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.

Maintaining an LLC involves multiple expenses that may vary depending on the specific requirements and circumstances. While Illinois offers a diverse array of opportunities for entrepreneurs looking to establish an LLC, it is important to be aware of the potential costs involved.

One of the initial considerations when forming an LLC in Illinois is the formation fee. Entrepreneurs need to file the Articles of Organization with the Secretary of State and pay the required fee, which is updated periodically. These fees may range in proportion, with different rates for expedited filings. It is essential to factor in this cost when starting an LLC, as it includes necessary legal compliance procedures.

In addition to the formation fee, aspiring business owners must also be mindful of the ongoing costs associated with maintaining an LLC. Among these are annual report fees, which must be submitted to the Secretary of State by a given deadline each year. Like formation fees, the cost of submitting annual reports might fluctuate based on the revenue or the current regulations and requirements.

Another important ongoing expense is licenses and permits, which vary depending on the nature of the business. Different industries and occupations may require specific permits within Illinois, and understanding the necessary licenses is essential to operate legally. Associated costs are varied, contingent on the type of license or permit required for the business.

Illinois also has certain taxation aspects that should be considered when looking at the cost of maintaining an LLC. Business owners are required to obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS), which typically incurs no cost. However, depending on the nature and scale of the business, various state and local taxes might be applicable. The complexities of tax regulations make it crucial for business owners to consult with professionals to accurately estimate these costs.

Moreover, it’s worth noting the potential legal costs that may arise throughout the lifespan of an LLC in Illinois. Engaging an attorney can provide guidance, especially in situations that require changes to the LLC’s structure, operating agreement, or resolution of legal disputes. While these costs may vary based on the individual needs and circumstances, they are an essential consideration to maintain the efficacy and legality of the LLC.

Maintaining an LLC in Illinois necessitates adequate financial planning and careful consideration of the associated costs. Entrepreneurs contemplating an LLC should be mindful of the formation fees, ongoing administrative expenses like annual report fees, licenses and permits, taxation requirements, and potential legal costs. By thoroughly understanding and planning for these expenses, aspiring business owners can navigate the process effectively and ensure transparency in their financial commitments.

To summarize, potential surprise costs can catch business owners off guard when maintaining an LLC in Illinois. It is crucial to explore and anticipate the financial obligations at each step of running the business. Seeking professional consultation and guidance can help entrepreneurs more accurately estimate and navigate the expenses involved.

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.


About Author & Editorial Staff

Steve Goldstein, founder of LLCBuddy, is a specialist in corporate formations, dedicated to guiding entrepreneurs and small business owners through the LLC process. LLCBuddy provides a wealth of streamlined resources such as guides, articles, and FAQs, making LLC establishment seamless. The diligent editorial staff makes sure content is accurate, up-to-date information on topics like state-specific requirements, registered agents, and compliance. Steve's enthusiasm for entrepreneurship makes LLCBuddy an essential and trustworthy resource for launching and running an LLC.

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