How Much Does an LLC Cost in Illinois?

How much is the Illinois LLC formation filing fee?

The Illinois state filing fee for an LLC is $150. 

This is the base cost to start an Illinois LLC and will be paid by any and all business owners who create an LLC in the state. This cost is to register your LLC and to file your articles of incorporation.

In addition to this one-time start-up fee, you’ll also need to pay $75 each year to maintain your Illinois LLC. This cost is to file your annual report and is mandatory for maintaining your LLC.

You may have add-on expenses or additional services that you choose to pay for, but in general, this is the main start-up cost for an Illinois LLC. 

How much do LLC articles of organization cost in Illinois?

The filing fee and cost of your articles of organization are the same.

When you form your Illinois LLC, you’ll also file your articles of organization. This is the first step in the LLC formation process. The fee to register your LLC and file your articles of organization is $150. This fee is a one-time fee and is the main cost of registering an LLC.

You will file your articles of organization with the Illinois Secretary of State with your LLC application. Once approved, your Illinois LLC becomes active.

How much is the Illinois annual report fee?

To maintain your Illinois LLC, you’ll be required to file an annual report each year. In some states, this is called the Statement of Information, and it must be filed by one of the LLC’s officers and can be filed online.

Filing your annual report incurs a $75 fee. This must be paid each year that your business entity is in operation and is required to remain in good standing.

How much does a registered agent cost in Illinois?

As an LLC, you are required to designate a registered agent. A registered agent is a person or agency who receives legal documentation for your LLC. These documents might include lawsuits or subpoenas.

Your registered agent’s information will be included in your articles of organization.

You can hire a professional registered agent or designate someone within your organization to be the registered agent. If you're the owner of a single-member LLC, you can be your own registered agent. If you hire a registered agent, it will cost between $40 and $500 per year. 

The registered agent of your organization must be available during business hours to receive papers. Your name and address must be included in the articles of organization. If you’re not sure if you’ll be available during the required hours or want an additional level of privacy, you might want to hire a registered agent.

How much does an Illinois seller’s permit cost?

It is free to apply for a seller’s permit in Illinois.

If you plan to sell taxable goods or services in Illinois, you are required to get a Certificate of Registration or Illinois Business Authorization. This is more commonly known as a seller’s permit.

A seller’s permit registers your business for Illinois sales tax and other taxes you must pay. When you apply for the statewide seller’s permit, you will either receive a Certificate of Registration or a Certificate of License, depending on which taxes you are required to pay.

How much do local business licenses cost in Illinois?

Illinois has no state-level, general business license that’s required for all businesses. In Illinois, you might need a business license based on your industry, but there is no general license.

Industries that typically need licenses to operate include:

• Restaurants 
• Bars that serve alcohol
• Medical or pharmaceutical practices

The cost for industry-specific business licenses varies. 

Though there is no statewide business license in Illinois, some counties require businesses to get one. For example, in Cook County, businesses need a $40 business license that lasts two years. Each county has slightly different rules, so it’s important to look up the guidelines for the county where your business will operate.

How much is the annual LLC fee in Illinois?

The only recurring fee for Illinois LLCs is the $75 cost to file your annual report with the Illinois Secretary of State. The fee is due each year on the first of the month in which you formed your LLC.

How much does business insurance cost in Illinois?

The cost of business insurance, and whether or not you need it, will depend upon your industry, the level of risk associated with the work, and how many employees you have. 

Business insurance is an investment to protect your company. It lowers your liability and will offer some protection if your company gets sued.

There are a few different types of insurance you may consider:

• Liability insurance
• Worker’s compensation insurance (required in Illinois if you have at least one full- or part-time employee)
• Property insurance
• Auto insurance (for company-owned vehicles)
• Business interruption insurance

The cost of insurance will depend upon the risk level, type of industry, and number of employees being insured. 

What is the Illinois franchise tax?

For many small businesses in Illinois, they will not need to pay any franchise taxes. 

Franchise tax is calculated by multiplying your paid-in capital by 0.001. Paid-in capital is the money a corporation receives from shareholders in exchange for stock.

An important note: The first $100,000 of franchise tax is exempt. This means if you calculate your franchise tax and the total is under $100,000, you do not owe anything. If it is above $100,000, you’ll owe tax on any amount over that threshold.

Other Illinois fees and business costs you might encounter

While the registration fee and annual filing fee are quite straightforward and affordable, there are also a number of smaller fees you might encounter when setting up and operating your Illinois LLC.

• Expedited processing fee: If you want your LLC registration processed the day it is received, you can pay $100 for expedited processing. Requests for expedited service must be made in person in the Illinois Secretary of State office in Chicago or Springfield.
• Series LLC: If you are forming multiple LLCs, you can choose to create a series LLC. This functions as a single parent LLC with multiple “child” LLCs underneath. This costs $400 to form. 
• Business name reservation: If you’re not quite ready to start your LLC but know what you want to name the business, you can apply to reserve and hold that name for 90 days. The name reservation fee is $25. 
• Doing business as or DBA: If you want to operate your business under a name that’s different from the registered LLC name, you can apply for a DBA or Assumed Name. The name is effective for five years. The fee is prorated, depending upon what year you apply. The fee ranges from $30 to $150, depending on when you will need to renew. The renewal cost is $150 for another five years.
• Certified copies: If you need any copies of your business documents, you will need to request a certified copy from the Illinois Secretary of State. A certified copy costs $25. You can also pay for an expedited process, which costs an additional $20-$50, depending on what documents you are requesting.
• Certificate of good standing: A certificate of good standing in Illinois is a document stating that your business is in compliance and up to date on taxes and state reports. The filing fee to get this document is $25 and $45 for expedited.
• Credit card processing fees: When ordering copies or filing online, you will pay a credit card processing fee for all transactions. 

What is the total cost to start an LLC in Illinois?

In general, the base price for an Illinois LLC is $150. That is the only required fee for all new LLCs in the state.

You can choose to add on services, such as hiring a registered agent or paying for expedited processing of your application. These additional services could add a couple hundred to a thousand dollars to your annual cost of operating your LLC.

Depending on your industry and geographic location, you may also need to apply for local or county business licenses and pay for insurance to protect your business.

In addition to the initial filing fee, all LLCs must pay the annual renewal fee of $75 to keep their business in good standing. In your first year, the lowest Illinois LLC cost is $150.

Once your LLC is registered, then it's time to apply for a federal employer identification number, which will be used to pay your Illinois LLC taxes and apply for an LLC bank account.

FAQs

Does it cost more to register a foreign LLC in Illinois?

No. The cost for a foreign LLC in Illinois is the same as a local LLC. A foreign LLC costs $150, while a foreign series LLC costs $400. If you’d like to expedite the application process, you can pay an additional $100. 

Can you get grants to help cover the cost of starting a business in Illinois?

The state of Illinois offers a number of different grant programs that are available to local small businesses. Each grant has specific eligibility parameters. These grants can make the cost of ownership more affordable and allow owners to invest in expanding and sustaining their small Illinois businesses. 

What’s the cheapest way to start an LLC in Illinois?

The lowest possible cost to start an LLC in Illinois is to apply to start the business for $150 and not pay for expedited processing. 

Depending on your industry, the number of employees you have, and the risks associated with your business, you may also need to pay for a registered agent, business insurance, or local licenses. Otherwise, the only necessary cost for starting up an LLC in Illinois is the $150 filing fee.