How Much Does an LLC Cost in Illinois (2026)
Forming an LLC in Illinois costs $150. That's the state filing fee for the Articles of Organization, paid to the Illinois Secretary of State.
After that, the main recurring cost is $75 per year for the Annual Report, due before the first day of your LLC's anniversary month. Here's the full breakdown of what to expect.
With 7+ years of hands-on experience helping entrepreneurs with business formation, I've analyzed the Illinois process to identify exact costs and requirements.
Quick Summary
- Illinois keeps mandatory state costs to a single recurring fee, though tax filings, licenses and permits can add their own costs.
- Some optional items are free if you do them yourself, like the EIN or an operating agreement template, though others still carry state fees.
- The costliest mistakes are timing mistakes, since late filings stack penalties on top of the normal fees.
| Cost Item | Amount | Frequency | Required? |
|---|---|---|---|
| Articles of Organization (Form LLC-5.5) | $150 ($400 for a Series LLC) | One-time | Mandatory |
| Expedited processing (24-hour online) | +$100 (added to the $150 base, $250 total) | One-time | Optional |
| Name reservation | $25 | One-time (90 days) | Optional |
| Annual Report | $75 ($100 late fee if 60+ days overdue) | Every year | Mandatory |
| Registered agent service | $0 (self) or $80–$300 | Every year | Optional |
| Operating agreement | $0 (template) or $100–$200 (attorney) | One-time | Optional |
| DBA / assumed name (SOS Form LLC-1.20) | $120 in 2026 (fee varies by year filed) | One-time + renewals | Optional |
| Certificate of Good Standing | $25 | As needed | Optional |
| EIN from the IRS | $0 (free at IRS.gov) | One-time | Recommended |
One-Time Formation Costs in Illinois
These are the fees you pay once, when the LLC is formed, starting with the state filing fee that actually creates the company.
1. Articles of Organization, Form LLC-5.5 ($150 - Mandatory)
An LLC in Illinois costs $150 for the Articles of Organization, filed on Form LLC-5.5 with the Illinois Secretary of State, for standard processing by mail or online. The filing steps themselves are covered in our guide on how to start an LLC in Illinois.
If you want to create a Series LLC, which allows you to establish multiple internal series under one umbrella LLC structure, the filing fee is $400.
For clients who want to start their businesses immediately, a 24-hour accelerated online option adds $100 on top of the base fee, for $250 total. See how long it takes to form an LLC in Illinois for the standard timelines.
2. Name Reservation ($25 - Optional)
To reserve a business name, you must pay the $25 filing fee. Businesses won't be able to use the name for 90 days.
If you wish to revoke your reservation, there is a price involved. Standard processing costs $5, and expediting the cancellation adds another $50 on top, for $55 total.
Before filing the application, I advise clients to do thorough research to see if their preferred business name is available for use by checking with the Department of Business Services.
Ongoing Costs to Maintain Active Status
Here is a detailed Illinois LLC cost breakdown that you should anticipate after formation. For LLC costs in all 50 states, see our full national guide.
1. Business Licenses and Sales Tax (Varies - If Applicable)
Illinois does not require a general business license at the state level, but depending on your industry and location, your LLC may need specific licenses and permits. The cost varies depending on the nature of the business.
LLCs selling tangible goods must register with the Illinois Department of Revenue to collect sales tax. The state rate is 6.25%, plus location-specific local taxes, so check your exact combined rate with the Illinois Department of Revenue rather than relying on one statewide figure.
To illustrate, a client of mine was required to obtain a $200 grain dealer license to operate his agricultural business.
2. Annual Report ($75 - Mandatory)
If you own an LLC in Illinois, you must file an Illinois Annual Report each year to maintain the LLC's status and compliance.
Annual report filing costs $75. If the LLC submits the report more than 60 days after the due date, there is a $100 fine.
The Secretary of State mails a reminder about 45 days before your due date, so a missed deadline is hard to blame on surprise [1].
If the LLC stays delinquent, the state can administratively dissolve the business entity within 120 days of the missed due date, so treat it as a hard deadline. If you plan to close the company on purpose instead, see our guide on dissolving an LLC in Illinois.
3. Taxes (Varies by Tax Election - Mandatory)
In Illinois, LLCs taxed as partnerships pay a 1.5% personal property replacement tax on net income. They pay it by filing Form IL-1065 with the Illinois Department of Revenue (IDOR) [2].
If LLC owners elect their companies to be taxed like C corporations, they'll be subject to a combined 9.5% tax rate. This includes a 7% corporate income tax plus a 2.5% personal property replacement tax.
For single-member LLCs taxed as disregarded entities, profits pass through to the owner's individual tax return at Illinois's flat 4.95% rate. S corporations pay a 1.5% replacement tax on their Illinois-apportioned net income.
Unlike corporations, LLCs are exempt from Illinois franchise tax. Corporations generally owe estimated payments once the amount tops $400, due April 15, June 15, September 15 and December 15. Partnerships and S corporations that elected pass-through entity tax follow the same due dates once they expect to owe more than $500.
4. Registered Agent Service ($80-$300 Annually - Optional)
An LLC's registered agent will accept service of process, legal notifications and other legal documents on the business's behalf. You can act as your own registered agent for $0 or select a reliable company to do so.
In Illinois, the fees for hiring the best registered agent services in Illinois run between $80 and $300 per year, but the advantages far surpass these prices.
Optional Costs Worth Knowing About
1. Operating Agreement ($0 - $3,000)
While you are not mandated to establish an operating agreement when starting a business in Illinois, this document matters because it:
- Defines ownership shares and management structure (the Articles of Organization are what create the legal entity)
- Explains the everyday procedures that you carry out for your business
- Keeps personal and business finances separate, an important habit for preserving the liability protection your LLC already has under Illinois law
- Increases the legitimacy of your company
- Can reduce disputes between members, though Illinois law still governs anything the agreement leaves unaddressed
You may hire an attorney to prepare an Illinois LLC operating agreement for your company, which commonly runs from around $750 for a flat-fee package to $1,500-$3,000 for hourly-billed work depending on complexity, or draft one for free using the free online templates available on different websites.
2. DBA Name Registration (Fee Varies by Year Filed - Optional)
For an Illinois LLC, an assumed name is registered with the Illinois Secretary of State on Form LLC-1.20, not with the county. The county clerk route applies to sole proprietors and partnerships [3].
Before registering, I advise clients to check the business names currently in use in Illinois to determine if the name is available.
The filing fee for an LLC assumed name is determined by the year you register. Here's a breakdown of the filing charges:
- Years ending in 0 or 5: $150 DBA filing fee
- Years ending in 1 or 6: $120 filing fee
- Years ending in 2 or 7: $90 filing fee
- Years ending in 3 or 8: $60
- Years ending in 4 or 9: $30
Based on the above information, for example, if you're registering an assumed name in 2026, you'll pay a $120 filing fee.
"A DBA, also known as a Trade Name, Fictitious Name, Assumed Name, or Fictitious Business Name, refers to the same concept."
- Jon Morgan, CEO, Co-Founder & Editor-in-Chief of Venture Smarter
3. Certificate of Good Standing ($25 - Optional, but Recommended)
The Certificate of Good Standing costs $25 and confirms your Illinois LLC is compliant with the Secretary of State's Business Services Department records, such as up-to-date annual reports.
Some investors, lenders and business partners ask for one before finalizing a deal, since it's a quick way to confirm your LLC is in good standing with the state.
4. EIN ($0 - Free at IRS.gov)
Your Federal Employer Identification Number is free at IRS.gov and takes about 5 minutes to get online. It comes from the IRS, but the agency recommends filing your Illinois LLC first and applying for the EIN afterward.
If your LLC has state tax responsibilities, such as sales tax collection or withholding, register separately and for free with the Illinois Department of Revenue through MyTax Illinois or Form REG-1.
Formation services in Illinois charge $50 to $100 to obtain the EIN on your behalf, an expense you can skip entirely by applying yourself. It's the one item on this list that never has to cost you anything.
FAQs
Is There a Penalty for Paying My Taxes Late in Illinois?
Yes, there is a penalty for paying your taxes late in Illinois. The charge is based on the number of days your payment is late.
How Much Does a Foreign LLC Cost in Illinois?
A foreign LLC in Illinois costs $150 to file the Application for Admission to Transact Business (Form LLC-45.5). Once your registration is approved, you can transact business in Illinois.
References:
- https://www.ilsos.gov/departments/business-services/annual-reports/llc-instructions.html
- https://tax.illinois.gov/questionsandanswers/604.html
- https://www.cookcountyil.gov/service/assumed-business-name-registration
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