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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 | Our Rating & Pricing | Top Features | Learn More |
#1 TOP PICK
 | $0 + State Fees |
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 | $39 + State Fees |
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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:
| 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.
One of the primary costs of maintaining an LLC in Illinois is the annual report and franchise tax fee. Every LLC operating in the state is required to file an annual report with the Illinois Secretary of State and pay a franchise tax based on the company’s net income. Failing to do so can lead to penalties and potential dissolution of the LLC. These fees can vary depending on the company’s earnings and structure, so it’s essential for business owners to budget accordingly and stay up to date with their filing requirements.
In addition to the annual report and franchise tax fee, LLCs in Illinois may also incur other costs such as registered agent fees, business license fees, and potential legal fees. A registered agent is someone designated to receive legal documents on behalf of the LLC, and while individuals can serve as their registered agent, many choose to hire a third-party service to ensure compliance and efficiency. Furthermore, certain industries in Illinois require specific business licenses or permits to operate legally, which can add to the overall expenses of maintaining an LLC.
Moreover, business owners should also consider the cost of compliance and ongoing maintenance associated with running an LLC in Illinois. This includes tasks such as maintaining accurate financial records, holding annual meetings, and adhering to state regulations and reporting requirements. While some of these responsibilities can be managed internally, many companies opt to outsource tasks to legal or financial professionals to ensure everything is done correctly and in a timely manner.
Additionally, businesses operating as LLCs in Illinois should also be prepared for unexpected costs such as legal disputes, employee benefits, or unforeseen expenses. Having a financial cushion set aside can help companies weather any challenges that may arise and ensure long-term sustainability.
Overall, the cost of maintaining an LLC in Illinois can vary depending on numerous factors such as company size, industry, and financial situation. Entrepreneurs and business owners should carefully consider all expenses associated with running an LLC in the state and factor them into their budgeting and financial planning. By being proactive and staying informed about their obligations, companies can successfully navigate the costs of maintaining an LLC in Illinois and position themselves for success in the competitive business landscape.
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.