How Much Does an LLC Cost in Illinois? (Filing Fees 2024)

Starting an LLC in Illinois is smart for many entrepreneurs looking to make their mark. The initial filing fee investment is $150 to file your Articles of Organization, plus a $75 annual report fee to keep your business in good standing.
But the journey doesn’t end there—you’ll need to budget for optional costs like registered agent services, DBA registrations, LLC name reservations, certificate of good standing, and business licenses.
Understanding the full range of these costs will help you plan better and set your business up for success.
How Much Does an LLC Cost in Illinois?
Starting an LLC in Illinois involves several costs.
Here’s a comprehensive breakdown:
- Filing Fee for Articles of Organization: The cost to file your Articles of Organization in Illinois is $150.
- Expedited Processing: If you need expedited processing, it costs an additional $100.
- Registered Agent Services: Hiring a registered agent typically costs between $100 to $300 per year.
- LLC Name Reservation: Reserving your LLC name before filing costs $25.
- DBA (Doing Business As) Registration: The cost to register a DBA name varies.
- Certificate of Good Standing: This certificate, required for various business activities, costs $25.
- Business Licenses and Permits: You may need specific licenses or permits depending on your business type and location. Costs vary widely based on local and state requirements.
- Annual Report Fee: Illinois requires LLCs to file annual reports, which cost $75.
- Taxes: Illinois limited liability companies (LLCs) are taxed as pass-through entities by default. This means the LLC itself doesn’t pay taxes directly. Instead, the profits or losses from the LLC pass through to the members’ tax returns. Each member is responsible for paying self-employment taxes on their share of the LLC’s profits.
Knowing these costs helps you plan your budget effectively and ensures you’re prepared for your LLC’s initial setup and ongoing maintenance in Illinois.
LLC Costs in Illinois (Formation Fees)
Here’s a table outlining the key requirements and their associated fees for forming an LLC in Illinois:
Illinois LLC Requirements | Cost |
---|---|
LLC Business Name Cost | $0 |
Articles of Organization | $150 |
Operating Agreement (optional) | $0 (with Northwest) |
EIN Number | $0 (free from IRS) |
Annual Report | $75/annually |
LLC Name Reservation Fee (optional) | $25 |
Certificate of Good Standing (optional) | $25 |
Foreign LLC Registration (optional) | $150 |
Fictitious Name (DBA) (optional) | Varies |
Taxes | Varies by business type |
State Business License Fees | Varies |
Registered Agent Services (optional) | $0-$125 (Northwest) |
LLC Formation Services (optional) | $39 |
Total LLC Costs in Illinois | $225 – $589 |
Illinois LLC filing fees table
Total Illinois LLC costs range from $225 to $589. If you do everything yourself and skip the optional extras, you might only spend around $225. However, if you decide to pay for additional services and requirements, your costs could go up to between $400 and $589.
The first mandatory expense is the $150 fee for filing the Articles of Organization, which is essential for officially establishing your LLC. Additionally, you’ll need to budget for the annual report, which costs $75 each year.
Now, let’s discuss the optional costs.
Obtaining an Employer Identification Number (EIN) is free from the IRS, and securing an LLC business name costs $0. An Operating Agreement is recommended but can be obtained at no cost using services like Northwest if you want to reserve your LLC name, that will typically cost $25.
You may also want a Certificate of Good Standing, which costs $25. Registering a foreign LLC in Illinois incurs a fee of $150. The costs can vary if you wish to operate under a different name (DBA).
Regarding registered agent services, you can either act as your agent at no cost or hire a professional service, which typically ranges from $100 to $300. If you choose to use LLC formation services, that typically costs around $39.
Remember that taxes and state business license fees can vary based on your specific business activities.
Understanding these mandatory and optional costs will help you budget effectively as you embark on your business journey in Illinois.
Illinois LLC Business Name Cost ($0)
Searching for a business name for your LLC in Illinois is free. You can select any name that meets state requirements without paying a fee.
Make sure your chosen name is unique. It cannot be the same as an existing registered name in Illinois. You can check this through the Illinois Secretary of State’s website, which provides a searchable database.
When you decide on a name, remember it must include “LLC” or “Limited Liability Company.” This identifies your business structure.
Once you have a suitable name, you can use it for free while filing your Articles of Organization. This step is essential before your LLC can officially operate.
You can reserve it for a fee to prevent others from using your business name. This reservation is optional.
Illinois Articles of Organization ($150)
You must file the Articles of Organization to form an LLC in Illinois. This document establishes your LLC with the state and officially makes it legal. The filing fee for this document is $150.
When you submit your Articles of Organization to the Illinois Secretary of State, you must do so to the Illinois Secretary of State. You can file online or by mail, but ensure you complete all required form sections.
The Illinois LLC processing time is 2-4 weeks, covering the duration for filing your Articles of Organization with the Illinois Secretary of State and receiving approval. Online filing takes 5-10 business days, while mail filing takes 3-4 weeks, including transit time.
After your Articles of Organization are approved, you will receive a confirmation that your LLC is officially registered. This step is crucial for protecting your assets and gaining credibility for your business.
LLC Operating Agreement Cost in Illinois ($0 with Northwest)
Creating an LLC operating agreement is an important step for your business. This document outlines how your LLC will be run and helps prevent member misunderstandings.
In Illinois, the cost of drafting an operating agreement can vary. However, you can get this document for free with Northwest Registered Agent. They provide a template to help you set up your operating agreement without the usual fees.
Although an operating agreement is not required by law in Illinois, it is highly recommended. It can protect your rights and clarify your roles within the business.
Using a free service saves money while still preparing an essential document. This can make starting your LLC in Illinois more affordable and straightforward. Use this resource to set a solid foundation for your business.
You can find Operating Agreement templates online through various websites that offer free downloads. Just be sure to review and customize the template to suit your specific business needs and legal requirements.
Illinois Registered Agent Fee ($0-$300/year)
In Illinois, acting as your registered agent costs you nothing. You need to provide your name and address. This option is great if you prefer to handle everything personally.
If you hire a professional Illinois registered agent service, expect to pay between $100 and $300 annually. These services can help protect your privacy and provide additional support. For instance, LegalZoom charges about $249 annually, while ZenBusiness offers services for $199 annually.
A popular choice is Northwest Registered Agent. They offer a special deal: if you hire them to form your LLC, their services are free for the first year. After that, their annual fee is $125, which is competitive.
Though many services charge upwards of $300, Northwest stands out for its affordability and good customer support. This makes it easier to ensure your LLC stays compliant while keeping costs manageable.
EIN Cost in Illinois ($0 from the IRS website)
Getting an Employer Identification Number (EIN) in Illinois is free. You can apply directly through the IRS. This number is important for your LLC as it identifies your business for tax purposes.
You don’t have to worry about any fees. The IRS provides this service at no charge, making it simple to get your LLC up and running without additional costs.
Getting your EIN is a simple step toward establishing your LLC in Illinois. With it, you’ll be ready for tax filings and opening a business bank account.
Illinois Annual Report Fee ($75/annually)
In Illinois, every LLC is required to file an Annual Report. This report helps keep your business compliant with state regulations. The fee for filing the Annual Report is $75 each year.
You must submit your Annual Report by the first day of the month your LLC was created. For example, if your LLC was formed in June, you must file the report by June 1st every year.
If you miss the deadline, you risk incurring additional fees. Filing late by over 60 days will result in a $100 late fee. To avoid this, make sure you file on time.
You can choose to file your report online or by mail. Filing online is straightforward and usually incurs the standard $75 fee. An extra $50 processing fee will apply if you file by mail.
Remember, paying this fee is essential to maintain your LLC’s status in good standing. Keeping track of your filing deadline will help you avoid unnecessary costs. Always check the Illinois Secretary of State’s website for the latest information and updates.
Fictitious Name/DBA Cost in Illinois (varies)
If you plan to operate under a name different from your legal business name, you must register a DBA, also known as an assumed name, in Illinois.
To do this, you must file an Application to Adopt, Change, Cancel, or Renew an Assumed Name with the Secretary of State. The costs for registering your DBA vary depending on the year you file.
Here’s a quick breakdown of the initial filing fees:
- Years ending in 0 or 5: $150
- Years ending in 1 or 6: $120
- Years ending in 2 or 7: $90
- Years ending in 3 or 8: $60
- Years ending in 4 or 9: $30
The assumed names are valid for five years. You can renew your DBA within 60 days before it expires. The renewal fee is $150.
Track your filing year to better understand your costs. This step is crucial for legally maintaining your business name and avoiding any interruptions in your operations.
LLC Name Reservation Fee in Illinois ($25)
When starting an LLC in Illinois, one important step is reserving your business name. This process ensures that your chosen name is available and protected while you complete the formation of your LLC.
To reserve your name, you must file Form LLC 1.15. The fee for this service is $25. This fee allows you to hold your desired name for up to 90 days. During this period, no other business can register the same name.
If you change your mind, you can cancel the reservation for just $5. This flexibility allows you to decide on your business name without the pressure to finalize it immediately.
It’s important to remember that name reservation does not include the full LLC registration. Once ready, you must file the Articles of Organization and pay the associated fees to officially create your LLC.
Illinois Certificate of Good Standing ($25)
In Illinois, a Certificate of Good Standing is important for your business. It confirms that your LLC is compliant with state laws and regulations. This certificate is often needed when applying for loans or contracts.
This certificate is available for $25. This fee applies to corporations and LLCs. However, if your business is a not-for-profit organization, the cost is only $5.
You have a couple of options to get the certificate. You can purchase it online through the Illinois Secretary of State’s website. After completing the payment, you will receive a link to print your certificate immediately.
Alternatively, you can request it by mail. For this option, send a written request and a check for $25 to the Secretary of State’s Corporations Division. Include your business name and any relevant details to avoid delays.
This certificate is valid for a specific period. Check its status regularly to keep your business in good standing with the state. A valid Certificate of Good Standing can enhance your business credibility and make it easier to operate in Illinois.
Illinois Foreign LLC Registration Fee ($150)
If you want to register a foreign LLC in Illinois, you must pay a fee of $150. This fee is required when you apply for a Certificate of Authority to operate your business in Illinois.
The process involves filing the required documents with the Illinois Secretary of State. You’ll need proof that your LLC is in good standing in its home state.
Paying the fee is straightforward. You can do this online or by mail. Remember, cash is not accepted; your check should be made payable to the Illinois Secretary of State.
If your home state charges a fee for the Certificate of Good Standing, expect to pay between $0 and $50. This amount varies by state, so check your home state’s requirements.
After registration, maintaining compliance is vital. You must file annual reports and pay renewal fees to keep your foreign LLC in good standing in Illinois. This ensures that you can continue to operate legally within the state.
Illinois State Business License Fees (varies)
In Illinois, you won’t find a state-level general business license. Instead, the licensing requirements depend on your specific industry.
For instance, if you own a restaurant, you will need a liquor license to serve alcohol. The costs associated with these industry-specific licenses can differ significantly.
Remember that license and permit fees can vary widely based on location and the nature of your business. Some costs might be as low as $100, while others could exceed $1,000, particularly in larger cities like Chicago.
It’s important to ensure that you meet all local regulations. Skipping out on necessary licenses can lead to fines or other legal issues.
Doing thorough research and planning for these fees can save you time and money in the long run. Ensure you account for any additional permits unique to your business operations.
Check the Illinois Business Registrations, Licenses & Permits website to understand what you need. Here, you can find detailed information about the licenses and permits required for your business.
Illinois LLC Taxes (varies)
As an Illinois LLC owner, you will face several types of taxes. The total cost can differ significantly based on your business activities.
Here’s a list of common taxes you may need to pay:
- Federal Taxes: You will be responsible for federal income taxes on your profits.
- State Income Tax: Illinois LLCs also pay state income tax on revenue.
- Local Income Tax: Local income taxes may apply depending on your location.
- Business Taxes: Certain types of businesses may face specific taxes.
- Self-Employment Taxes: This includes Social Security and Medicare taxes on earnings.
- Sales Tax: You must collect and remit sales tax if you sell goods or services.
- Payroll Tax: If you have employees, payroll taxes will apply.
- Property Tax: If your LLC owns property, you need to pay property tax.
Your overall tax liability varies based on your industry and how much business you conduct. Each LLC is unique, so your specific taxes depend on your situation.
Consulting a tax professional can help you navigate these obligations and understand what applies to you.
Illinois LLC reinstatement fee ($200)
If you need to reinstate your LLC in Illinois, you must pay a $200 reinstatement fee. You must pay this fixed cost when you submit your reinstatement application.
In addition to the base fee, you may have to pay for any missed annual reports. Each unpaid report comes with a fee of $100. Check how many reports you missed to calculate your total cost accurately.
Additional fees exist if you opt to change your LLC’s name or registered agent during the reinstatement process. These fees are $50 for each change you wish to make.
For those who prefer to file in person, there may be options for expedited service. This usually involves paying an extra $100 for the reinstatement. You may also pay $50 for each past-due report if you file in person at the Chicago or Springfield offices.
Illinois LLC dissolution fee ($5)
When you dissolve your LLC in Illinois, you must pay a filing fee of $5. This fee is straightforward, making it relatively simple to close your business.
To start the process, you have to file an Article of Dissolution. This document informs the state that you are officially ending your LLC. You can obtain this form from the Illinois Secretary of State’s website or your local office.
Please include payment along with your filing form. The fee can be paid by check to the Illinois Secretary of State. Cash is not accepted for these filings.
It’s important to check for any additional requirements in your specific case. Some LLCs may have obligations to settle debts or distribute remaining assets before filing for dissolution. Reviewing your operating agreement can help guide you through these requirements.
Illinois LLC Change of Registered Agent fee ($25)
Changing your registered agent in Illinois is straightforward and costs $25. This fee applies when you file the required form to update your agent information.
You can complete the change online, which is quick and convenient. When you submit your form, the Illinois Secretary of State will review it. Typically, this review takes about ten business days.
Expedited service is available for those who prefer faster processing. This service costs an additional fee, so check the current rates on the Secretary of State’s website.
Keeping your registered agent information up to date is essential. This ensures that important legal documents are sent to the right place.
What is the Cheapest Way to Start Illinois LLC?
Starting an LLC in Illinois can be done in several different ways. The primary method is filing the Articles of Organization with the Secretary of State. This document costs $150, and it can be filed online, which is convenient and fast.
Another option is to use a formation service. These services often charge a fee in addition to the state filing fee. While they save time and handle paperwork, the overall cost will be higher than doing it yourself.
This is typically the cheapest method if you choose the DIY route and file online. You only pay the state fee without extra charges. However, you need to be prepared to handle all the necessary paperwork on your own.
Keep in mind that there are cons to filing on your own. You might feel overwhelmed by the forms or unsure if you’ve completed everything correctly. Without professional help, you could make mistakes that may delay your approval.
If keeping costs low is your goal, filing the Articles of Organization online yourself is the best choice. Just be aware that you take on more responsibility and should ensure all requirements are met.
Should You Use an LLC Formation Service in Illinois?
Using an LLC formation service in Illinois can make the process smoother and less stressful. Here are some key benefits:
- Simplified Process: LLC formation services handle all the paperwork and ensure you meet state requirements, saving you time and reducing stress, especially if you’re new to forming an LLC.
- Privacy Benefits: Services like Northwest Registered Agent offer strong privacy protections, keeping your personal information secure and helping you maintain anonymity while running your business.
- Peace of Mind: Using a formation service, you don’t have to worry about missing deadlines or filing requirements. They help you stay compliant, preventing costly penalties and legal issues.
- Access to Experts: These services provide access to LLC formation experts and attorneys, offering valuable advice and support to guide you through the process and address any questions.
Choosing an LLC formation service in Illinois depends on your comfort level with paperwork and your budget. It might be the right choice if you prioritize convenience and support.
Frequently Asked Questions
How long does it take for LLC approval in Illinois?
The timeline to form an LLC in Illinois is 2-4 weeks, covering the duration for filing your Articles of Organization with the Illinois Secretary of State and receiving approval. Online filing takes 5-10 business days, while mail filing takes 3-4 weeks, including transit time.
How much does it cost to open an LLC in Illinois?
To open an LLC in Illinois, you must pay a filing fee of $150. This fee covers submitting your Articles of Organization to the Secretary of State.
Do I need a business license if I have an LLC in Illinois?
Yes, you generally need a business license to operate legally, even if you have an LLC. The type of license you need may depend on your business activities and location.
How much does an LLC cost per year in Illinois?
Once your LLC is formed, you must pay an annual fee of $75 to maintain it. This is required every year to keep your LLC in good standing.
How much does it cost to reinstate an LLC in Illinois?
If your LLC has been dissolved or administratively dissolved, you must pay a reinstatement fee of $200 to bring it back into good standing. This allows you to resume business operations.
How much does it cost to dissolve an LLC in Illinois?
Dissolving an LLC in Illinois costs $5. This is the fee for filing the Articles of Dissolution with the Illinois Secretary of State.
Is Illinois a good state to form an LLC?
Illinois offers several benefits for LLCs, including established business laws and regulations. However, taxes and fees should be considered when deciding if it’s the right state for your LLC.
Do I need to hire an attorney to form an LLC in Illinois?
You are not required to hire an attorney to form your LLC in Illinois. Many people complete the process themselves using online resources and guides.
Should I hire an LLC formation service in Illinois?
Using an LLC formation service can simplify the process for you. These services can help ensure that your paperwork is completed correctly and submitted on time.
Are there penalties for paying my fees late in Illinois?
Yes, late payments of annual fees can result in penalties and could lead to the dissolution of your LLC. It is important to pay your fees on time to avoid unnecessary complications.
What happens if I do not file my Illinois LLC annual report?
Failure to file your annual report can mark your LLC as inactive or even dissolved. Maintaining compliance is crucial to keep your LLC legally valid.
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