LLC Cost in Illinois – How Much to Pay for an LLC


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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.

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.

LLC Service

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$99 per year

  • Standalone registered agent service

  • Take you through all steps

  • LLC formation package available

$125 per year

  • 1 year free service along with LLC formation package

  • Fast service

  • Flat rate, no hidden cost

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:

StateFiling FeeAnnual Fee/Biennial FeeSales tax
Illinois LLC$150$756.25%
Wisconsin LLC$170 (mail)$130 (online)$255.00%
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)none4.225%

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

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.

There are several different types of fees that will need to be paid when you create an LLC in Illinois. These fees will vary based on your particular circumstances, but they will generally include state, local and federal taxes. In addition, there are likely to be sales and self-employment taxes that your business must pay. For more information on the various fees, check out our article on how much it costs to create and maintain an LLC in Illinois.

Once you’ve formed your LLC, you’ll need to file an annual report with the Secretary of State. This report is required for all businesses that operate in Illinois and includes similar information to your articles of organization. You can either file the report online or mail it in. The filing fee is $75, or $50 if you’d prefer to file the report on an expedited basis. In Illinois, annual reports are due on the first day of the month your LLC’s anniversary.

The annual fee for a business license in Illinois is $250. Once you’ve registered an LLC, you’ll need to pay an annual fee to the Illinois Secretary of State’s office. It’s also important to note that the legal name you choose for your business cannot conflict with another entity that has registered a similar name. Therefore, you should check whether the name you want to use is available before you file.

While you can form an LLC for under $150 in Illinois, you’ll need to keep track of it. The Secretary of State’s website has a list of all the fees you’ll need to pay. Filing an annual report is essential, and you can file the form online or by mail. The filing fee for annual reports is $75; if you fail to do so, you’ll be charged a $100 delinquency fee.

Once your LLC is created in Illinois, you’ll need to choose an operating agreement, which outlines the structure of the business. Having an operating agreement outlines who owns what, and what they do and don’t. It also protects all members and sole proprietors. Lastly, you’ll need to choose a registered agent. You’ll need to choose a registered agent if you want to maintain an LLC in Illinois.

Depending on the size of your business, you might need to hire an accountant or a registered agent to help you keep your company up to date with the laws. A good accountant will cost you between $2,000 and $3,000 per year. If you have a lot of clients, a registered agent will ensure that your company stays in compliance with Illinois laws. A registered agent will also remind you of important deadlines.

In addition to the state income tax, Illinois has other fees that your business may have to pay. A limited liability company must file annual reports with the secretary of state. The state also requires you to pay yearly renewal fees. The state is known for its high tax burden and many small businesses are choosing to incorporate in Illinois. If you’re considering starting a business in Illinois, the average cost of LLC registration is only $150.

F.A.Qs

Can I start an LLC for free?

It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.

Is an LLC expensive?

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.

Does an LLC need a bank account?

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.

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