How Much Does an LLC Cost in Illinois
From the standard $150 filing fee to a range of other expenses, read on to ensure you're financially prepared before creating an LLC in Illinois.
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Here are the following costs to consider:
- Domestic LLC Formation Filing Fee: $150
- Foreign LLC Formation Filing Fee: $150
- LLC Annual Report Fee: $75
- Business Permits and Licenses Fees: $0 to $500+
- Taxes 4.95% and15.3%
- Optional Fees: $0 to $3,000+
Understanding the costs of starting an LLC in Illinois isn't the most straightforward. For instance, the cost of filing an Assumed Business Name in the state varies depending on the year you filed it.
It can be a headache at first glance, but it will all become clear once you've read through this guide. This comprehensive checklist of Illinois LLC fees will help you prepare a more accurate budget.
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The LLC formation filing fee in Illinois is $150.[1] On top of that, the annual report fee is $75. Other add-on fees could increase the total cost of forming an LLC in Illinois to over $1,000.
Illinois Domestic LLC Formation Filing Fee
Cost: $150[1]
You need to file an Articles of Organization if you are an Illinois resident and you want to start an LLC in the state. This is a one-time LLC formation filing fee and is payable to the Illinois Secretary of State.
An Illinois LLC Articles of Organization contains the following details:
- Business name (with an "LLC" at the end)
- Business description or purpose
- The LLC's business address
- The names and addresses of LLC members and/or managers
- The registered agent's full name and address
If you're filing by mail, use a certified check, money order, or a check from an Illinois lawyer or CPA. For online filings, use a Visa, Mastercard, Discover, or American Express credit card. Your payment will be refunded if your LLC application is rejected.
Illinois Foreign LLC Formation Filing Fee
Cost: $150[1]
You need to file an Application for Admission to Transact Business in Illinois if you want to start an LLC in the state but are not a resident.
This also applies if your LLC was originally formed in another state (your "home" state), but you also want to conduct business in Illinois. This process ensures that your LLC is recognized and authorized to do business in Illinois, even though it was formed under the laws of a different state.
Yes. You need to file an annual report and submit it to the Illinois Secretary of State each year. The filing fee is $75.
Illinois LLC Annual Report Fee
Cost: $75[1]
LLCs are required to submit an Annual report to the Secretary of State in Illinois. This report helps the state maintain accurate details of your business. All the information included in your LLC's Annual report is public and is accessible to everyone.
Annual reports are due on the last day before your LLC's formation month. For example, if your LLC was established on February 23, the annual report must be filed by January 31 every year.
Submitting the Annual report on time is important because it keeps your LLC in compliance with state law, and therefore in good standing.
Yes. The penalty for failing to pay the annual report filing fee is $100. The state could also dissolve your LLC if you fail to pay the fee within 60 days of the deadline.
Illinois LLC Business Permits and Licenses Fees
Cost: $0 - $500+
There's no state-level general business license in Illinois. However, you may need to get additional permits and licenses if your LLC:
- Has industry-specific licenses, like a liquor license
- Conducts higher-level business activities, like building houses
- Operates in a city that has a county-level business license, like in Cook County
Additionally, an LLC that provides professional services, like a dental clinic or an architecture firm, will need to get a professional license. The cost of licenses and permits vary. Visit the Illinois Business Registrations, Licenses & Permits website for more information.
Illinois Business Taxes
Cost: 4.95% (Income Tax Rate) | 15.3% (Self-Employment tax)
By default, single-member LLCs are taxed as sole proprietors and multi-member LLCs as partnerships. You can change this by electing to be taxed as a C-Corporation or an S-Corporation.
All members of the LLC are required to contribute 15.3% of their share of the LLC's net earnings towards Self-Employment taxes. This rate is a combination of two taxes: 12.4% for Social Security and 2.9% for Medicare.[2] You must also pay Illinois' State Income Tax at a fixed rate of 4.95%.[3]
Your LLC may need to pay some of these taxes depending on the business's profits and losses:
- Federal taxes
- State income tax
- Local income tax
- Payroll tax (for LLCs with employees)
- Property tax (for LLCs that own property)
No. There is no franchise tax required from any LLC operating in the state of Illinois.
Optional Fees for LLCs in Illinois
After setting up your LLC, there are still optional or add-on fees you may face along the way.
From reserving a business name to getting the requirements for an LLC bank account, here are the rest of the LLC fees you should look out for.
| Illinois LLC Optional Fees | Cost |
|---|---|
| Illinois LLC Expedited Services Fee | $20 - $200 |
| Illinois LLC Registered Agent Fee | $0 - $400+ |
| Illinois LLC Operating Agreement Fee | $0 - $1,000+ |
| Illinois Employer Identification Number (EIN) | FREE |
| Illinois LLC Name Reservation Fee | $25 |
| Illinois LLC Doing Business As (DBA) Fee | $30 - $150 |
| Illinois LLC Certified Copy of Business Document Fee | $25 |
| Illinois LLC Certificate of Good Standing Fee | $25 |
| Illinois LLC Statement of Correction Fee | $25 |
| Illinois LLC Statement of Amendment Fee | $50 |
| Illinois LLC Statement of Change Fee | $25 |
| Illinois Business Website Domain Fee | $10 - $20 |
| Illinois Business Insurance Premiums | $ - $$$ |
Illinois LLC Expedited Services Fee
Cost: $20 - $200[1]
If you're in a hurry and need your documents processed quickly, you can pay the expedited services fee. Doing so will process your LLC-related documents faster than the standard processing time.
It takes around 10 business days to receive the decision from the Secretary of State after submission of your Articles of Organization. If you pay the $100 expedited services, it will be processed on the day that it was received.
You can also request expedited processing for other LLC documents. It costs $20 for a Certificate of Good Standing and $50 to $200 for all other documents.
Illinois LLC Registered Agent Fee
Cost: $0 - $400+
All LLCs in Illinois are required to appoint a registered agent who will receive legal documents on behalf of the LLC. To save money, you can be your own LLC's registered agent.
However, there are advantages to hiring a registered agent service:
- An additional layer of privacy, since the registered agent's address must be available to the public
- Someone else can receive the LLC's documents during normal hours even if you're not around
- A foreign LLC needs to have a registered agent who has a physical address in the state
The cost of a registered agent depends on the services included. A registered agent service that also processes your LLC's other business needs will likely charge more.
- Be at least 18 years of age
- Have a physical address in the state
- Be available to receive documents during business hours
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- Business address included
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- Includes unlimited cloud storage for your business documents
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- Renews automatically each year. Renewal rate is subject to change.
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Illinois LLC Operating Agreement Fee
Cost: $0 - $1,000+
An LLC operating agreement is a legal document that contains important business information. This includes members' roles and responsibilities, ownership rights, and profit sharing.
LLCs in Illinois are not required to have an operating agreement. However, it is highly recommended that you have one as it may help clarify disputes in the future.
For example, without a specific agreement, the LLC's profits and losses will be equally divided regardless of individual capital contributions.
Illinois Employer Identification Number (EIN)
Cost: FREE
An Employer Identification Number (EIN) is a unique nine-digit code that the Internal Regulation Service (IRS) uses to identify your business for tax purposes.
If you are a single-member LLC with no employees, you can use a Social Security number (SSN) instead. However, you may still need to get an EIN in the future if you want to create a bank account for your LLC or hire employees.
Using your personal bank account for business can pierce your LLC's corporate veil. It defeats the purpose of having an LLC to separate personal assets from business assets.
Illinois LLC Name Reservation Fee
Cost: $25[4]
Naming your LLC does not cost anything. It's included with your Articles of Organization. But if you're not ready to submit the Articles of Organization, you can pay the business name reservation fee. This will reserve the business name you want for 90 days and will refrain others from using it.
Before reserving a business name, check if anyone else is already using it through the Department of Business Services search engine.
Illinois LLC Doing Business As (DBA) Fee
Cost: $30 - $150[5]
A DBA name, short for "Doing Business As," is a nickname for a business. It's the name a company uses to operate that is different from its legal, registered name.
For example, if "John Doe Enterprises LLC" wants to do business as "John's Coffee Shop," the latter would be the DBA name. Entrepreneurs usually get a DBA if they want to operate under a business name that is more marketable or doesn't have an "LLC" at the end.
In Illinois, DBAs are effective for five-year periods. However, the five-year periods are static. This means the renewal period is the same for every business.
The DBA fee in Illinois depends on what year you filed:
- $150 - Years ending in 0 or 5
- $120 - Years ending in 1 or 6
- $90 - Years ending in 2 or 7
- $60 - Years ending in 3 or 8
- $30 - Years ending in 4 or 9
If you file a DBA in February 2022, it will remain valid for three years until February 2025. If you file a DBA in February 2023, it will be valid for two years.
Illinois LLC Certified Copy of Document Fee
Cost: $25[1]
The Illinois Secretary of State provides official state-issued copies of your LLC's business documents. You might need a Certified Copy of a business document for your LLC for several reasons:
- Opening a bank account
- Applying for a loan
- Entering into contracts
Certified copies of business documents may also be required if you plan to expand your LLC operations to other states.
Illinois LLC Certificate of Good Standing Fee
Cost: $25[1]
You will need a Certificate of Good Standing to demonstrate that your LLC is up to date with taxes and state reports. This certificate also confirms that your LLC is officially registered and legally authorized to do business in Illinois.
Illinois LLC Statement of Correction Fee
Cost: $25[1]
The Illinois LLC Correction Fee is the amount you pay to correct any mistakes in your LLC's official documents filed with the state. It's a charge for updating or fixing errors in these records.
It's important to review your Articles of Organization as soon as it is approved by the Secretary of State. If there are any errors in the details, like your office address or members' names, use the Statement of Correction to rectify the mistakes.
Illinois LLC Statement of Amendment Fee
Cost: $50[1]
The Illinois LLC Amendment Fee is the cost of making official changes to your LLC's registered information with the state. This includes altering the business name or address.
No. A Statement of Correction is used to fix errors in already submitted LLC documents, like typos or incorrect information. A Statement of Amendment, on the other hand, is for making significant changes to the LLC's official details.
Illinois LLC Statement of Change Fee
Cost: $25[1]
You can change your LLC's registered agent anytime. However, you must inform the Secretary of State of this change as soon as possible. You must also submit the Statement of Change of Registered Agent if your registered agent's physical address in Illinois has changed.
Illinois Business Website Domain Fee
Cost: $20 - $30
The state of Illinois does not require LLCs to have a business website domain. However, you may want to purchase one even if you're not planning to build a website anytime soon. Reserving a domain early can prevent others from using the LLC's name as an online address.
Illinois Business Insurance Premiums
Cost: $ - $$$
All LLCs in Illinois with at least one employee are required to get workers' compensation insurance. As an LLC member, you have the option to include yourself in the insurance coverage.
Illinois does not offer a state fund for workers' compensation insurance. This means you'll need to find a private insurance company.
Additionally, you may need to pay for liability insurance if the nature of your LLC's business purpose has a high risk of being sued. The cost of business insurance depends on your business' risk level and the amount of coverage you want.
Bottom Line
Creating an LLC in Illinois involves a lot of planning and budgeting. The LLC formation filing fee costs $150, which is cheaper than the filing fees in other states.
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However, the total cost could easily balloon once you include bigger expenses like business insurance, business permits and licenses, and registered agent services.
Before creating an LLC in Illinois, the best way to move forward is to save this comprehensive list of LLC fees–and then ensure that you have appropriately budgeted for them.
References
- ^ The Office of the Illinois Secretary of State. Limited Liability Company Publications/Forms, Retrieved 02/11/2024
- ^ IRS. Self-Employment Tax (Social Security and Medicare Taxes), Retrieved 02/11/2024
- ^ Illinois Department of Revenue. Income Tax Rates, Retrieved 02/11/2024
- ^ The Office of the Illinois Secretary of State. Application for Reservation of Name, Retrieved 02/11/2024
- ^ The Office of the Illinois Secretary of State. Adopting an Assumed LLC Name, Retrieved 02/11/2024
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