Perhaps you are hoping to form an Illinois LLC. People assume that starting an LLC is difficult and costly. However, it’s generally not difficult, and the cost would vary across states. We have all the info you need to know about the cost of forming an LLC, particularly the LLC cost in Illinois.
On this page, you’ll learn about the following:
Illinois LLC Cost of Filing
Here are the costs involved in forming an LLC in Illinois.
Cost of Filing Formation Certificates
The Illinois Certificate of Formation is responsible for the majority of the cost, which could also vary depending on whether you’re forming a domestic LLC or a foreign LLC. Still, you can file both at the Illinois Secretary of State.
Illinois Domestic LLC
- Online filing costs $150
- Annual Report filing costs $75
- Name Reservation fee costs $25
- By Mail: Fill out the Application Form PDF and submit it to the following address: Department of Business Services, Limited Liability Division, 501 S. Second St., Rm. 351, Springfield, IL 62746, costs $150
Illinois Foreign LLC
- Online filing: Not available
- Annual Report filing costs $75
- Name Reservation fee costs $25
- By Mail: Fill out the Application Form PDF and submit it to the following address: Department of Business Services, Limited Liability Division, 501 S. Second St., Rm. 351, Springfield, IL 62746, costs $150
Note that filing online is ideal, not only because you need to go to the Secretary of State office, but also it would be faster. You won’t have to wait in a queue in doing so.
Illinois LLC Formation Service or Registered Agent Fee
You need a registered agent to form an LLC in Illinois, hence, added costs for service fees. Here are three of the best LLC services on our list that will provide you with registered agents to ease your worries.
Business Permits and Licenses
The business licenses depend on your business’s activity and location and are renewed yearly. As such, the cost will vary. Check Illinois’ Registration, Licenses, and Permits website for further information, or you can also go to the Illinois Department of Financial and Professional Regulation website.
Illinois LLC taxes to be Paid
The business LLCs in the State of Illinois are subject to different State tax filing obligations. Though the fees may vary from county to county.
Illinois State Income tax
This is the State Tax levied on any income you pay to yourself. The standard tax rate in the State is 4.95% levied on the total amount of taxable income.
Illinois Sales Tax
The standard rate of sales tax applicable is at the rate of 6.25%. Though the taxes may vary depending on the county and city.
Illinois Federal Self-employment tax
Any profit that an Illinois LLC Business members draw out from the business is liable to pay self-employment tax. The standard tax rate is 15.3%.
Illinois Payroll Tax withholding
If you hire employees in Illinois, you must withhold payroll tax from their salaries. The standard rate of withholding is 7.65% of the taxable salary of the employees.
Cost Comparison Among States
Every state has different costs of filing for an LLC to their respective State Authorities. If you wish to gain a better understanding of the costs of opening an LLC in a different state in comparison to Illinois, read the table below:
State | Filing Fee | Annual Fee/Biennial Fee | Sales tax |
Illinois LLC | $150 | $75 | 6.25% |
Wisconsin LLC | $170 (mail)$130 (online) | $25 | 5.00% |
Indiana LLC | $100 (mail)$95 (online) | $50 (mail) (biennial)$31 (online) (biennial) | 7.00% |
Kentucky LLC | $40 | $15 (annual) | 6.00% |
Missouri LLC | $50 (online)$105 (mail) | none | 4.225% |
The State of Illinois has a very diversified economy, ranking as the 5th largest GDP in the U.S. The major contributing sectors are business services, advanced manufacturing, education, agriculture, energy, and biotechnology.
Other Costs
- Illinois Name Reservation: $25 for both online filings or by mail or $50 for expedited processing
- Doing Business As (DBA): The online filing fee or by mail differs depending on the year of application. The cost is $150 if the current year ends with 0 or 5; $120 for year ending with 1 or 6; $90 for year ending with 2 or 7; $60 for year ends with a 3 or 8; or $30 if the year ends with 4 or 9.
- Certified Document Copies: $25.
- Certificate of Good Standing: $25
- Business Domain Name and Website: depend on your preference, but domain name could be as low as $2.99/yr at NameCheap, and web hosting is at least $30/mo at Kinsta.
- Online workspace: at least $4.20/mo for GSuite.
- Business Insurance: would vary depending on insurance type–whether general liability insurance or professional liability insurance–and coverage.
- Dissolution of Illinois LLC: $5
How Much Does It Cost To Maintain An Llc In Illinois
To maintain an LLC in Illinois you will need to pay an annual fee of $75 along with sales tax at 6.25%, income tax at 4.95% and federal taxes.
When considering the cost of maintaining an LLC in Illinois, there are several factors to take into account. One of the primary expenses is the filing fee required to establish the LLC in the first place. This fee can vary depending on the state in which the LLC is being formed and the type of business entity being created.
In addition to the initial filing fee, LLCs in Illinois are required to pay an annual report filing fee to the Secretary of State. This annual fee is necessary for keeping the LLC in good standing and is essential for maintaining the legal protections afforded by the LLC structure.
Another essential cost to consider when maintaining an LLC in Illinois is the cost of taxes. LLCs are pass-through entities, meaning that the profits and losses of the business are passed through to the owners and reported on their individual tax returns. This can lead to potentially higher tax obligations for the owners of the LLC, depending on their income levels.
Additionally, owners of LLCs in Illinois are required to pay a state business registration fee, which is necessary for maintaining the LLC’s status as a business entity in Illinois. While this fee may seem small compared to other expenses, it is still an essential cost to consider when budgeting for the maintenance of an LLC.
Beyond these standard costs, there are other potential expenses associated with maintaining an LLC in Illinois, such as legal fees, business insurance, and accounting services. These costs can add up quickly and should be factored into the overall budget for running an LLC in the state.
It’s essential for owners of LLCs in Illinois to budget accordingly for these maintenance costs and ensure that they are paid on time to avoid any potential legal consequences. Neglecting to pay the required fees and taxes can result in the LLC falling out of good standing with the state, which can lead to penalties, fines, and even a loss of legal protections.
Ultimately, while the costs of maintaining an LLC in Illinois can add up, they are a necessary investment for protecting the business and ensuring its longevity. By carefully budgeting for these expenses and staying organized with filing deadlines, owners can successfully navigate the financial obligations of running an LLC in Illinois.
F.A.Qs
It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.
It is difficult to say whether forming an LLC is expensive. Nevertheless, the cost could be anywhere from $40 to $500. If you refuse to hire professionals, you’ll still have expenses like form fees to cover.
The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.
In Conclusion
The cost of Illinois is much lower compared to other forms of business. Apart from the state filing fees and annual taxes, you might bear the cost of the registered agent. Compare the price of professional LLC services and choose the most affordable one.
The price was $65.00 a year ago for Illinois