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.

For those considering the creation of an Illinois LLC, there are several important factors that must be taken into consideration. These include the costs of forming an LLC, filing an operating agreement, and maintaining an LLC. You should also learn how to choose an appropriate name and whether or not you need to register your business with the state of Illinois. Once you have made the decision to form an LLC, you will need to hire a registered agent, file articles of organization, and maintain an annual report.

Choosing an effective operating agreement is a great way to protect your assets, avoid lawsuits, and ensure that your LLC is in compliance with Illinois laws. An operating agreement is a legal contract between your LLC’s members and managers. It outlines the rights and duties of all members and details their management roles. To create an effective operating agreement, it’s a good idea to hire a lawyer or legal firm. The costs can vary depending on the services offered by the lawyer or legal firm. However, it is estimated that a typical single member operating agreement will cost between $500 and $2,500.

As a result of the ongoing tasks involved with maintaining an LLC, you will need to pay taxes. This includes income tax, payroll taxes, and sales tax. In Illinois, the sales tax is 6.25%. Additionally, you will need to pay federal and local tax. Although this may seem like a lot of fees, these are actually relatively small in comparison to the fees associated with setting up a corporation or limited liability partnership.

Whether you have a standard LLC or an operating agreement, the Illinois Secretary of State requires that you submit an annual report. If you do not submit your report, you will incur a $100 penalty. Fortunately, you can find a service that helps you to file your report online. There is also a hard copy option.

You can also choose to hire an individual or an agency to act as your registered agent. These individuals and agencies are responsible for ensuring that your business is in compliance with the state of Illinois and that legal matters are handled correctly. Registered agents are required to have a physical address in the state of Illinois. Your company’s registered agent must be available during regular business hours. A registered agent can be an employee, another LLC member, or a professional agency.

There are also other costs associated with operating an LLC. For example, the Illinois Department of Revenue charges a tax of 4.95% on LLC income. This fee will be a part of your company’s annual bottom line. The state also charges a penalty of $100 for failing to pay within 60 days of the deadline.

Whether you’re forming an LLC or planning to expand your business, it’s important to consider the costs of registering and maintaining your LLC. While there are some one-time costs, most are ad hoc fees that you only need to pay in certain circumstances.

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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