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
- An Illinois LLC filing fee is $150 to submit the Articles of Organization.
- Missing the yearly $75 Annual Report by more than 60 days adds a $100 late fee.
- LLCs taxed as pass-through entities pay Illinois's 4.95% flat personal income tax on their share of profits. No Illinois franchise tax applies to LLCs.
| 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) | $100 | 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, whether you're filing 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 service option is available for $100. 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. You must pay $5 for standard processing or $50 if you want the procedure to be sped up.
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, which starts at 6.25% at the state level and can exceed 11% when combined with local taxes.
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 and has a turnaround time of 1-2 business days. If the LLC submits the report more than 60 days after the due date, there is a $100 fine.
You can file up to 45 days ahead of your due date, and the Secretary of State mails a reminder about 45 days out, so a missed deadline is hard to blame on surprise [1].
If the LLC is 180 days overdue, the state will administratively dissolve the business entity, so treat the due date as a hard deadline.
3. Taxes (Varies by Tax Election - Mandatory)
In Illinois, LLCs are subject to a personal property replacement tax. The tax rate for standard LLCs taxed as partnerships is 1.5% of net income.
LLCs must submit Form IL-1065 to pay this tax to 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. If you expect to owe $1,000 or more, quarterly estimated payments are due April 15, June 15, September 15 and January 15.
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 - $200)
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 your liability protection intact
- Increases the legitimacy of your company
- Aids in dispute avoidance or resolution without resorting to Illinois law
You may hire an attorney to prepare an Illinois LLC operating agreement for your company for a cost ranging from $100-$200 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 demonstrates that your Illinois limited liability company complies with all applicable laws.
I always advise clients and new business owners to obtain the certificate since investors and creditors favor companies that are compliant 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, independent of any Illinois filing.
Illinois state tax registration is a separate step, also free. Use Form REG-1 by mail or the Illinois Business Gateway website for online applications with the Illinois Department of Revenue.
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.
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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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