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.

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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.

If you’re planning to start a business in Illinois, you’ll need to register your business and choose a name. Make sure to check that the name you want is available and will not already be in use. The filing fee for an Illinois LLC is $150. You may also be required to provide certain documents to verify compliance with state regulations.

The first step is to file articles of organization with the Illinois Secretary of State. You will also need to pay a $150 registration fee. After you’ve filed your articles, you’ll need to file your annual reports with the state. In addition, you’ll also need to pay 6.25% sales tax, 4.95% income tax, and federal taxes. All these costs can add up to hundreds of dollars a year. If you choose to file your articles in Illinois using an online service, you can save money and avoid the hassle of submitting them yourself.

Filing your annual report is an important part of your business’s annual maintenance. You must file this report with the Illinois Secretary of State at least once a year, or you’ll be charged up to $100 if you fail to file it on time. An online service, such as Incfile, can help you file your reports. The state will send notifications about these reports, and you can even change your business’ address if you need to.

The fees for an LLC in Illinois vary depending on its type of business. A standard LLC is required to pay a 1.5% tax, depending on where you do business. Additionally, your LLC is required to pay sales and self-employment taxes to the state. To get a tax ID, you can use Incfile.com, which is an online service that can help you obtain this number for free. Additionally, you should obtain an Illinois Foreign Qualification (IFQ), which will allow you to do business in the state as a foreign company.

In Illinois, filing an LLC’s Articles of Organization (form LLC-5.5) is required to register the business with the state. There is a $150 fee to file an LLC in Illinois, but the cost of doing so online is much lower than the costs of hiring an attorney. Additionally, your business’s EIN will be required when you apply for a bank account, file federal taxes, and hire employees in Illinois. You can download the form for your Illinois LLC from the IRS website.

Before forming an LLC, you should make sure that you’ve selected a name and chosen a registered agent. In addition, you’ll need to reserve the name for 90 days. This fee is non-refundable. However, it will be worth it in the long run. You will have the peace of mind that you’re not wasting money on a name that you don’t like.

Another expense to consider is the annual filing fee. This fee is lower than that of other business forms. You’ll also need to pay taxes every year and a registered agent fee. The cost to register an LLC in Illinois is lower than that of forming a corporation in other states. Moreover, the state income tax is extremely friendly to small businesses.

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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