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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.
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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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 recurring costs associated with maintaining an LLC in Illinois is the annual report filing fee. Every year, LLCs are required to file an annual report with the Illinois Secretary of State’s office, which provides an update on the company’s information and ownership structure. This filing fee is necessary to keep the LLC in good standing and varies depending on the state’s regulations.
Apart from the annual report filing fee, there are other taxes and fees that LLCs in Illinois may need to pay. For example, LLCs are subject to an annual franchise tax in Illinois, which is based on the company’s net worth. This tax can vary depending on the size and earning potential of the LLC, so it’s essential for business owners to budget for this expense accordingly.
In addition to the annual report filing fee and franchise tax, LLCs in Illinois also have to consider the cost of maintaining a registered agent. A registered agent is responsible for receiving legal documents and official correspondence on behalf of the LLC and must have a physical address within the state. Many business owners choose to hire a professional registered agent service to fulfill this requirement, which comes with an additional fee.
Furthermore, there are other miscellaneous fees associated with maintaining an LLC in Illinois that business owners should be aware of. For example, there may be charges for changes to the company’s name, address, or ownership structure, as well as penalties for late filings or noncompliance with state regulations. These costs can add up quickly if business owners are not diligent in maintaining their LLC status.
Overall, the cost of maintaining an LLC in Illinois can vary depending on a variety of factors, including the size and nature of the business as well as any changes that occur over time. It’s essential for business owners to stay informed about these expenses and budget accordingly to ensure that their LLC remains in good standing with the state and protected from personal liability.
In conclusion, understanding the various costs associated with maintaining an LLC in Illinois is crucial for business owners to effectively manage their finances and comply with state regulations. By staying informed about the annual report filing fee, franchise tax, registered agent fees, and other miscellaneous costs, LLCs can protect their assets and maintain good standing with the state. It’s important for business owners to budget for these expenses and stay proactive in managing their LLC to avoid any unnecessary problems or penalties in the future.
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