Launching your limited liability company in Illinois? You must consider two ways to do that. The first option is to do it yourself. From searching your LLC name to filing it, from hiring a registered agent to filing the formation document, everything should be done correctly! The second and more feasible option is to hire a professional service to do everything on your behalf and help you form your LLC in Illinois.
On this page, You'll find all the steps that must be taken to ensure that your Illinois LLC has been correctly formed. Besides, you will know which service is best to have. You can also watch our video tutorial, which is shared below. :)
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How to Start an LLC in IllinoisAfter Starting Your Illinois LLCIllinois Foreign LLCIllinois LLC Formation ReviewF.A.QsHow to Start an LLC in Illinois
An LLC (aka Limited Liability Company) is a hybrid business entity combining a corporation’s characteristics with a partnership or sole proprietorship. It separates your personal assets from your business assets, thus giving you personal asset protection. For an LLC, members' personal assets are not affected by business debts. However, in some cases, if the LLC is sued for business debts, courts might pierce the corporate veil and use the owner's personal assets to meet the corporation's liabilities.
If you wish to start an LLC, you must file your Articles of Organization with the State and pay a filing fee of $150. While it's the most important step, it's not the only one. There are 4 other crucial steps to follow to get your LLC formed in Illinois. Below are all 5 steps that explain everything you need to do to start an Illinois LLC in 2026. Let's get started!
Step 0Decide on the Structure and Nature of the Business
Before you start filing your LLC in Illinois, you must decide on the structure of your LLC (whether it is a Single-member or a Multi-member LLC). A single-member LLC is a business structure where only one individual runs the company. This type of limited liability company (LLC) provides legal protection to its owner and enables them to operate their business while taking advantage of certain tax benefits. In contrast, a traditional multi-member LLC must have at least two members involved in the company’s management and ownership.
For both types of structures, the process of establishing is the same in Illinois. The tax burden might be different if you chose a different tax structure while filing the Articles of Organization.
LLC vs S-Corp
An LLC is a business structure that has the right to elect any tax structure. Despite having a pass-through tax advantage, many LLCs, for several reasons, elect a different business structure for tax purposes. An S-Corp is one of those business structures that LLCs can elect. The S-Corporation is a type of corporation that is less complicated than a C-Corporation and has vast tax benefits.
With an S-Corp, the LLC can still enjoy a pass-through taxation. However, the federal income tax will be calculated on the basis of the salary of the owner and the return he/she gets on their share of the company. There is no corporate income tax or problem of double taxation in an S-Corp. A single-member or a multi-member LLC can elect an S-Corp tax structure. However, in the case of a multi-member LLC, make sure that the number of members does not exceed 100 to be an S-Corp.
If you have a single-member LLC, electing an S-Corp can save a chunk of tax for you. As a single-member LLC, the owners have to pay about 15.3% self-employment tax. However, if you have an S-Corp tax structure, no SE tax is payable by the LLC. Read more on what tax forms LLCs file.
Step 1Decide on a Name for Your Illinois LLC
The first step in forming a limited liability company in Illinois is to give a proper name to your LLC. Before you name your business, you must know that the name should be easy to remember, available in the state, and follow all the LLC naming guidelines.
LLC Naming Guidelines in Illinois
There are a few specific requirements all the LLCs in Illinois have to follow while naming their Company. Some of the most important requirements are as follows:
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Your business name should be available, and no other existing business in Illinois can have the same name.
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"Limited Liability Company", "LLC", and "L.L.C." - any one of these has to be used as a suffix in your business name.
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You cannot use any name for your business that is confusing or misleading. Terms such as "Treasury", "State Department", "FBI", "CIA", etc. shouldn't be included.
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Terms like "Bank", "University", "Attorney", "Doctor", etc, can be added only after the additional requirements by the Illinois State Government are fulfilled.
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(Optional) It's better to name your business something for which your desired domain is available.
| Important Links - | Submit Offline Form to - |
|---|---|
| Illinois Business Entity Search - Online Name Search Name Reservation Form - PDF Illinois LLC Name Search Guide - Instructions | Department of Business Services Limited Liability Division 501 S. Second St. Rm. 351 Springfield, IL 62756. |
Reserve Business Name for Future
If you do not wish to file your LLC right now, but want to hold the name you have decided on, then you can reserve your LLC name for 90 days. To keep the name, you must file a name reservation application and pay $25 to reserve your name with the Illinois Secretary of State.
Doing Business As (DBA) or Trade Name
Once you have a legal name for your LLC, you can register it. However, it is not mandatory. You can, instead, use DBA, Fictitious Name, or Trade Name. In that case, you must register your name with the Illinois Secretary of State by submitting an Assumed Business Name Registration (online) and the filing fee of $120.
Do I have to include LLC in my company email/domain?
It is not legally mandatory to use the word LLC in your domain name or email. If you want, you can use it. However, it is recommended not to use LLC in the domain name. A domain name should be short and easy to remember.
Step 2Assign a Registered Agent in Illinois
The second step to forming an LLC in Illinois is to appoint a Registered Agent. A registered agent is a person or business entity working on your LLC's behalf. This person or business will receive important tax forms, legal documents, all notices of lawsuits, and other official government correspondence in Illinois. Hence, hiring a competent Illinois Registered Agent for your LLC is necessary.
Make sure your registered agent is a resident of Illinois or has a physical street address. This address will be used as the principal address of your LLC to receive any legal documents. Most LLC formation companies also provide registered agent services. Below are two great LLC formation services; even if you buy their cheapest plan (normally $0), you also get registered agent service and other services at a very reasonable price.
- 1-day rush filing (add-on)
- Attorney help (legal plan)
- Established reputation
These two are our top recommendations for LLC service, as they are competent and authorized to conduct business in Illinois. Some LLC formation services also offer standalone Illinois registered agent services. You can purchase only Registered Agent services without purchasing any other LLC formation services. This standalone service might become handy if you are doing it yourself and don't want to disclose your home address, or you don't want to pierce the corporate veil.
Who Can Be a Registered Agent?
A person above 18 years of age and who has a physical address in the state of Illinois can be a Registered Agent. A Registered Agent can be an independent person, a business entity, or a representative of a foreign corporation. One is responsible for handling all the legal documents on the LLC's behalf.
Can I Be My Own Registered Agent?
Yes, you can be your own registered agent if you are a resident of the state of Illinois and you are above 18 years of age. To become a registered agent, you must have the authority to conduct any type of business in Illinois.
Why Shouldn't I be My Own Registered Agent?
There are a few reasons why you shouldn't be your own registered agent. The address of the registered agent is used to communicate with the SOS or for any legal activities. If you are your own registered agent, you might have to upload your personal address to the public forum. Besides, the registered agent must be at the address during business hours. It won't be easy for you, as you also have to take care of other things in your LLC. Hence, it is wiser to appoint a separate entity as your registered agent.
What is Piercing the Corporate Veil in an LLC?
If an LLC is sued in Illinois, in some cases, courts might decide to lift the corporate veil, which means the owners of the LLC will be personally liable for their business debts. They might have to forgo their personal assets to repay their business debts. This is called piercing the corporate veil, where personal and business assets are no longer separated. Your personal assets can be protected if you have enough capital and all your LLC documents are properly filed.
Step 3File Articles of Organization in Illinois
The third and most important step in forming an LLC is to file the Articles of Organization. The Illinois Articles of Organization is a legal document that is required to register your business with the Illinois Secretary of State. It costs $150 to file your formation certificate in Illinois.
The articles of organization include details like the name of the LLC, the registered agent's name, address, employees' details, and company structure (member-managed or manager-managed). Before hiring employees in an Illinois LLC, one should thoroughly know the rules and regulations. Also, if you are expanding your existing business (an LLC) in other states to Illinois, you must register as an Illinois Foreign LLC.
How to File Online
Go to the Secretary of State Online Service. You will get the online service page. If you have your credentials, then log in to the portal to file your LLC online. You can click on the button below to file online. Read more about the Illinois Articles of Organization for online registration.
How to File by Mail
If you prefer filing real-life forms for your LLC registration in Illinois, you can download Form LLC-5.5. Read the form thoroughly, fill it out, and send it to the address mentioned below.
Mailing Address: Dept. of Business Services, LLC Division,
501 S. Second St., Rm. 351,
Springfield,
IL 62706
Processing Time: Normally, it takes around 10 business days (approx) to get your LLC formed in Illinois. By paying an additional $100, you can get it processed within a day (24-hours). However, the document processing time can be changed due to various factors.
Step 4Create Your LLC Operating Agreement in Illinois
Moving on to the fourth step, filing your operating agreement. An operating agreement is an internal document that legally outlines the proprietorship and operating procedures of your LLC. This document is vital as it ensures that all business owners are on the same page regarding how they operate, thus reducing future conflicts.
When it comes to filing an Illinois LLC Operating Agreement, the state does not require you to have a comprehensive operating agreement, but it is ideal to have one that contains all the details of your business operation, which helps in making future business decisions, especially if you decide to dissolve your Illinois LLC later. Hence, having an operating agreement may not be necessary, but it is ideal.
Step 5Filing an Illinois LLC EIN
The Employer Identification Number (aka EIN) is a nine-digit number given by the Internal Revenue Service (IRS) to make it easier to identify the type of business for tax purposes and taxes in general. The EIN is necessary for any active business or any form of business, for that matter.
For an LLC in Illinois, an EIN is required when the LLC hires employees. Apart from that, banking services, tax filings, and many other government documents require an LLC to obtain an EIN in Illinois. On the other hand, if your LLC is based in another state (home state) and you are expanding your business in Illinois, you must get an EIN to establish a Foreign LLC in Illinois.
To obtain an EIN (aka FEIN), one must fill out a form (Online or by mail) and submit it to the IRS. Enter details of your LLC, and finally, complete the form and send it to the address given. You can also get an EIN Assistant to help you with the process.
Mail to: Internal Revenue Service, Attn: EIN Operation, Cincinnati, OH 45999
Fax: (855) 641-6935 | Fee: Free
After Starting Your Illinois LLC
After forming your LLC, there are still some things that you will need. The most important thing is to separate your business and personal assets. LLCs have limited liability protection that protects your personal assets from business liability. This is called a corporate veil. However, the corporate veil can be lifted or pierced by the court if the LLC is sued. In that case, the owners of the LLC become personally liable for their corporate debts. A few things, like appointing a legit registered agent, having enough capital, and filing all the major documents with the state, can save the LLCs from being pierced through the corporate veil.
BOI Report Filing
According to the Corporate Transparency Act, foreign entities registered to do business in the U.S. must file a BOI report with FinCEN. However, note that as of March 26, 2025, FinCEN issued an interim final rule removing BOI reporting requirements for all domestic U.S. companies and U.S. persons. If your LLC was formed under U.S. law, you are currently exempt from BOI filing obligations — consult the FinCEN BOI page for the latest guidance, as this regulatory area remains subject to change.
Apart from that, there are a few things you need to take note of,
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Get a company business bank account. Along with a business bank account, get a business credit card, business accounting tools, and other tools to check revenues and business expenses. Get all business accounts to proceed.
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When you get your business credit card, check your business credit score. For any business, a business credit score is essential.
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File Illinois business permits & licenses. For any formal or informal business structure, it is important to have proper details of business licenses. To run legitimate businesses, one must have proper licenses. Make sure to pay fees for business licenses on time to avoid any discrepancies.
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Get general liability insurance and professional liability insurance with coverage for employees. There are a number of business insurance companies. With a proper business insurance provider, you can conduct your business with ease in Illinois. There can be various types of business insurance. Choose the one that is suitable for your organization.
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File an Illinois LLC annual report.
This page has provided you with steps for LLC formation and filing processes. You now have to remember upcoming filing deadlines and filing fees or filing costs, including fees for late filings, to make sure your LLC is up-to-date. Along with the filing fees, make sure to pay fees for business licenses to renew them on time.
The LLC formation processing time in Illinois is 10 business days. Check how long it takes to form an LLC to know about the tentative timelines.
Cost of Starting an LLC in the State of Illinois
LLCs can be formed for a very low price. Apart from the mandatory state filing fees, you don't have to bear additional service charges if you do it yourself. The following are the fees and taxes LLCs in Illinois must pay to register and run a business in the state. Forming an LLC is no doubt cost-effective compared to other business structures. However, the fees and charges (tax-deductible) that you must pay to the state, such as name reservation fee, name filing fee, LLC filing fee, and Sales Tax (If applicable). Here are the main fees and taxes you must pay while forming your limited liability company in Illinois,
| Fees/Tax | Amount to be Paid |
|---|---|
| Name Reservation Fee | $25 |
| Articles of Organization Fee | $150 |
| LLC Annual Fee | $75 |
| Sales Tax | 6.25% |
In Illinois, an LLC name reservation is not mandatory. You can register your LLC name at the time of registering your LLC. If you wish to hold the name for some time without registering your LLC, you can do that online. Your LLC name will be reserved for 90 days without registering your LLC. It can be done by paying $25.
In Illinois, an Annual Report has to be produced every year. It costs $75. Also, the LLC has to pay 6.25% of Sales Tax to the state government. Read our guide on LLC costs in Illinois for more information.
Illinois Foreign LLC
If you are interested in forming a Foreign LLC in the state of Illinois, then you need to file the Certificate of Foreign LLC with the Illinois Secretary of State. Foreign LLCs allow you to operate your business in more than one state. Along with the Certificate of Foreign LLC, you need to submit some more documents, like the Certificate of Good Standing, etc., to the Illinois SOS to form your foreign LLC in the state of Illinois. To know more in detail, check out our guide on Illinois Foreign LLC.
Illinois LLC Formation Review
Time needed: 5 minutes.
Just to recap, here are the easy steps again when forming an LLC in Illinois. Click on the steps in this list to read the full details.
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The first thing you must do is to choose a company name, which should be unique, easy to find, and available in the state.
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In Illinois, it is mandatory to select a registered agent for your LLC. Get a professional Registered Agent from LLC formation services to get things done hassle-free.
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Filing a formation certificate is necessary when forming a limited liability company in Illinois. Depending on the state, it could be called any of the following: Certificate of Formation, Articles of Organization, or Certificate of Organization.
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An operating agreement is not a strict requirement in Illinois but something encouraged when you start an LLC to avoid future conflicts.
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The Employer Identification Number (EIN), also called Federal Tax Identification Number, serves to identify a business entity like a social security number but for a company.
Things to Consider While You Start an LLC in the State of Illinois
In this article, basic steps are explained in brief about the LLC formation process in the state of Illinois. However, there are a few basic things that one has to keep in mind while starting a business in Illinois.
As soon as your LLC is formed, you must consider a handful of things, such as deadlines. For example, upcoming filing deadlines, deadlines for tax filing, other government filings, and so on. You must be updated with the filings, especially government filings, to avoid late filings fees. You must get business tax accounts to pay business taxes for LLC. There is no direct income tax on LLC's business income. However, there are other taxes to be paid.
To form an LLC, along with filing fees, you must pay federal income taxes and some other business taxes. So, it is definitely not absolutely free. As you are about to start your LLC, you must have a business plan. Your business plan should have all requirements so that you can be prepared for all types of business challenges. As soon as you have a solid business plan, you can move further to bank applications for funding, etc.
In Illinois, women entrepreneurs or first-time entrepreneurs can enjoy more tax benefits than others. LLC is a simple business structure to start with. If you're a new entrepreneur, it is more profitable for you to start an LLC than a traditional corporation. As soon as the LLC is set up, your company must be up-to-date with coverage for employees if you hire employees. On the other hand, file employment taxes for your professional employees.
In Illinois, there is no mandatory rule to submit an operating agreement. It was mentioned above. However, it is useful to have this operating document along with formation documents. You can read the operating agreement guide to know more about its importance. Operating agreements have the name and share of the manager, the authority of manager, and also the names and shares of initial managers.
To form an LLC, you can apply online/by mail. The online application takes less time than filing by mail or any other way. The entire process takes a day or two. With the LLC formation service providers and their excellent customer care service, it is even easier to start your LLC.
F.A.Qs
Can I file an LLC in Illinois by myself?
If you are a resident of Illinois, then you can file your LLC by yourself. However, if you're new to the world of business, it might be easier having a professional than doing it yourself to handle legal complexities, paperwork, and other documentation.
What is the cost of forming an LLC in Illinois in a year?
Apart from the formation fee of $150 (domestic LLC) and $150 (foreign LLC), LLC costs in Illinois include $75 for Annual Reports every year. LLCs are liable to pay sales tax of 6.25% every year
How long does it take to get an LLC in Illinois?
It takes 10 business days to get an Illinois LLC if you file it online or via mail. The processing time can be expedited (24-hours) with an additional pay.
How to renew my LLC in the state of Illinois?
Every year all the LLCs have to submit an Annual Report and pay $75 to the Illinois Secretary of State and renew the LLC. It is mandatory to renew your LLC every year.
What is the tax structure for an LLC in the state of Illinois?
Generally, for LLCs, it is a default tax structure. Once you obtain the EIN, you will get the various tax structure options to select. Sometimes LLCs choose S Corp to reduce federal tax burdens. Read more on the Illinois Classification of LLC Tax.
In Conclusion
When it comes to forming an LLC in Illinois, it is much simpler than other business structures. In Illinois, starting a small business or a start-up is easy because of its diverse resources. For small budget holders, forming a limited liability company is desirable. The steps explained in this article are generic steps for starting a business in Illinois. It is recommended to consult an attorney or service provider.