How to Start an LLC in Illinois
Forming an LLC in Illinois costs $150 in state filing fees, paid to the Illinois Secretary of State. Here is the full process, the real costs and the Illinois-specific rules most guides skip.
What it costs
| Item | Cost | Required? |
|---|---|---|
| State filing fee (Illinois Secretary of State) | $150 | Yes, one time |
| Annual report | $75 | Yes, recurring |
| Registered agent service | $100–$200 / year | Optional (you can be your own) |
| EIN from the IRS | Free | Yes, for banking and taxes |
| Operating agreement | Free–$200 | Strongly recommended |
Step by step
Choose and check your LLC name
Your name must be distinguishable from existing Illinois entities and include "LLC" or "Limited Liability Company". Search availability for free on the Illinois Secretary of State website before you fall in love with a name.
Appoint a registered agent
Required by law: a person or company with a physical street address in Illinois, available during business hours to receive legal mail. You can be your own agent if you live in the state; most founders who value privacy or don't live there use a service ($100 to $200 per year).
File your formation documents ($150)
File Articles of Organization (in some states called a Certificate of Formation) with the Illinois Secretary of State. Standard processing: about 5-10 business days online. This is the step that legally creates the LLC.
Get your EIN from the IRS (free)
The Employer Identification Number is your LLC's federal tax ID, needed for bank accounts, hiring and tax filings. The IRS issues it free. If the LLC's principal place of business is in the US and the responsible party has an SSN or ITIN, the IRS online application issues the number immediately (one EIN per responsible party per day). Owners without an SSN or ITIN, including most non-US founders, cannot use the online tool: they file Form SS-4 by fax (about 4 business days), by mail (about 4 weeks) or, for international applicants, by phone at 267-941-1099. Details and the exact numbers are in our non-resident guide. Never pay a service just for an EIN.
Create an operating agreement
Illinois does not legally require an operating agreement, but banks, investors and courts expect one, and it is the document that protects your limited liability if ownership is ever disputed.
Handle ongoing compliance
Illinois requires an annual report of $75. Calendar it the day your LLC is approved, missing it risks late fees and eventually administrative dissolution.
What an Illinois LLC really costs
| Item | Amount | Notes |
|---|---|---|
| Articles of Organization | $150 | Online or paper |
| Annual report | $75 | Due before the first day of your anniversary month |
| Late annual report penalty | $100 | If not filed within 60 days of the due date |
| Expedite (optional) | $100 | Processed within 24 hours |
| Name reservation (optional) | $25 | 90 days |
An Illinois resident acting as their own agent pays $150 in year one and $75 a year after. Filing instructions are on the Secretary of State LLC page.
The annual report deadline is earlier than you think
- Illinois wants the report before the first day of your anniversary month. An LLC formed on June 20 files by May 31, not by June 20 or June 30.
- Within 60 days of the due date it can still be filed for $75. After that, a $100 late penalty applies.
- If the report remains unfiled 120 days after the LLC becomes delinquent, it is administratively dissolved. Reinstatement requires every missed report and fee.
- A dissolved LLC's name stays locked for a period, so a reinstating LLC can usually keep it, but nobody else can use it meanwhile.
The replacement tax surprise
Illinois charges a personal property replacement tax of 1.5% on the Illinois net income of an LLC taxed as a partnership, filed on Form IL-1065 by the 15th day of the fourth month after year end. It is paid by the LLC itself, on top of the owners' own income tax. Single-member LLCs that are disregarded for federal tax are generally not subject to it. Details from the Illinois Department of Revenue.
Public record
The Articles list the names and addresses of the managers, or of members who have management authority in a member-managed LLC. Illinois is not a privacy state.
Mistakes we see with Illinois LLCs
- Filing the annual report in the anniversary month instead of before it.
- Relying on older articles that quote the pre-2018 $500 formation fee.
- Forming a multi-member LLC without budgeting for the 1.5% replacement tax.
- Assuming the owners are private when their names are on the Articles.
Official Illinois links
Illinois LLC: frequently asked questions
How much does it cost to start an LLC in Illinois?
The state filing fee is $150, paid to the Illinois Secretary of State. Ongoing state cost: $75. Optional costs include a registered agent service (typically $100 to $200 per year) if you don't act as your own.
How long does it take to form an LLC in Illinois?
Typical processing time: about 5-10 business days online. Many states offer paid expedited options if you need the LLC approved faster. The clock starts when the Illinois Secretary of State receives your filing.
Do I need a registered agent in Illinois?
Yes. Every Illinois LLC must continuously maintain a registered agent with a physical street address in the state to receive legal and official mail. You can serve as your own agent if you have an Illinois address and are available during business hours, or hire a commercial registered agent service.
What happens if I miss the Illinois annual report?
The report costs $75 and missing the deadline typically triggers late fees, loss of good standing and eventually administrative dissolution of the LLC. Reinstatement is possible but costs more than filing on time.
When is the Illinois LLC annual report due?
Before the first day of the LLC's anniversary month, every year. An LLC formed in June files by May 31. The fee is $75, with a $100 penalty if it is not filed within 60 days of the due date.
What is the Illinois replacement tax for LLCs?
A 1.5% tax on the Illinois net income of an LLC taxed as a partnership, paid by the LLC on Form IL-1065, in addition to the owners' individual income tax.
Not sure whether Illinois fits your situation?
Before you choose a filing package, talk through your business, location and goals with a real setup specialist. Get a clear formation roadmap at no cost and with no purchase obligation.
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Compare with other states
Fees and rules last reviewed September 2026. State fees change; always confirm with the Illinois Secretary of State before filing. This guide is general information, not legal or tax advice.