CobaltProsper

How to start an LLC in Illinois

By Brent Chudoba, editor Updated

Forming an LLC in Illinois costs $150 to file the Articles of Organization with the Illinois Secretary of State. After that you file an annual report of $75. Illinois charges no franchise tax on a standard LLC. Registered agent service is required; many use third-party registered agent services which charge additional annual fees ($50-$300+)

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

Illinois LLC costs (reviewed August 29, 2026)
ItemCost
Filing fee (Articles of Organization)$150
Annual report$75/year
Franchise or business taxNone
Registered agentRequired

Source: Illinois Secretary of State, fee schedule reviewed August 29, 2026.

What are the steps to form an LLC in Illinois?

  1. Name your LLC. Pick a name that is available and meets Illinois naming rules, then check it against the Secretary of State's business database.
  2. Appoint a registered agent. Illinois requires a registered agent with a physical in-state address to receive legal mail. You can be your own agent, or hire a service.
  3. File the Articles of Organization. Submit it to the Illinois Secretary of State and pay the $150 fee. This is the step that legally creates the LLC.
  4. Get an EIN from the IRS. It is free and takes minutes. Do not pay a service for it. See how to get an EIN free from the IRS.
  5. Calendar your annual report. Illinois charges $75 to keep the LLC in good standing. Missing it risks penalties or administrative dissolution.
  6. Open a business bank account. Keep business money separate from personal money so your liability protection holds up.

Does Illinois have a franchise tax on an LLC?

No. Illinois does not impose a franchise tax on LLCs

How is an LLC taxed in Illinois?

By default, an LLC is a pass-through entity: it pays no income tax itself, and the profits flow to the owners' personal returns. Illinois has a state individual income tax with a top rate of 4.95% (flat brackets), so those profits are taxed on your Illinois return on top of federal tax. Flat 4.95% tax rate applies to all individual income regardless of income level

An LLC can also elect to be taxed as an S-corp, which changes how owners pay self-employment tax. See LLC vs S-corp vs sole proprietorship and how self-employment tax works.

Sources