How Much Does an LLC Cost in Illinois?
The State LLC filing fee in Illinois is $150 for the articles of organization. There’s a $75 renewal fee. Forming and maintaining an LLC can be costly so it’s good to be aware of it before you start. State fees, business licenses, and additional registrations can all add up, so let’s review them in detail to make sure you plan your budget accordingly.
Illinois LLC Costs – Summary
| LLC filing fee (articles of organization) | $150, or $400 for a series LLC |
| Annual report | $75 |
| Licenses and permits | Cost varies by municipality and/or county● In the Chicago area, licenses and permits could cost $1,000 or more● In other parts of the state, the cost could be around $100 |
| Registered agent service (optional) | $199 to $400 |
| Reservation of business name | $25 for 90 days |
| DBA or assumed business name | $30 per year, payable for 5-year periods |
| Operating agreement (optional) | $0 to $1,000 |
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Establishing a limited liability company (LLC) in Illinois can be difficult and expensive. The good news is that you have options for ways to make the process easier. Using an LLC formation service in Illinois, like Tailor Brands, is one way to make the process go more smoothly. As for the cost, the exact amount may vary greatly depending on the state where you are looking to form an LLC. Illinois costs might include filing fees, professional fees, and administrative expenses. This article provides an overview of the costs of filing an LLC in Illinois.
General Steps and Costs When Forming an Illinois LLC
Several steps in the LLC formation process include costs. Some costs are mandatory, while others are optional.
Naming your Illinois LLC
The Illinois Secretary of State does not charge you to search its database to see if the business name you want is available. If you want to reserve a name for your LLC or adopt an assumed name — also known as a DBA (“doing business as”) — you must pay a fee:
- Name reservation: $25 for ninety days, with no option to renew
- Assumed name: $30 per year, payable in five-year increments
The filing and renewal fees for an assumed name are somewhat unusual. The Secretary of State will register a DBA for five years, but the five-year periods are static, meaning they begin and end simultaneously for everybody, regardless of when they filed their DBA. The registration periods end in years that are divisible by five. As a result, the amount that you must pay to register a DBA depends on when you file:
- 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
For example, if you file an assumed name registration in April 2022, it will remain valid for three years until April 2025. If you file in April 2023, it will be valid for two years.
Filing articles of organization
The filing fee for articles of organization, the document that creates your LLC, is $150. A specialized type of LLC known as a series LLC has a $400 filing fee.
Once you have created your LLC, you must file annual reports with the Secretary of State. Each report has a filing fee of $75.
Appointing a registered agent
You may act as your registered agent at no cost or at least no monetary cost. The annual fee for a registered agent service can range from $199 to around $400. You may miss out on the benefits of using a registered agent service like Tailor Brands.
Creating an operating agreement
You are not required to create an operating agreement for your LLC, but it is highly advisable that you have one. The cost could range from $0 if you do it yourself to around $1,000 if you hire an attorney. You can also use Tailor Brands’ operating agreement service.
Other Annual and Additional Illinois LLC Costs
Your LLC may be subject to several ongoing expenses.
Franchise tax
Your LLC’s state tax liabilities will depend on the type of federal income tax treatment that you have chosen. Some states require LLCs and other business entities to pay a franchise tax in exchange for legal protection from liability. Illinois does not have a franchise tax for LLCs.
Business licenses & permits
Your LLC may need licenses or permits from local or state agencies to engage in specific business activities. Many of these licenses and permits require application fees and annual renewals.
Illinois does not have a general statewide business license requirement, except for businesses that sell or lease goods subject to sales tax. For that, your LLC will need a Certificate of Registration or Certificate of License from the Illinois Department of Revenue. You do not have to pay to obtain the certificate, but you will be obligated to collect and remit sales tax.
You may need permits or licenses from your local government, a state agency, or the federal government for specific activities. Examples of permits may include:
- Zoning permit
- Building code permit
- Health permit
- Signage permit
- Liquor license
Annual report
All Illinois LLCs must file annual reports with the Secretary of State. An annual report identifies an LLC’s registered agent and registered office. It also provides the names of all managers or members with management authority. The purpose of the annual report is to notify the state of any changes in an LLC’s management. The filing fee is $75 for the annual report.
While you must identify your LLC’s registered agent in each annual report, you cannot use this document to change your designated agent. That requires a separate filing with a filing fee of $25.
What Expenses You Can Write Off
Most of the LLC formation costs are deductible from federal income taxes. Deductible costs may include the following:
- Cost of completing articles of organization
- Filing fees
- DBA fees
- Operating agreement costs
- Registered agent costs
- Attorney fees
Conclusion
Starting an LLC in Illinois may seem like an overwhelming process. It requires preparing and filing paperwork to create the business entity, followed by more paperwork due to the state each year. The benefits of having an LLC are often worth the effort and expense, though. You have some control over the costs associated with creating an LLC. Certain expenses, such as filing fees, are unavoidable. Others are optional, but they often involve assistance in keeping your LLC compliant with state law. For example, a registered agent service can offer you the peace of mind that someone is keeping track of the essential filing deadlines for annual reports and other official documents, freeing you up to work on your business.
FAQ
The minimum cost is $150 to file your Articles of Organization. If you add optional services—like a registered agent, operating agreement assistance, or name reservation, costs can range between $200 to $700 or more, depending on what you choose.
No. You are not required to hire a lawyer. Many entrepreneurs form LLCs on their own or through affordable formation services like we offer, which helps you file documents, prepare an operating agreement, and stay compliant.
Yes. Every LLC in Illinois must file an annual report and pay the $75 fee each year, even if your LLC didn’t conduct business. Failing to file on time can result in penalties or administrative dissolution.
Yes, Illinois law requires that you appoint a registered agent (either yourself or a third party) to receive legal and government documents. While you can be your own agent, many business owners prefer using a registered agent service to maintain privacy and ensure reliability.
Illinois uses fixed 5-year DBA cycles (ending in years divisible by 5). If you file mid-cycle, you still pay the full remaining amount for the cycle. For example, filing in 2023 means your registration will expire in 2025, and you’ll pay $60 for the remaining 2 years.
Most major costs are disclosed upfront. However, additional expenses may apply depending on your business type:
– Local licenses or permits
– Professional licensing (e.g., for accountants, salons, food services)
– Taxes if you sell goods or hire employees
You may also face late fees if you miss filing deadlines.
Yes. You can reserve a name for $25 for 90 days. This is useful if you’re not ready to file your Articles of Organization but want to protect your name from being taken.
Illinois doesn’t require a general statewide license. However, you may need a sales tax registration or local business licenses depending on your location and industry. Check with your city or county clerk’s office for details.
Illinois doesn’t require a general statewide license. However, you may need a sales tax registration or local business licenses depending on your location and industry. Check with your city or county clerk’s office for details.
Yes. Most formation and operational costs, such as filing fees, registered agent services, and legal help are deductible business expenses on your federal tax return. Keep all receipts and consult a tax professional to maximize deductions.
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