An LLC in Illinois costs $150 to form and $75 every year after that to keep in good standing with the Secretary of State. Once you add a registered agent, possible expedited processing, and state taxes on your business income, most people spend somewhere between $250 and $600 in the first year.
The $150 Formation Fee
The one required upfront cost is $150 to file your Articles of Organization with the Illinois Secretary of State.1Illinois Secretary of State. Limited Liability Company Publications and Forms That single filing is what actually creates your LLC. The fee is the same whether you file online or by mail.
Need it done faster? Expedited processing adds $100, for a total of $250, and the request has to be made in person at the Springfield or Chicago office.1Illinois Secretary of State. Limited Liability Company Publications and Forms
A separate structure, the Series LLC, lets you spin off internal “series” that each hold their own assets and liabilities. It costs $400 to file.1Illinois Secretary of State. Limited Liability Company Publications and Forms Most small businesses don’t need one and can ignore this option.
The $75 Annual Report
Every Illinois LLC has to file an annual report and pay $75 each year to stay active.2Illinois General Assembly. Illinois Code 805 ILCS 180 – Limited Liability Company Act – Section 50-10 The form itself is short: name, address, registered agent, and management information.
The filing window opens 60 days before the first day of your anniversary month, meaning the month your LLC was originally formed.3Illinois General Assembly. Illinois Code 805 ILCS 180 – Limited Liability Company Act – Section 50-1 An LLC formed in September owes its report by the start of September each year.
Miss it and the state can administratively dissolve your LLC, which strips it of authority to sue, close deals requiring good standing, or bring on new investors. Getting back in costs $200 for reinstatement plus every missed annual report going back up to six years.1Illinois Secretary of State. Limited Liability Company Publications and Forms Staying current on the $75 is far cheaper than climbing back out.
Registered Agent: Free or $49–$300 a Year
Illinois requires every LLC to continuously maintain a registered agent with a physical street address in the state.4Illinois General Assembly. Illinois Code 805 ILCS 180 – Limited Liability Company Act – Section 1-35 That agent is who accepts lawsuits and official state mail on your LLC’s behalf.
You can serve as your own agent for free if you have an Illinois street address (no P.O. boxes) and you’re reliably around during business hours. That second part matters more than people expect. If a process server can’t find you, you can miss a lawsuit and end up with a default judgment against your business.
A professional registered agent service usually runs $49 to $300 a year. Cheaper plans just forward documents; pricier ones bundle in compliance reminders and annual report alerts. Hiring one also keeps your home address off the public record.
Illinois Taxes to Budget For
Fees are only part of the picture. Two tax obligations regularly catch new LLC owners off guard.
Personal Property Replacement Tax
Illinois charges a Personal Property Replacement Tax of 1.5% on the net income of partnerships, S corporations, and trusts, a category that captures most multi-member LLCs.5Illinois Department of Revenue. Personal Property Replacement Tax On $100,000 in net Illinois income, that’s $1,500 owed before you touch your personal return.
Federal Self-Employment Tax
LLC members who actively work in the business owe federal self-employment tax of 15.3% on their share of the profits: 12.4% for Social Security up to the annual wage base, and 2.9% for Medicare on all net earnings. It applies whether or not you actually pull the money out of the company. This is the line item new owners most often forget until filing season.
Optional and Situational Fees
A few other Secretary of State charges show up depending on your circumstances:
- Name reservation: $25 to lock in an LLC name before you’re ready to file.1Illinois Secretary of State. Limited Liability Company Publications and Forms
- Assumed business name (DBA) renewal: $150, if you operate under a name other than your LLC’s legal name.1Illinois Secretary of State. Limited Liability Company Publications and Forms
- Articles of Amendment: $50 to change your LLC’s name, registered agent, or other formation details.
- Certificate of Good Standing: $25, often requested by banks or lenders as proof your LLC is active.
- Statement of Termination: $5 when you close the business down.
Each of these carries an added expedited fee, typically $50, for faster in-person processing.1Illinois Secretary of State. Limited Liability Company Publications and Forms
One cost worth calling out because it shouldn’t be a cost: the federal Employer Identification Number your bank will ask for. Applying directly through the IRS is free and takes about ten minutes.6Internal Revenue Service. Get an Employer Identification Number Third-party sites charging $50 to $150 for this are just filling out the same free form on your behalf.
Business licenses are the other variable. Illinois has no statewide general business license, so what you owe depends on your industry and city. A basic local license may run under $100; heavily regulated fields like liquor sales or healthcare can run into the thousands.
Doing It Yourself vs. Paying for Help
You can form an Illinois LLC entirely on your own for the $150 state fee. Online formation services range from $0 (plus the state fee) up to a few hundred dollars, usually bundling the filing with an operating agreement template and a year of registered agent service. Attorneys charge more, typically $500 to $2,000, and can draft a custom operating agreement, advise on tax elections, and catch issues a template misses.
For a single-member LLC with straightforward operations, filing yourself works fine. Multiple members, uneven ownership splits, or complex tax planning are where the attorney fee earns its keep.