How much does it cost to form an LLC in Illinois in 2026?

The state filing fee is $150 for a standard Articles of Organization (Form LLC-5.5). Series LLCs pay $400 instead. Plan for another $50 to $125 per year for a commercial registered agent with an Illinois street address, plus the $75 annual report every year.

Does Illinois have an annual report?

Yes. Illinois LLCs file an annual report with a $75 fee, due before the first day of the LLC's anniversary month. Late filings add a $100 penalty plus $100 for each additional year of delinquency under 805 ILCS 180/50-15. Series LLCs pay $50 extra per active series.

Does Illinois have a franchise tax on LLCs?

No. The Illinois corporate franchise tax was repealed effective January 1, 2024 under P.A. 102-16, and it never applied to LLCs to begin with. LLCs classified as partnerships do pay a 1.5% Personal Property Replacement Tax on net income, which is separate from franchise tax and filed with Form IL-1065.

Do Illinois LLCs pay state income tax?

A pass-through LLC does not pay entity-level Illinois income tax; members pay Illinois' flat 4.95% individual rate on their share. A partnership-classified LLC also pays the 1.5% Personal Property Replacement Tax at the entity level. An LLC that elects C-corp treatment pays 7% corporate income tax plus 1.5% PPRT, for an effective 9.5% combined rate.

How long does it take to form an Illinois LLC?

Online filings through the Illinois Secretary of State portal typically clear in around 10 business days. Mail filings take 21 business days and are rarely worth the wait. Expedited 24-hour service is available online for an extra $100.

Should I form my LLC in Illinois instead of Wyoming or Delaware?

If you live or operate in Illinois, almost always yes. Forming in Wyoming or Delaware means you still have to register the out-of-state LLC as a foreign LLC in Illinois the moment you have an office, employees, or any real Illinois presence, which costs $150 plus the $75 annual report. You end up paying both states. Chicago-adjacent founders should just file here.

Does Illinois require an operating agreement?

No. 805 ILCS 180/1-5 recognizes operating agreements that are oral, written, implied, or any combination, and Illinois does not require one to be filed. A written operating agreement is still strongly advised for any multi-member LLC, and it helps defend the liability shield if ownership or governance is ever challenged.

Does Illinois have a publication requirement for new LLCs?

No. Illinois has no newspaper publication requirement for forming an LLC, which distinguishes it from New York, Arizona, and Nebraska. You file Articles of Organization, pay the fee, and you are formed once the Secretary of State accepts the filing.

Illinois LLC: fees, filing steps, and 2026 costs

$150 Filing fee Online filing available

$325 Year 1 estimate Filing + first year tax + RA

10 days (expedited 24h) Approval Mail ~21d

$75 annual report Ongoing

Where Illinois fits, and where it doesn't

Good fit for Illinois

You live in Illinois or do business from a physical Illinois location. You run a Chicago consultancy, a suburban Cook County service business, or a downstate operation that does not need out-of-state framing to work. You want to avoid the ongoing cost and complexity of a Wyoming or Delaware setup that you would have to foreign-qualify back in Illinois the moment you hired anyone or signed a lease. You prefer one clean filing in the state where you actually operate.

Skip Illinois when

You live in another state and have no Illinois operations, customers, or employees. Illinois' $75 annual report stacks on top of whatever your home state charges, and you gain no tax or privacy advantage in return. If your primary goal is non-resident privacy, Wyoming is a better pick. If you want established business case law, Delaware is a better pick. Illinois is a home-state option, and an honest one for anyone whose business center of gravity sits in the state.

What an Illinois LLC actually costs

Formation filing fee Paid once at formation $150
Commercial registered agent Annual, estimate $100
Annual report fee Annual $75
Year 1 total estimate Formation plus first-year ongoing $325

Registered agent estimate uses a $100 midpoint. Specialist agents start around $50 per year. Full-service formation companies bundle RA for $125 to $200.

Cost across the first three years

Year 1 $325

Year 2 $175

Year 3 $175

How Illinois compares on the basics

Online filing File through state portal

Yes

Expedited processing $100 for 24h

Yes

Annual report required Separate report on top of tax

Yes

State-imposed annual tax None beyond income tax

Written operating agreement required Recommended, not statutorily required

Recommended

Newspaper publication requirement Not required in this state

State sales tax 6.25% state rate

6.25%

How to apply for an LLC in Illinois

Pick a compliant LLC name
The name must end in "Limited Liability Company," "LLC," or an approved abbreviation, and must be distinguishable from every other entity on the Illinois Secretary of State record. Check availability at the Illinois entity search.
Designate a registered agent
Every Illinois LLC is required to have a registered agent with a physical street address in Illinois. You can serve as your own agent if you live in Illinois, or hire a commercial service for $99 to $249/yr. See the Illinois registered agent guide.
File Form LLC-5.5 - Articles of Organization
Filing fee is $150. Online filing is available through the state portal. Mail filings are accepted. Paid expedite is available for $100.
Apply for a federal EIN
Free directly from the IRS in about 15 minutes (see the EIN guide). Required for opening a business bank account, hiring employees, and most formation-service tax workflows.
Adopt an operating agreement
Illinois does not require an operating agreement by statute, but adopting one is strongly recommended to preserve the liability shield. See the operating agreement pillar for the 12 clauses every agreement should include.

Filing walkthrough

You file Articles of Organization (Form LLC-5.5) through the Illinois Secretary of State's online portal at apps.ilsos.gov. The fee is $150 and online approvals clear in roughly 10 business days. Mail filings run around 21 business days, which is longer than most states, so skip the envelope unless you genuinely need a paper submission. Illinois requires a registered agent with a street address in the state, and commercial agents typically charge $50 to $125 a year.

One thing that catches Illinois filers off guard. The base Articles of Organization are $150, but if you want a Series LLC instead of a standard LLC, the filing fee jumps to $400 and each active series adds $50 per year on top of the annual report. Most small operators do not need a Series LLC and should not pay for one. Expedited 24-hour service is $100 through the same online portal.

Check name availability File online Illinois formation guidance

How Illinois taxes an LLC

Illinois has no franchise tax on LLCs. The old corporate franchise tax was fully phased out effective January 1, 2024 under P.A. 102-16, and LLCs were never in scope. What Illinois does reach into is LLC income, through the Personal Property Replacement Tax, known as PPRT. An LLC classified as a partnership for federal tax pays PPRT at 1.5% of net income on Form IL-1065. A single-member LLC treated as disregarded does not file IL-1065; the PPRT flows through individual rules.

Illinois individual income tax is a flat 4.95%, which Illinois voters reaffirmed by rejecting a graduated-rate amendment in 2020. Members of pass-through LLCs report their share on IL-1040 at that flat rate. An LLC that elects C-corp treatment pays 7% corporate income tax plus the 1.5% PPRT, for a combined 9.5% on C-corp income, which is one of the higher combined rates in the Midwest.

State sales tax is 6.3% for general merchandise, with local additions that push combined rates higher in Chicago, Cook County, and surrounding areas. Effective January 1, 2026, Illinois eliminated the 1% state grocery tax, though municipalities can reimpose their own 1% local grocery tax to replace it.

Ongoing compliance and costs after year one

Budget $75 a year for the annual report plus $50 to $125 for a commercial registered agent. The annual report is due before the first day of the LLC's anniversary month under 805 ILCS 180/50-1(b). Miss it and the penalty is $100, plus an additional $100 for each subsequent year of delinquency, which adds up quickly if the filing slips and no one notices. If the LLC is a partnership for federal tax, add the PPRT filing at 1.5% of net income on top.

If you foreign-qualify an Illinois LLC in another state where you actually operate, add that state's registration fee and annual report to the picture. The reverse case is more common: non-residents who formed in Wyoming or Delaware and then end up paying Illinois' $150 foreign registration fee once they open an Illinois office or hire employees here.

Common mistakes forming an Illinois LLC

Two patterns recur. First, people form a Series LLC because someone told them it was the modern Illinois move, then they never use the series structure. The $400 filing fee and the $50-per-series annual add-on are real, and they reward you only if you actually need segregated asset pools for multiple properties or lines of business. For most small LLCs, the standard $150 filing and $75 annual is the correct choice. Second, Illinois filers sometimes assume the repealed corporate franchise tax means LLCs owe nothing at the entity level, and forget about the Personal Property Replacement Tax. Partnerships pay PPRT. It is small (1.5% of net income) but it is a real IL-1065 filing, and skipping it is how an otherwise clean LLC picks up penalties.

State agencies that handle Illinois LLCs

Illinois Secretary of State, Department of Business Services

Website: www.ilsos.gov/departments/business_services/home.html
Phone: (217) 524-8008
Mail: Limited Liability Division, 501 S. Second St., Room 351, Springfield, IL 62756
Office: 501 S. Second St., Room 351, Springfield, IL 62756
Hours: 8:00 AM to 4:30 PM Central, Monday to Friday

Illinois Department of Revenue

Website: tax.illinois.gov
Phone: (800) 732-8866
Mail: 101 West Jefferson Street, Springfield, IL 62702
Office: 555 West Monroe, Suite 1100, Chicago, IL 60661
Hours: 8:30 AM to 5:00 PM Central, Monday to Friday

Frequently Asked Questions

How much does it cost to form an LLC in Illinois in 2026?

The state filing fee is $150 for a standard Articles of Organization (Form LLC-5.5). Series LLCs pay $400 instead. Plan for another $50 to $125 per year for a commercial registered agent with an Illinois street address, plus the $75 annual report every year.
Does Illinois have an annual report?

Yes. Illinois LLCs file an annual report with a $75 fee, due before the first day of the LLC's anniversary month. Late filings add a $100 penalty plus $100 for each additional year of delinquency under 805 ILCS 180/50-15. Series LLCs pay $50 extra per active series.
Does Illinois have a franchise tax on LLCs?

No. The Illinois corporate franchise tax was repealed effective January 1, 2024 under P.A. 102-16, and it never applied to LLCs to begin with. LLCs classified as partnerships do pay a 1.5% Personal Property Replacement Tax on net income, which is separate from franchise tax and filed with Form IL-1065.
Do Illinois LLCs pay state income tax?

A pass-through LLC does not pay entity-level Illinois income tax; members pay Illinois' flat 4.95% individual rate on their share. A partnership-classified LLC also pays the 1.5% Personal Property Replacement Tax at the entity level. An LLC that elects C-corp treatment pays 7% corporate income tax plus 1.5% PPRT, for an effective 9.5% combined rate.
How long does it take to form an Illinois LLC?

Online filings through the Illinois Secretary of State portal typically clear in around 10 business days. Mail filings take 21 business days and are rarely worth the wait. Expedited 24-hour service is available online for an extra $100.
Should I form my LLC in Illinois instead of Wyoming or Delaware?

If you live or operate in Illinois, almost always yes. Forming in Wyoming or Delaware means you still have to register the out-of-state LLC as a foreign LLC in Illinois the moment you have an office, employees, or any real Illinois presence, which costs $150 plus the $75 annual report. You end up paying both states. Chicago-adjacent founders should just file here.
Does Illinois require an operating agreement?

No. 805 ILCS 180/1-5 recognizes operating agreements that are oral, written, implied, or any combination, and Illinois does not require one to be filed. A written operating agreement is still strongly advised for any multi-member LLC, and it helps defend the liability shield if ownership or governance is ever challenged.
Does Illinois have a publication requirement for new LLCs?

No. Illinois has no newspaper publication requirement for forming an LLC, which distinguishes it from New York, Arizona, and Nebraska. You file Articles of Organization, pay the fee, and you are formed once the Secretary of State accepts the filing.
How do I apply for an LLC in Illinois?

Apply for an LLC in Illinois by filing Form LLC-5.5 - Articles of Organization with Illinois Secretary of State, Department of Business Services. The filing fee is $150. Online filing is available through the state portal. Approval typically takes 10 business days online. Mail filings take about 21 business days. Before filing, pick a registered agent (see the Illinois registered agent guide) and confirm your business name is available using the state's entity search.

Compare Illinois to another state

Side-by-side breakdowns of fees, taxes, approval time, and compliance. Every other US jurisdiction has a dedicated compare page against Illinois.

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Illinois vs Louisiana

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Illinois vs Pennsylvania

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Illinois vs Rhode Island

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Illinois vs Utah

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Sources

Filing fee: law.justia.com/codes/illinois/chapter-805/act-805-ilcs-180/article-50/… · verified April 21, 2026
805 ILCS 180/50-10(b)(1): 'Filing articles of organization (domestic), application for admission (foreign), and restated articles of organization (domestic), $150.' Series LLC formation fee is $400 under the same subsection.
Expedited filing: law.justia.com/codes/illinois/chapter-805/act-805-ilcs-180/article-50/… · verified April 21, 2026
805 ILCS 180/50-50(e): Expedited fees include Articles of Organization $100, Articles of Amendment $100, Reinstatement $100, Application for Admission $100, Merger $200, Restated Articles $200. 24-hour turnaround for most expedited services.
Online filing portal: apps.ilsos.gov/llcarticles/index.jsp · verified April 21, 2026
Illinois Secretary of State online Articles of Organization filing portal.
Certificate of Formation form: www.ilsos.gov/publications/business-services/llc.html · verified April 21, 2026
Form LLC-5.5 Articles of Organization. PDF hosted at https://www.ilsos.gov/publications/pdf_publications/llc55.pdf
Business name search: apps.ilsos.gov/corporatellc/ · verified April 21, 2026
Illinois Secretary of State business entity search.
Operating agreement requirement: law.justia.com/codes/illinois/chapter-805/act-805-ilcs-180/article-1/ · verified April 21, 2026
805 ILCS 180/1-5 defines 'operating agreement' as an agreement 'whether oral, in a record, implied, or in any combination thereof.' No statutory requirement for a written operating agreement.
Publication requirement: law.justia.com/codes/illinois/chapter-805/act-805-ilcs-180/ · verified April 21, 2026
805 ILCS 180 imposes no newspaper publication requirement for LLC formation.
Foreign LLC registration fee: law.justia.com/codes/illinois/chapter-805/act-805-ilcs-180/article-50/… · verified April 21, 2026
805 ILCS 180/50-10(b)(1): Application for Admission (foreign LLC) fee is $150, same as domestic Articles of Organization.
Annual report fee: law.justia.com/codes/illinois/chapter-805/act-805-ilcs-180/article-50/… · verified April 21, 2026
805 ILCS 180/50-10(b)(11): Annual report fee $75, plus $50 per series for series LLCs. 805 ILCS 180/50-15(b)(1) penalty: $100 plus $100 for each year of delinquency. Deadline is before the first day of the anniversary month (§50-1(b)).
Franchise tax: tax.illinois.gov/research/taxrates/income.html · verified April 21, 2026
Illinois phased out the corporate franchise tax effective January 1, 2024 (P.A. 102-16). LLCs classified as partnerships pay Personal Property Replacement Tax at 1.5% of net income, but this is not classified as a franchise tax. No franchise tax applies to LLCs.
Corporate income tax rate: tax.illinois.gov/research/taxrates/income.html · verified April 21, 2026
Illinois corporate income tax is 7% of net income, plus 2.5% Personal Property Replacement Tax, for a combined 9.5% rate on C-corporation income. Individual income tax is 4.95% (flat).
Sales tax rate: tax.illinois.gov/questionsandanswers/answer.139.html · verified April 21, 2026
Illinois state general merchandise sales tax rate is 6.25%. Effective January 1, 2026, the 1% state grocery tax was eliminated. Local jurisdictions may impose additional taxes; combined rates vary by location.

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