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.
LLC Service | Our Rating & Pricing | Top Features | Learn More |
#1 TOP PICK  | $0 + State Fees |
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 | $299 + 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.
Limited Liability Companies, or LLCs, are a popular business structure in Illinois because they offer the advantages of both corporations and partnerships. These advantages include tax flexibility and personal liability protection. However, starting an LLC is not the only step. In order for an LLC to remain active and in good standing, it must be properly maintained. This maintenance often incurs costs, which can vary depending on the services used and the business’s specific needs.
One of the most important maintenance costs for an LLC is the annual report filing fee. This fee is mandatory and must be paid every year to the state. The annual report includes basic information about the business, such as its registered agent and principal office address. In most cases, the annual report fee is relatively low, but it’s important to pay it on time in order to avoid additional late fees.
In addition, there may also be costs associated with maintaining any licenses or permits required for the specific type of business. For example, some businesses may need to obtain a special license to sell alcohol or cigarettes. These licenses typically require renewal on an annual or biennial basis, which can add additional maintenance costs to the LLC. Failure to maintain these licenses can result in serious penalties and disruptions to the business operations.
Other maintenance costs may come in the form of professional services rendered by attorney or accountant. For example, LLCs might hire accountants to handle their tax filing needs. Such tasks could include preparing and filing the business’s federal and state tax return. Hiring an attorney may likewise be useful when processing legal paperwork for the company’s major changes. For example, owners may choose to engange services of attorney during share redistribution, investment, or official shifts in the leadership management. Expert knowledge and advisers are sometimes necessary for avoiding legal disputes or preventable losses in times of organizational decisions or transmissions.
Obtaining a good insurance policy could also be beneficial that could be valuable in these costly and uncertain times. Unlike procedures with salaried employees, goods, and merchandise, these kinds of payments don’t guarantee returns. However, minimal investments in maintenances can lead to mitigating or changing scenarios your expectations heading up to absolute satisfaction.
It may seem like some of these costs are unnecessary or avoidable, bear in mind, this thought isn’t judicious. Essentially, the incurred costs vary with different businesses which means plans and strategies evolving from hiring reasonable amounts skilled accountants, tax consultants, or even informative sources online to adapt to different requirements without threatening beneficial impacts of the organization operations and future plans. Rather focusing on upfront costs, money and time involved in maintaining a living corporation done effectively guarantees future financial freedom.
In sum, though filing annual reports, maintaining proper licensing and permits and getting professional services could be costly regarding maintaining a living LLC, it’s not beneficial to avoid these procedures or cut spending that maybe necessary. Unnecessary hikes can happen on failing to take these pathways while trying to upkeep finances thereby rekindling any corrupt lapses from improper management and administrative system. Incorporating into trustworthy practices may necessarily incur costs quite a significant amount but taking steps to manage and decrease these costs to a worthy and viable level would always require the right suggestion from regulatory strategies. Overall price of upkeep varies with different businesses, but necessary judicious techinques weighed between mordern automated systems and human assistance peradvertisements necessary to launch an effective course of action. Results related achieving maximum financial statutory seems attainable than the efficiency allowed by letting IRS regulate it for you.
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