Illinois LLC Requirements

Updated for 2026 · Official Secretary of State Website

Illinois is the economic engine of the Midwest, with Chicago serving as a global center for finance, technology, and transportation. The $150 filing fee is above average, and the $75 annual report adds to costs. Illinois recently simplified its filing process with immediate online processing, though mail submissions still take weeks.

Filing Fee

$150

One-time state fee

Annual Fee

$75

Per year

Processing

Immediate (online), 2-3 weeks (mail)

Online filing

Deadline

Anniversary month

Annual report due

Average Cost

Illinois's $150 filing fee is above the national average of ~$130, and the $75 annual report adds moderate ongoing costs. The recent fee reduction from $500 made formation much more accessible.

Notable Facts About Illinois LLCs

Illinois is home to 37 Fortune 500 companies, the third most of any state
Online LLC formation filings are processed immediately with instant confirmation
The state reduced its filing fee from $500 to $150 in 2024, a 70% reduction
Illinois does not require an operating agreement but strongly recommends one

Tax Information for Illinois LLCs

Illinois has a flat 4.95% individual income tax rate. LLCs taxed as pass-through entities pay at individual rates. The state also imposes a 1.5% replacement tax on LLC partnership income. There is no franchise tax. Illinois has a 6.25% state sales tax plus local additions.

Formation Steps

1

Choose a Name for Your LLC
Select a unique business name that complies with Illinois naming requirements. The name must include "LLC" or "Limited Liability Company" and cannot be the same as an existing registered business in Illinois.
2

Appoint a Registered Agent
Designate a registered agent with a physical address in Illinois who can receive legal documents and official correspondence on behalf of your LLC.
3

File Articles of Organization
Submit your Articles of Organization (also called a Certificate of Formation in some states) to the Illinois Secretary of State. This is the official document that creates your LLC.
4

Create an Operating Agreement
Draft an operating agreement that outlines ownership percentages, member roles, profit distribution, and management structure of your LLC. While not always legally required, it is strongly recommended.
5

Get an EIN from the IRS
Apply for a free Employer Identification Number (EIN) from the IRS. You'll need this for opening a business bank account, hiring employees, and filing taxes.
6

Open a Business Bank Account
Open a dedicated business bank account to keep your personal and business finances separate. This helps maintain your LLC's liability protection.
7

File Annual Reports
Illinois requires periodic reports due by Anniversary month. The filing fee is $75. Mark your calendar to avoid late fees or administrative dissolution.

Visit Official SOS Website

Annual Report Details

Fee: $75

Deadline: Anniversary month

Annual report due before the first day of the LLC's anniversary month. Filed based on formation anniversary date.

Annual report required. Additional ~$1.69 online processing fee.

Need a Registered Agent in Illinois?

Every Illinois LLC must have a registered agent with a physical address in the state. A registered agent service ensures you never miss important legal documents or compliance deadlines.

Compare Registered Agent Services

Frequently Asked Questions

How much does it cost to form an LLC in Illinois?

The state filing fee to form an LLC in Illinois is $150 for the Articles of Organization. This cost is near the national average compared to other states. Additional costs may include a registered agent service ($50-$300/year) and an operating agreement if you hire an attorney.

What is the annual cost of an LLC in Illinois?

Illinois charges $75 for its periodic reporting requirement, due Anniversary month. Annual report required. Additional ~$1.69 online processing fee. Illinois's $150 filing fee is above the national average of ~$130, and the $75 annual report adds moderate ongoing costs. The recent fee reduction from $500 made formation much more accessible.

How long does it take to form an LLC in Illinois?

Online filing in Illinois typically takes Immediate (online), 2-3 weeks (mail). You'll need to file Articles of Organization with the state. Processing times may vary based on filing volume and the time of year.

Do I need a registered agent in Illinois?

Yes, Illinois requires every LLC to have a registered agent with a physical street address in the state. The registered agent receives legal documents, tax notices, and official government correspondence on behalf of your LLC.

What taxes does a Illinois LLC pay?

Does Illinois require an operating agreement for LLCs?

While not all states legally require an operating agreement, it is strongly recommended for every LLC in Illinois. An operating agreement defines ownership structure, member roles, and how the business will be managed. Without one, your LLC will be governed by Illinois's default LLC laws.