How Much Does It Cost to Start an LLC in Illinois?

Illinois LLC Online Filing Fee: $150

The main cost tostart an LLC in Illinoisis the $150 fee to file your LLC's Articles of Organization online with the Illinois Secretary of State.

For a look at LLC costs in every state, read our otherCost to Start an LLCandHow to Form an LLCguides.

Cost to Form a Foreign LLC in Illinois

If you already have an LLC that is registered in another state and you’d like to expand your business into Illinois, you’ll need to register your LLC as aforeign LLC in Illinois.

The cost for registering anIllinois foreign LLC is $150. You can register a foreign LLC in Illinois by filing an Application for Admission to Transact Business (Form LLC-45.5).

Optional LLC Formation Costs

There are optional fees associated with LLC formation:

LLC Name Reservation

Reserve your name for up to 90 days prior to LLC formation by filingForm LLC 1.15and paying the $25 filing fee.

Assumed Name

File an Application to Adopt, Change, Cancel or Renew an Assumed Name (Form LLC-1.20) and pay the $25 filing fee to create a name other than your legal LLC business name.

Seven Basic Steps to Start an LLC in Illinois

Step 1:Name Your Illinois LLC
Step 2:Choose a Registered Agent
Step 3:File the Articles of Organization
Step 4:Create an Operating Agreement
Step 5:Get an EIN
Step 6:File an Annual Report
Step 7:Keep Your Company Compliant

Step 1: Name Your Illinois LLC

When you name your Illinois LLC, you’ll need to choose a name that:

1. Is available for use in the state of Illinois
2. Meets Illinois naming requirements
3. Is available as a web domain

Recommended:Visit ourStart an LLC in Illinoisguide for detailed naming rules and instructions for registering a business name in Illinois.

Not sure what to name your business?Check out ourHow to Name a Businessguide and freeLLC Name Generator.

We recommend that you check online to see if your business name is available as aweb domain. Even if you don't plan to create a business website today, you may want to buy the URL in order to prevent others from acquiring it.

Step 2: Choose a Registered Agent

All LLCs in Illinois must appoint aregistered agent. A registered agent primarily acts as your LLC’s main point of contact with the state. But most importantly, they are responsible for acceptingservice of processin the event your business is sued.

Your Illinois registered agent must:

• Be at least 18 years or older
• Have a physical address in Illinois
• Be available during normal business hours to accept service of process

Step 3: File the Articles of Organization

TheIllinois Form LLC-5.5 — Articles of Organizationis a document that is filed with the Illinois Secretary of State to form an LLC. The fee for filing the Articles of Organization is $150 online.

For detailed instructions for completing the Articles of Organization, visit ourHow to File the Illinois Articles of Organizationguide.

Step 4: Create an Operating Agreement

An operating agreement isn't required for Illinois LLCs, but it's a good practice to have one.

What is an operating agreement?An operating agreement is a legal document outlining the ownership and operating procedures of an LLC.

Why are operating agreements important?A comprehensive operating agreement ensures that all business owners are on the same page and reduces the risk of future conflict.

For more information on operating agreements, read ourIllinois LLC operating agreementguide.

Step 5: Get an EIN

What is an EIN?AnEINor Employer Identification Number is a nine-digit number issued by theInternal Revenue System (IRS)to identify a business for tax reporting purposes.An EIN is essentially a Social Security number (SSN) for your company.

Why do I need an EIN?An EIN number is required for the following:

• Opening abusiness bank account
• Hiring employees

Step 6: File the Annual Report

Illinois requires LLCs to file an annual report with the Secretary of State. This can be doneonlineorby mailwith a $75 filing fee.

Annual reports are due each year prior to the first day of the month in which the LLC was formed. Reports can be filed starting 60 days prior to the due date.

Step 7: Keep Your Company Compliant

In Illinois, ensuring your LLC remains compliant involves adhering to government regulations, fulfilling tax obligations, and complying with employment laws.

Here's a summary:

• Obtain all necessary business licenses and permits, the fees and requirements for which can vary based on your business activities. Our Illinois Business License guide offers more detailed information. For a more hands-off approach, consider hiring a professional service to research your business’s licensing requirements.
• Stay current with your Illinois LLC taxes. If you sell physical products, you'll typically need to register for a seller's permit through the MyTax Illinois website. Illinois charges a base state sales tax of 6.25% for general merchandise and services, and 1% on qualifying medical appliances, foods, and drugs. Local taxes can add up to 4.75% more. If you're hiring employees, you must register for both Unemployment Insurance Tax and Employee Withholding Tax through the MyTax Illinois portal.
• 伊利诺斯州一个平坦的个人所得税征税tax rate of 4.95% on your LLC's income. State tax returns are due each year by April 18. You can get more information from the Illinois Department of Revenue website.
• Your federal income tax must also be reported to the IRS each year using Form 1065 for multi-member LLCs or Form 1040 Schedule C for single-member LLCs.
• If hiring employees, follow legal requirements by verifying the eligibility of new hires to work in the US, reporting new employees to the state, providing workers' compensation insurance, withholding employee taxes, and prominently displaying workplace compliance posters.