Illinois LLC Overview
Illinois is a major business state anchored by Chicago. With a $150 filing fee and $75/year annual report, it provides access to a world-class economy. The franchise tax was repealed in 2024.
Chicago is a global hub for finance, technology, manufacturing, and logistics. Home to CME, CBOE, numerous Fortune 500 headquarters, O'Hare International Airport, and extensive rail/highway networks.
Illinois's 4.95% flat income tax and higher filing fees make it more expensive than formation-friendly states. For non-residents, Wyoming or Arizona offer lower costs.
Illinois LLC Costs and Fees
All fees below are sourced from the Illinois Secretary of State fee schedule.
| Fee | Amount | When Due |
|---|---|---|
| Articles of Organization (online) | $150 | One-time (at formation) |
| Annual Report ($75/year) | $75/year | Anniversary month |
| Registered agent | $100-150/year (third party) | Ongoing |
| State income tax | 4.95% flat rate | On Illinois-sourced income |
| Sales tax | 6.25% state + local (up to 11%) | On taxable goods/services |
| Amendment | $25 | When needed |
| Certificate of Good Standing | $25 | When needed |
Franchise tax gone
Illinois's 2024 franchise tax repeal made it more competitive. At $75/year, the annual report is moderate — but Chicago's economy can justify the cost.
Step-by-Step: How to Form a Illinois LLC
Step 1: Choose your LLC name
Search for available names on the Illinois Business Entity Search. Your name must include "Limited Liability Company," "LLC," or "L.L.C." Ensure the name is distinguishable from existing entities on file.
Step 2: Appoint a registered agent
Every Illinois LLC must have a registered agent with a physical street address in Illinois. The agent must be available during normal business hours to accept legal documents on behalf of the LLC.
Step 3: File Articles of Organization
File online through the Illinois Secretary of State. The filing requires:
- LLC name with designator
- Registered agent name and Illinois address
- Principal place of business
- Purpose of the LLC
- Management structure
- Name and address of each manager/member
- $150 filing fee
Step 4: Create an Operating Agreement
While not always legally required in Illinois, an Operating Agreement is essential for banking, tax compliance, and internal governance. It establishes member rights, profit distribution, and management structure. We include a custom Operating Agreement in every formation package.
Step 5: Obtain an EIN
Apply for an Employer Identification Number (EIN) from the IRS. This is your LLC's tax ID number, required for banking, hiring, and tax filings. Online application is available for those with an SSN; fax or mail application for international applicants without an SSN.
Step 6: Register for Illinois taxes (if applicable)
If you will sell taxable goods or services in Illinois, register with the Illinois Department of Revenue for applicable tax accounts including sales tax and income tax withholding if you have employees.
Annual Compliance Requirements
- Annual report: Due during anniversary month. Fee: $75.
- Federal tax filing: Form 5472 with pro forma 1120 for foreign-owned LLCs.
- Illinois income tax: 4.95% flat rate on IL-sourced income.
- Sales tax: 6.25% + local additions.
- Registered agent: Maintain agent with IL address.
- FinCEN BOI Report: Required.
Illinois Taxes for LLCs
| Tax Type | Rate | Notes |
|---|---|---|
| State income tax | 4.95% flat | Pass-through to members |
| Franchise tax | $0 | Repealed 2024 |
| Sales tax | 6.25% + local | Up to 11% combined |
| Annual report | $75/year | Anniversary month |
The franchise tax repeal in 2024 was a significant win. The $75/year annual report is now the only recurring state filing fee.
Processing Times
| Processing Option | Time | Additional Fee |
|---|---|---|
| Online filing | 3-5 business days | $0 |
| Expedited | 1-2 business days | $100 |
| Paper filing | 5-10 business days | $0 |
Expedited processing available for $100. Standard online takes 3-5 business days.
Pros and Cons of a Illinois LLC
Advantages
- Chicago's world-class business ecosystem
- Franchise tax repealed (2024)
- Major logistics hub
- Diverse economy with strong tech
- Numerous Fortune 500 HQs
- Strong legal framework
- Extensive professional services
Disadvantages
- $150 filing fee (above average)
- $75/year annual report
- 4.95% flat income tax
- High combined sales tax
- Higher cost of living (Chicago)
- Complex local tax jurisdictions
Our Pricing: Illinois LLC Formation
Domestic Filers (US Residents)
$249 service fee + $150 state filing fee
International Filers (Non-US Residents)
$349 service fee + $150 state filing fee
Every formation package includes:
- Articles of Organization filing with Illinois Secretary of State
- One year of registered agent service in Illinois
- Custom Operating Agreement
- EIN application
- Banking introduction letter
- Digital document delivery within 24 hours of state approval
- Compliance calendar with all filing deadlines
- Dedicated support via email and WhatsApp
Form your Illinois LLC today
$399 all-in for US residents. $499 for international. No hidden fees.
Start My Illinois LLC →Over five years: $525 ($150 filing + 5 x $75). Comparable to Wyoming ($510) but with access to a much larger economy.
Comparing states? Read our Wyoming vs Delaware comparison guide for the full breakdown of top formation states.