Last Updated: February 16, 2024, 12:57 pm by TRUiC Team


How Much Does It Cost to Start an LLC in Illinois?

The cost to start an LLC (limited liability company) online in Illinois is $150. This fee is paid to the Illinois Secretary of State when filing the LLC’s Articles of Organization.

We recommend Northwest ($29 + State Fees) to help form your LLC.

How Much Does an LLC Cost in Illinois?

Illinois LLC Online Filing Fee: $150

The main cost to start an LLC in Illinois is the $150 fee to file your LLC's Articles of Organization online with the Illinois Secretary of State.

For a look at LLC costs in every state, read our other Cost to Start an LLC and How to Form an LLC guides.

Cost to Form a Foreign LLC in Illinois

If you already have an LLC that is registered in another state and you’d like to expand your business into Illinois, you’ll need to register your LLC as a foreign LLC in Illinois.

The cost for registering an Illinois foreign LLC is $150. You can register a foreign LLC in Illinois by filing an Application for Admission to Transact Business (Form LLC-45.5).

Optional LLC Formation Costs

There are optional fees associated with LLC formation:

LLC Name Reservation

Reserve your name for up to 90 days prior to LLC formation by filing Form LLC 1.15 and paying the $25 filing fee.

Assumed Name

File an Application to Adopt, Change, Cancel or Renew an Assumed Name (Form LLC-1.20) and pay the $25 filing fee to create a name other than your legal LLC business name.

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Ready to Start Your Illinois LLC?

Read our LLC formation services review to choose the best service for you.

Annual Cost of an LLC in Illinois

Once you have successfully formed your LLC in Illinois, it's important to understand the ongoing annual costs associated with maintaining your LLC's compliance and operations. 

While these costs may vary depending on your specific business needs, there are several common expenses to consider when budgeting for the annual cost of your LLC in Illinois.

  • Annual Report: In Illinois, LLCs are required to file an annual report with the Secretary of State's office. The filing fee for the annual report is $75. This report includes updated information about your LLC, such as its address, members, and managers. Failing to file the annual report by the due date can result in late fees or even administrative dissolution of your LLC.
  • Registered Agent Service: Having a registered agent is a legal requirement for LLCs in Illinois. A registered agent receives important legal and official documents on behalf of your LLC. If you choose to hire a registered agent service, the fee can range from around $100 to $300 per year. Some LLC owners choose to serve as their own registered agents, which eliminates this cost but requires being available during business hours to receive legal documents.

How to Register an Illinois LLC Yourself

Forming an LLC yourself is easy; just follow the seven steps below.

Recommended: Using an LLC formation service like Northwest ($29 + State Fees) saves time and ensures compliance. Besides the low cost, we like their streamlined approach and excellent customer service.

Seven Basic Steps to Start an LLC in Illinois

Step 1: Name Your Illinois LLC
Step 2: Choose a Registered Agent
Step 3: File the Articles of Organization
Step 4: Create an Operating Agreement
Step 5: Get an EIN
Step 6: File an Annual Report
Step 7: Keep Your Company Compliant

Step 1: Name Your Illinois LLC

When you name your Illinois LLC, you’ll need to choose a name that:

  1. Is available for use in the state of Illinois
  2. Meets Illinois naming requirements
  3. Is available as a web domain

Recommended: Visit our Start an LLC in Illinois guide for detailed naming rules and instructions for registering a business name in Illinois.

Not sure what to name your business? Check out our How to Name a Business guide and free LLC Name Generator.

We recommend that you check online to see if your business name is available as a web domain. Even if you don't plan to create a business website today, you may want to buy the URL in order to prevent others from acquiring it.

Find a Domain Now

Step 2: Choose a Registered Agent

All LLCs in Illinois must appoint a registered agent. A registered agent primarily acts as your LLC’s main point of contact with the state. But most importantly, they are responsible for accepting service of process in the event your business is sued.

Your Illinois registered agent must:

  • Be at least 18 years or older
  • Have a physical address in Illinois
  • Be available during normal business hours to accept service of process

Get Free Registered Agent Services

Form an LLC with Northwest Registered Agent to get one year of registered agent services free of charge.

Step 3: File the Articles of Organization

The Illinois Form LLC-5.5 — Articles of Organization is a document that is filed with the Illinois Secretary of State to form an LLC. The fee for filing the Articles of Organization is $150 online.

For detailed instructions for completing the Articles of Organization, visit our How to File the Illinois Articles of Organization guide.

File the Illinois Articles of Organization

OPTION 1: File Online With Cyberdrive Illinois

File Online

- OR -

OPTION 2: File Form LLC-5.5 by Mail

Form LLC-5.5

State Filing Cost: $150, payable to the Secretary of State

Mailing Address:
Department of Business Services
Limited Liability Division
501 S. Second St., Rm. 351
Springfield, IL 62746

Step 4: Create an Operating Agreement

An operating agreement isn't required for Illinois LLCs, but it's a good practice to have one.

What is an operating agreement? An operating agreement is a legal document outlining the ownership and operating procedures of an LLC.

Why are operating agreements important? A comprehensive operating agreement ensures that all business owners are on the same page and reduces the risk of future conflict.

For more information on operating agreements, read our Illinois LLC operating agreement guide.

Step 5: Get an EIN

What is an EIN? An EIN or Employer Identification Number is a nine-digit number issued by the Internal Revenue System (IRS) to identify a business for tax reporting purposes. An EIN is essentially a Social Security number (SSN) for your company.

Why do I need an EIN? An EIN number is required for the following:

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Free EIN: You can get an EIN from the IRS website (free of charge) after forming your business.

Step 6: File the Annual Report

Illinois requires LLCs to file an annual report with the Secretary of State. This can be done online or by mail with a $75 filing fee. 

Annual reports are due each year prior to the first day of the month in which the LLC was formed. Reports can be filed starting 60 days prior to the due date.

Step 7: Keep Your Company Compliant

In Illinois, ensuring your LLC remains compliant involves adhering to government regulations, fulfilling tax obligations, and complying with employment laws. 

Here's a summary:

  • Obtain all necessary business licenses and permits, the fees and requirements for which can vary based on your business activities. Our Illinois Business License guide offers more detailed information. For a more hands-off approach, consider hiring a professional service to research your business’s licensing requirements.
  • Stay current with your Illinois LLC taxes. If you sell physical products, you'll typically need to register for a seller's permit through the MyTax Illinois website. Illinois charges a base state sales tax of 6.25% for general merchandise and services, and 1% on qualifying medical appliances, foods, and drugs. Local taxes can add up to 4.75% more. If you're hiring employees, you must register for both Unemployment Insurance Tax and Employee Withholding Tax through the MyTax Illinois portal.
  • Illinois levies a flat individual income tax rate of 4.95% on your LLC's income. State tax returns are due each year by April 18. You can get more information from the Illinois Department of Revenue website.
  • Your federal income tax must also be reported to the IRS each year using Form 1065 for multi-member LLCs or Form 1040 Schedule C for single-member LLCs.
  • If hiring employees, follow legal requirements by verifying the eligibility of new hires to work in the US, reporting new employees to the state, providing workers' compensation insurance, withholding employee taxes, and prominently displaying workplace compliance posters.
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Steps After LLC Formation

Read all the steps you’ll need to maintain your LLC’s personal liability protection, open a business bank account, get business insurance, and stay up to date with state reporting requirements.

Visit our After Forming an LLC guide to learn more.

Illinois LLC Cost FAQ

When you form an LLC in Illinois, you must file your Articles of Organization with the Illinois Secretary of State, which comes with a fee of $150. This can be done online or by mail. Additionally, other costs that may be associated with forming an LLC include the cost of hiring a registered agent, purchasing business insurance, and maintaining the LLC.

A registered agent is a person or entity who will receive legal documents on behalf of your LLC. In Illinois, a registered agent's official consent is not required either initially or for appointing a new agent. The cost of hiring a registered agent can vary depending on the service you choose.

Yes, maintaining an LLC in Illinois involves filing an annual report with the Illinois Secretary of State each year, which has a fee of $75.

Before you form your LLC, you need to choose a unique name that is distinguishable from other businesses in Illinois. You can search for name availability using the Corporation/LLC Search tool.

There is no additional fee for a name availability search in Illinois. However, if you wish to operate under a different name, you may do so by filing an assumed name, or "doing business as" (DBA) name.

In Illinois, you can obtain a Certificate of Good Standing, which affirms that your LLC is legally formed and properly maintained. The method of applying and any associated fees will depend on your specific circumstances.

Yes, the Articles of Organization can be filed online or by mail with the Illinois Secretary of State. The filing fee is $150.

Yes, LLC formation services can streamline the process of setting up an LLC by handling paperwork, like filing the Articles of Organization, and providing useful features, like registered agent services. These services usually come with a fee, so remember to include it in your budget.

In Illinois, there aren't any specific state compliance fees beyond the filing and annual report fees mentioned earlier. However, always be mindful of potential costs like business insurance, potential registered agent service fees, and possible expenses if you choose to use LLC formation services.

Article Sources

Illinois Licenses and Permits
https://www.illinois.gov/business/registration-licenses-permits.html

Internal Revenue Service (IRS)
https://www.irs.gov/businesses/small-businesses-self-employed/employer-id-numbers

Illinois Secretary of State Business Services
https://www.cyberdriveillinois.com/services/business.html

Small Business Administration
https://www.sba.gov/business-guide/launch-your-business/apply-licenses-permits

Chamber of Commerce
https://www.officialusa.com/stateguides/chambers/Illinois.html