Illinois charges $150 to file Articles of Organization, but the number to remember is the late penalty: miss your annual report deadline and the state adds a $100 penalty on top of the $75 report fee, plus another $100 for each additional year it stays delinquent. Your report is due before the first day of your LLC’s anniversary month every year. Illinois LLCs taxed as partnerships or S corporations also owe the state’s replacement tax on net Illinois income, which surprises many new owners.
Illinois LLC quick facts
Fees and deadlines from official state sources| Formation document | Articles of Organization (Form LLC-5.5) |
|---|---|
| Filing fee | $150 (series LLC: $400) |
| Processing / expedite | Standard: 10 business days. 24-hour service: $250 total |
| Annual report | $75, due before the first day of the anniversary month |
| State LLC tax | No flat annual LLC fee; Personal Property Replacement Income Tax of 1.5 percent of net Illinois income for LLCs taxed as partnerships or S corporations |
| Registered agent | Required; must have an Illinois street address |
| Newspaper publication | Not required by the Secretary of State’s formation instructions |
| Where to file | Illinois Secretary of State, Department of Business Services |
Step 1Settle on an available name
Your LLC’s name must include “Limited Liability Company,” “LLC,” or “L.L.C.” and must be distinguishable from names already on the state’s records. One Illinois-specific wrinkle: the name of an Illinois LLC that was administratively dissolved stays unavailable for three years after the notice of dissolution.
If you are not ready to file but want to hold a name, you can reserve it with the Secretary of State for $25.
Step 2Name a registered agent with an Illinois street address
Every Illinois LLC needs a registered agent: either an individual who lives in Illinois or a business entity authorized to transact business in the state. The registered office must be a street address in Illinois, and it has to match the agent’s business office. A P.O. box on its own is not accepted.
This matters more than it may seem. The Secretary of State mails all of its correspondence, including annual report notices, to the registered agent. If your agent’s address goes stale, you can miss the reminders that keep you out of penalty territory.
Step 3File Articles of Organization
The formation document is the Articles of Organization (Form LLC-5.5). Along with the name and registered agent details, the articles must list the names and business addresses of every manager, and of any member who has authority to manage the company.
You can file online if your LLC is not already formed in another state and you do not need special purpose provisions in the articles. Online filing is paid by card, and a payment processor fee applies. After approval, the state sends confirmation by email.
- Standard filing: $150, processed in 10 business days.
- 24-hour service: $250 in total.
- Series LLC: $400. Each individual series then needs its own Certificate of Designation (Form LLC-37.40), filed after the articles.
Step 4Keep up with the annual report
Every Illinois LLC files an Annual Report with the Secretary of State. The fee is $75, and it is due before the first day of the anniversary month each year. Your anniversary month is the month your LLC was formed.
If the report has not been filed before the first day of the second month after your anniversary month, the statute adds a $100 penalty, plus $100 for each additional year of delinquency. A delinquent LLC is shown as not in good standing, and the Secretary of State will not file other documents for it until the problem is fixed. If the LLC ends up administratively dissolved, reinstatement costs $200 in addition to what is owed.
Step 5Handle the rest of the setup
- Operating agreement: Not filed with the state, but worth having so ownership, management and profit splits are in writing.
- EIN: Get a free Employer Identification Number from the IRS if you will hire, open a business bank account, or have more than one member.
- Illinois Department of Revenue: If you conduct business in Illinois, the Department says you must register with it. You can register online through MyTax Illinois or by mailing Form REG-1.
- Local licenses: Check with your city and county for any licenses or permits your type of business needs.
Illinois LLC costs
| Articles of Organization | $150 one time ($250 with 24-hour service) |
|---|---|
| Name reservation (optional) | $25 one time |
| Annual report | $75 per year |
| Late annual report penalty | $100, plus $100 per additional year |
| EIN | Free from the IRS |
How Illinois compares
State filing fee to form an LLC, next to neighboring states. The national median is $100.
National median · Fees from each state's official sources; some states charge a different amount online or by mail. If you live and run your business in Illinois, forming your LLC in another state usually means also registering it here as a foreign LLC, so you pay both states' fees.
The Illinois replacement tax
Illinois does not charge LLCs a flat yearly franchise fee, but it does have a Personal Property Replacement Income Tax. According to the Illinois Department of Revenue, partnerships, trusts and S corporations pay a 1.5 percent replacement tax on their net Illinois income, and corporations pay 2.5 percent. How it hits your LLC depends on how the LLC is taxed federally: a multi-member LLC taxed as a partnership files Form IL-1065, which is due on or before the 15th day of the 4th month after the close of the tax year. A tax professional can tell you how this applies to your situation.
File it yourself or use a formation service?
Filing Illinois Articles of Organization yourself is straightforward, and doing it yourself costs only the state fee. Formation services charge extra to prepare and submit the same form, and some bundle in a registered agent or compliance reminders. That can be useful if you have no Illinois address or worry about missing the annual report deadline, but none of it is required by the state.
Frequently asked questions
How long does it take to form an LLC in Illinois?
Standard processing is 10 business days. If you need it faster, 24-hour service costs $250 in total.
When is my Illinois annual report due?
Before the first day of your LLC’s anniversary month, every year. The fee is $75.
Do I have to publish a notice in a newspaper?
No. The Secretary of State’s LLC formation instructions do not include a publication requirement.
Can I be my own registered agent?
Yes, if you are an Illinois resident with an Illinois street address that serves as your business office. A P.O. box alone will not work.
Sources
- Illinois Secretary of State: LLC Articles of Organization instructions and fees
- 805 ILCS 180/50-10: Illinois LLC fee schedule
- 805 ILCS 180/50-15: Annual report due date and delinquency penalties
- Illinois Department of Revenue: Personal Property Replacement Tax
- Illinois Department of Revenue: Partnership income and replacement tax (Form IL-1065)
- Illinois Department of Revenue: Business registration
- IRS: Get an Employer Identification Number