • Business License Renewals: If your LLC operates in an industry requiring state or local licensing—such as food service, healthcare, or construction—you must pay renewal fees as required by the issuing authority.
  • Amendments: Changes to your LLC’s name, registered agent, or Articles of Organization require filing amendment forms, with fees starting at $25.

Failing to meet these compliance requirements can lead to late fees, administrative dissolution, and loss of liability protection. Setting reminders for due dates can help avoid unnecessary penalties.

Frequently Asked Questions

  1. How much does it cost to start an LLC in Illinois?
    The base cost is $150 to file Articles of Organization, plus $100 if you want expedited service. Optional costs apply for name reservations, licenses, and professional services.
  2. What is the annual cost to maintain an Illinois LLC?
    At minimum, $75 for the annual report. If you use a registered agent service, expect $100–$300 more per year, plus any required license renewals.
  3. Are there penalties for late annual reports?
    Yes. Filing after the due date incurs a $100 penalty, and prolonged noncompliance can result in administrative dissolution of the LLC.
  4. Do I need to pay for a registered agent in Illinois?
    Only if you don’t serve as your own registered agent. Professional registered agent services charge between $100 and $300 annually.

  5. Are business licenses included in LLC formation costs?No. Business license fees are separate and vary by industry and location. Some industries require multiple licenses or permits, increasing your overall cost.

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