How Long Does It Take To Form an LLC in Illinois (Guide)
Before your LLC can benefit from a limited liability company structure, it is important to note that there is a turnaround time for the SOS to receive, verify and finally approve your application.
Over my 7+ years as a Mergers and Acquisitions specialist, I've personally facilitated LLC formations for 20 businesses across Illinois, with processing times ranging from 24 hours to 4 weeks depending on the filing method chosen.
After analyzing formation data from 50+ Illinois LLCs and consulting directly with an Illinois LLC attorney, I identified the exact factors that determine approval timelines.
I've also made costly mistakes—including a $150 refiling fee after submitting incomplete documents via mail—that I'll help you avoid.
Quick Summary
- It takes 7-14 business days to form an LLC in Illinois via mail and 5-10 business days if filed online.
- The Illinois Secretary of State offers an expedited shipping option for LLC owners at an additional fee of $100 for 24-hour processing.
- Illinois generated a net increase of 14,131 small business jobs between March 2023 and March 2024, according to the US Small Business Administration. The ability to establish an LLC within a single business day means you can start operating faster than in 38 other states.
- Whenever my clients file their applications, I advise them to submit online using the expedited option.
What is The Fastest Way to Start an LLC in Illinois?
The fastest way to start an LLC in Illinois is by filing online or in person using the expedited service at an additional cost. Your formation documents are processed within 24 hours.
If you want your business to be operational at the soonest possible time, this is the best option for your LLC.
LLC Processing Time in Illinois
The Illinois Secretary of State offers different processing times for the articles of organization depending on the LLC owner's filing method.
Here are four filing methods offered by the Secretary of State's office in Illinois and their different LLC processing times.
1. Expedited Illinois LLC Processing Time Online and In Person (24-hour processing + $100)
The Illinois SOS offers a 24-hour expedited shipping option for an additional $100 state fee.
When I was about to file for a series LLC, I learned that the payment for expedited service costs more.
If you're filing your LLC legal documents online and opting for expedited service, you'll pay $250 for limited liability companies and $500 for series LLCs.
2. Non-Expedited Illinois LLC Processing Time By Mail (7-14 business days)
The non-expedited processing for all mail submissions takes 7-14 business days, excluding holidays and weekends, plus additional mailing time. You cannot request expedited processing via mail; you must visit the office in person or file online to access expedited options.
To file by mail, I had to download Form LLC-5.5 from the Illinois Secretary of State website, fill it out, and send it to the following address:
Central Registration Division Illinois Department of Revenue
PO BOX 19030
SPRINGFIELD IL 62794-9030
Total approval time for mail filings typically ranges from 3-4 weeks when accounting for both processing and transit time.
3. Illinois LLC Processing Time Online (5-10 business days)
Online filing for domestic and foreign LLCs in Illinois is processed within 5-10 business days for non-expedited options. You can register online through the MyTaxIllinois website [1, 2].
When a client had to file articles of organization online, I reminded them to have all LLC information on hand so they won't experience website time-outs.
The SOS has built an automatic time-out security feature that occurs after every 30 minutes of inactivity.
Also, avoid filing on Sundays between 3:00 AM and 6:00 AM CST as there is scheduled website maintenance and, as a result, slow response times.
“Don't forget, the LLC formation timeframe is just one piece of the puzzle. Building a strong operating agreement and obtaining any necessary licenses are crucial next steps.”
Delina Yasmeh, J.D./Tax LL.M, Distinguished Expert in Mergers & Acquisitions
Factors Influencing The Formation Timeline Of Illinois LLCs
Although the Illinois Secretary of State has an established formation timeline, various factors can prolong the approval time. This includes the following:
- Filing method: The primary factor that affects the approval time of your LLC is the filing method you opted for. Mail, online and expedited options have varying processing periods.
- Processing errors: Website downtime and equipment malfunctions can prolong the approval time.
- Documentation issues: Lack of information or inaccurate details may cause your application to be rejected. The need to refile would cause a delay in the formation of your LLC.
Despite possible delays, the conducive business climate in Illinois has resulted in the launch of 14,131 new establishments from March 2023 to March 2024, according to the US Small Business Administration.
FAQs
Where Can I Check the Status of My Illinois LLC Formation During the Processing Period?
You can check the status of your Illinois LLC formation during the processing period by using your Packet Number that has been assigned by the Secretary of State.
Is There a Difference in Processing Time for Domestic and Foreign LLCs in Illinois?
There is a difference in processing time for domestic and foreign LLCs in Illinois. The state takes up to 45 days to review and approve Foreign limited liability companies.
What Do I Need After My Illinois LLC Is Approved?
After your Illinois LLC is approved, you may need a federal employer identification number from the IRS (10-15 minutes online), registration with the Illinois Department of Revenue for your business tax ID (2-3 business days), and industry-specific business licenses depending on your location and activities.
References:
- https://tax.illinois.gov/businesses/registration.html
- https://www.ilsos.gov/departments/business_services/organization/llc_instructions.html
Everything is very open with a clear explanation of the challenges. It was really informative. Your site is very useful. Thank you for sharing!
I’ve been surfing on-line more than 3 hours these days, but I never discovered any fascinating article like yours. It is beautiful price sufficient for me. In my opinion, if all website owners and bloggers made just right content material as you did, the web shall be a lot more helpful than ever before.
Great post. I used to be checking constantly this blog and I am inspired! Extremely useful information specifically the remaining phase 🙂 I handle such information much. I was looking for this certain information for a long time. Thank you and best of luck.
Keep working ,remarkable job!
Thank you Jon for outlining the timeline so clearly. I wasn’t sure how long I’d be waiting for my LLC to be approved. This will help a lot.