How Much Does an LLC Cost in Illinois
From the standard $150 filing fee to a range of other expenses, read on to ensure you're financially prepared before creating an LLC in Illinois.
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Here are the following costs to consider:
- Domestic LLC Formation Filing Fee: $150
- Foreign LLC Formation Filing Fee: $150
- LLC Annual Report Fee: $75
- Business Permits and Licenses Fees: $0 to $500+
- Taxes 4.95% and15.3%
- Registered Agent: $0, or $100-$300/yr
- Operating Agreement: $0, or up to $500+
- Employer Identification Number: $0, or $50 to $99
- BOI Report: $0, or $25 to $149
- Optional Fees: $0 to $3,000+
Understanding the costs of starting an LLC in Illinois isn't the most straightforward. For instance, the cost of filing an Assumed Business Name in the state varies depending on the year you filed it.
It can be a headache at first glance, but it will all become clear once you've read through this guide. This comprehensive checklist of Illinois LLC fees will help you prepare a more accurate budget.
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The LLC formation filing fee in Illinois is $150.[1] On top of that, the annual report fee is $75. Other add-on fees could increase the total cost of forming an LLC in Illinois to over $1,000.
Illinois Domestic LLC Formation Filing Fee
Cost: $150[1]
You need to file an Articles of Organization if you are an Illinois resident and you want to start an LLC in the state. This is a one-time LLC formation filing fee and is payable to the Illinois Secretary of State.
An Illinois LLC Articles of Organization contains the following details:
- Business name (with an "LLC" at the end)
- Business description or purpose
- The LLC's business address
- The names and addresses of LLC members and/or managers
- The registered agent's full name and address
If you're filing by mail, use a certified check, money order, or a check from an Illinois lawyer or CPA. For online filings, use a Visa, Mastercard, Discover, or American Express credit card. Your payment will be refunded if your LLC application is rejected.
Illinois Foreign LLC Formation Filing Fee
Cost: $150[1]
You need to file an Application for Admission to Transact Business in Illinois if you want to start an LLC in the state but are not a resident.
This also applies if your LLC was originally formed in another state (your "home" state), but you also want to conduct business in Illinois. This process ensures that your LLC is recognized and authorized to do business in Illinois, even though it was formed under the laws of a different state.
Yes. You need to file an annual report and submit it to the Illinois Secretary of State each year. The filing fee is $75.
Illinois LLC Annual Report Fee
Cost: $75[1]
LLCs are required to submit an Annual report to the Secretary of State in Illinois. This report helps the state maintain accurate details of your business. All the information included in your LLC's Annual report is public and is accessible to everyone.
Annual reports are due on the last day before your LLC's formation month. For example, if your LLC was established on February 23, the annual report must be filed by January 31 every year.
Submitting the Annual report on time is important because it keeps your LLC in compliance with state law, and therefore in good standing.
Yes. The penalty for failing to pay the annual report filing fee is $100. The state could also dissolve your LLC if you fail to pay the fee within 60 days of the deadline.
Illinois LLC Business Permits and Licenses Fees
Cost: $0 - $500+
There's no state-level general business license in Illinois. However, you may need to get additional permits and licenses if your LLC:
- Has industry-specific licenses, like a liquor license
- Conducts higher-level business activities, like building houses
- Operates in a city that has a county-level business license, like in Cook County
Additionally, an LLC that provides professional services, like a dental clinic or an architecture firm, will need to get a professional license. The cost of licenses and permits vary. Visit the Illinois Business Registrations, Licenses & Permits website for more information.
Illinois Business Taxes
State Income Tax Rate: 4.95% of taxable income[2]
LLCs are generally considered "pass-through" entities for tax purposes. This means the LLC's profits and losses pass through to the owners and are reported on individual tax returns.
Illinois' current personal income tax rate is 4.95% of taxable income. On top of that, you must also pay federal income taxes.
2024 Federal Income Tax Rates:[3]
| Tax Rate | Taxable Income |
|---|---|
| 10% | $0 to $11,000 |
| 12% | $11,001 to $44,725 |
| 22% | $44,726 to $95,375 |
| 24% | $95,376 to $182,100 |
| 32% | $182,101 to $231,250 |
| 35% | $231,251 to $578,125 |
| 37% | $578,126 and up |
Don't forget the 15.3% federal self-employment tax.[4]
No. There is no franchise tax required from any LLC operating in the state of Illinois.
Optional Fees for LLCs in Illinois
After setting up your LLC, there are still optional or add-on fees you may face along the way.
From reserving a business name to getting the requirements for an LLC bank account, here are the rest of the LLC fees you should look out for.
| Illinois LLC Optional Fees | Cost |
|---|---|
| Illinois LLC Expedited Services Fee | $20 - $200 |
| Illinois LLC Registered Agent Fee | $0 - $300+ |
| Illinois LLC Operating Agreement Fee | $0 - $500+ |
| Illinois Employer Identification Number (EIN) | $0 - $99 |
| Beneficial Ownership Information Report | $0 - $149 |
| Illinois LLC Name Reservation Fee | $25 |
| Illinois LLC Doing Business As (DBA) Fee | $30 - $150 |
| Illinois LLC Certified Copy of Business Document Fee | $25 |
| Illinois LLC Certificate of Good Standing Fee | $25 |
| Illinois LLC Statement of Correction Fee | $25 |
| Illinois LLC Statement of Amendment Fee | $50 |
| Illinois LLC Statement of Change Fee | $25 |
| Illinois Business Website Domain Fee | $10 - $20 |
| Illinois Business Insurance Premiums | $ - $$$ |
Illinois LLC Expedited Services Fee
Cost: $20 - $200[1]
If you're in a hurry and need your documents processed quickly, you can pay the expedited services fee. Doing so will process your LLC-related documents faster than the standard processing time.
It takes around 10 business days to receive the decision from the Secretary of State after submission of your Articles of Organization. If you pay the $100 expedited services, it will be processed on the day that it was received.
You can also request expedited processing for other LLC documents. It costs $20 for a Certificate of Good Standing and $50 to $200 for all other documents.
Illinois LLC Registered Agent Fee
Annual Cost: $0, or $100-$300/yr
In Illinois, you must have a registered agent to receive business and legal documents for your LLC. This includes government notices, tax forms, and annual reporting forms.
You can technically be your LLC's registered agent—as long as you're at least 18 and have a physical street address in Illinois. You must also be available to receive documents during business hours.
However, your address will be public record. So many LLCs like to hire a registered agent service to keep their personal details private. These services usually charge $100-$300 per year to be your registered agent.
The cost of a registered agent depends on the services included. A registered agent service that also processes your LLC's other business needs will likely charge more.
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Illinois LLC Operating Agreement Fee
Cost: $0, or up to $500+
LLCs in Illinois are not required to have an operating agreement. However, it's recommended because it defines important rules and regulations that all members must follow.
An LLC operating agreement contains the following:
- The roles and responsibilities of each member
- How new or departing members will be treated
- How business profits and losses will be divided
Ideally, you should already have a signed Operating Agreement before forming an LLC in Illinois. But if your LLC is already formed, you can always draft it yourself after.
Alternatively, an LLC attorney might charge you a $500 flat fee for a standard operating agreement. If you have more complex details, the cost could be higher.
You can write your own with free online operating agreement templates. If you want a professional to create it for you, LLC services usually offer this as a part of their packages for much less than attorney costs.
Illinois Employer Identification Number (EIN)
Cost: $0, or $50 to $99
Any LLC with more than one member or with employees must have an EIN, regardless of how it's taxed. This is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to identify a business entity for tax-related purposes.
You can just apply for an EIN for free on the IRS website. But if you'd like an LLC service to process it for you, you can do so for a small fee. Here are some providers that do this and their pricing:
- Northwest Registered Agent: $50
- Bizee: $70
- ZenBusiness: $99
Single-member LLCs in Illinois don't require an EIN, but it's almost essential in practice. For instance, you'll need one if you hire employees or want to open a business bank account.
Yes. Separating your LLC's finances from personal assets is a requirement of liability shielding. Use a separate bank account to accept payments and pay business expenses to prevent piercing the corporate veil .
Beneficial Ownership Information Report
One-Time Cost: $0, or up to $149
The Beneficial Ownership Information (BOI) is a one-time report that must be submitted to the Financial Crimes Enforcement Network (FinCEN) within 90 calendar days of your LLC's formation.
[5]
It includes information about the LLC's beneficial owners, including name, birth date, and address.
FinCEN doesn't charge a fee to submit your BOI report. But you can pay an LLC service to process it for you and save yourself the hassle:
- Northwest Registered Agent: $25
- LegalZoom: $149
- ZenBusiness: $149
You're considered a beneficial owner if you own 25% or more of the ownership interests in your LLC. Or if you exercise substantial control over the LLC.
Illinois LLC Name Reservation Fee
Cost: $25[6]
Naming your LLC does not cost anything. It's included with your Articles of Organization.
But if you're not ready to submit the Articles of Organization, you can file the name reservation form first. This will reserve the business name you want for 90 days and will refrain others from using it.
Before reserving a business name, check if anyone else is already using it through the Department of Business Services search engine.
When naming your LLC, you can only use English alphabet letters, Arabic or Roman numerals, and symbols that the Department of Business Services can reproduce. Additionally, an LLC name must include LLC, Ltd., or similar.
Illinois LLC Doing Business As (DBA) Fee
Cost: $30 - $150[7]
A DBA name, short for "Doing Business As," is a nickname for a business. It's the name a company uses to operate that is different from its legal, registered name.
For example, if "John Doe Enterprises LLC" wants to do business as "John's Coffee Shop," the latter would be the DBA name. Entrepreneurs usually get a DBA if they want to operate under a business name that is more marketable or doesn't have an "LLC" at the end.
In Illinois, DBAs are effective for five-year periods. However, the five-year periods are static. This means the renewal period is the same for every business.
The DBA fee in Illinois depends on what year you filed:
- $150 - Years ending in 0 or 5
- $120 - Years ending in 1 or 6
- $90 - Years ending in 2 or 7
- $60 - Years ending in 3 or 8
- $30 - Years ending in 4 or 9
If you file a DBA in February 2022, it will remain valid for three years until February 2025. If you file a DBA in February 2023, it will be valid for two years.
Illinois LLC Certified Copy of Document Fee
Cost: $25[1]
The Illinois Secretary of State provides official state-issued copies of your LLC's business documents. You might need a Certified Copy of a business document for your LLC for several reasons:
- Opening a bank account
- Applying for a loan
- Entering into contracts
Certified copies of business documents may also be required if you plan to expand your LLC operations to other states.
Illinois LLC Certificate of Good Standing Fee
Cost: $25[1]
You will need a Certificate of Good Standing to demonstrate that your LLC is up to date with taxes and state reports. This certificate also confirms that your LLC is officially registered and legally authorized to do business in Illinois.
Illinois LLC Statement of Correction Fee
Cost: $25[1]
The Illinois LLC Correction Fee is the amount you pay to correct any mistakes in your LLC's official documents filed with the state. It's a charge for updating or fixing errors in these records.
It's important to review your Articles of Organization as soon as it is approved by the Secretary of State. If there are any errors in the details, like your office address or members' names, use the Statement of Correction to rectify the mistakes.
Illinois LLC Statement of Amendment Fee
Cost: $50[1]
The Illinois LLC Amendment Fee is the cost of making official changes to your LLC's registered information with the state. This includes altering the business name or address.
No. A Statement of Correction is used to fix errors in already submitted LLC documents, like typos or incorrect information. A Statement of Amendment, on the other hand, is for making significant changes to the LLC's official details.
Illinois LLC Statement of Change Fee
Cost: $25[1]
You can change your LLC's registered agent anytime. However, you must inform the Secretary of State of this change as soon as possible. You must also submit the Statement of Change of Registered Agent if your registered agent's physical address in Illinois has changed.
Illinois Business Website Domain Fee
Annual Fee: $10 to $20
A website domain and social media presence provide dedicated online spaces for your business. It's essential for marketing, customer engagement, and brand visibility in today's digital world.
Even if you aren't planning to build a business website now, you could still buy the domain name. This will prevent others from using your LLC's name as a web address.
Domain squatters often monitor newly registered LLC names. They purchase corresponding website domains and then resell them at significantly higher prices.
Illinois Business Insurance Premiums
Cost: $ - $$$
All LLCs in Illinois with at least one employee are required to get workers' compensation insurance. As an LLC member, you have the option to include yourself in the insurance coverage.
Illinois does not offer a state fund for workers' compensation insurance. This means you'll need to find a private insurance company.
Additionally, you may need to pay for liability insurance if the nature of your LLC's business purpose has a high risk of being sued. The cost of business insurance depends on your business' risk level and the amount of coverage you want.
Curious to know how much it costs to maintain an LLC in Illinois? Use the calculator below to get a clear picture of your ongoing expenses.
Is it worth forming an LLC in Illinois?
It could be worth forming an LLC in Illinois because the state's 4.95% flat income tax rate for LLC owners is lower compared to other states.
Additionally, you can form a series LLC in Illinois. This lets you create separate "series" within a single LLC, each with its own liabilities and assets.
However, forming an LLC is more complex than being a sole proprietor. You must file the Articles of Organization, and then submit an annual report with the $75 annual fee. Meanwhile, a sole proprietorship often requires no formal registration with the state.
Should I Hire LLC Formation Services?
It's a good idea to hire LLC formation services if you've never formed an LLC before. They handle all the paperwork and help you avoid costly mistakes.
You don't have to spend hundreds of dollars either. The cheapest LLC filing services can help you start an LLC for free.
Bottom Line
Creating an LLC in Illinois involves a lot of planning and budgeting. The LLC formation filing fee costs $150, cheaper than the filing fees in other states.
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Economy Package at $149 + State Filing Fees
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However, the total cost could easily balloon once you include bigger expenses like business insurance, business permits and licenses, and registered agent services.
Before creating an LLC in Illinois, the best way to move forward is to save this comprehensive list of LLC fees–and then ensure that you have appropriately budgeted for them.
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References
- ^ The Office of the Illinois Secretary of State. Limited Liability Company Publications/Forms, Retrieved 02/11/2024
- ^ Illinois Department of Revenue. Income Tax Rates, Retrieved 02/11/2024
- ^ IRS.
Federal income tax rates and brackets, Retrieved 10/19/2024 - ^ IRS. Self-employment tax (Social Security and Medicare taxes), Retrieved 10/19/2024
- ^ Financial Crimes Enforcement Network. Beneficial Ownership Information, Retrieved 10/02/2024
- ^ The Office of the Illinois Secretary of State. Application for Reservation of Name, Retrieved 02/11/2024
- ^ The Office of the Illinois Secretary of State. Adopting an Assumed LLC Name, Retrieved 02/11/2024
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