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

Forming an LLC in Illinois requires a one-time initial filing fee of $150 paid to the Illinois Secretary of State. When accounting for standard registered agent compliance ($39-$125/yr), expect initial Year 1 costs to be approximately $189.

What are the annual recurring fees for a Illinois LLC?

Illinois charges an annual report fee of $75 filed on a annual basis (due First day of anniversary month). There is no state franchise tax on standard LLCs in Illinois.

What is the true 5-year cost of maintaining a Illinois LLC?

Over 5 years, the true cost of a Illinois LLC is approximately $645. This includes initial formation ($150), recurring annual reports ($75), statutory franchise taxes, and compliance support.

Can I form an out-of-state LLC (e.g. Wyoming or Delaware) if I live in Illinois?

While you can legally form an entity in Delaware or Wyoming, if your principal place of business, employees, or operations are located in Illinois, you must register as a Foreign LLC in Illinois. In Illinois, the foreign qualification filing fee is $150 plus ongoing maintenance of $75/year, often resulting in double fees.

Verified 2026 Statutory Guide

Illinois LLC Cost Calculator & 5-Year Taxes

Initial state filing fee: $150. Ongoing annual report fee: $75 (annual). No state franchise tax.

Compare Illinois vs Others

Direct Answer • 2026 Official Fee Schedule

Starting an LLC in Illinois costs $150 for the one-time Articles of Organization filing fee, plus $75/yr in recurring annual report fees. Over 5 years, maintaining a Illinois LLC costs an estimated $645.

Initial State Filing$150One-time payment

Annual Report$75Due First day of anniversary month

Franchise Tax$0none

Registered Agent$39–$125Annual service

Statutory Department: Illinois Secretary of State

Verify on State Website (.gov)

Illinois LLC 5-Year Cost Model

Adjust parameters below to model state filing fees, recurring franchise taxes, and compliance overhead.

Popular:

1. State of LLC FormationInitial: $150

Approval speed: 10-15 business days (instant expedited online)•Public Privacy: Standard

2. Where do you conduct business?

If you reside or hire employees in a different state from your LLC, that state requires Foreign Qualification registration.

3. Estimated Annual Gross Revenue$150,000

Illinois Tax Rule: Illinois Franchise Tax on LLCs was removed. Regular annual report is $75.

4. Registered Agent ServiceMandatory by law

5. Expedited State Processing

Expedited State Processing (+$100)

Accelerates state filing from 10-15 business days (instant expedited online) to 24-48 hours.

Deciding where to incorporate?

Compare Illinois vs Wyoming & Delaware →

Year 1 Setup Cost

$189

Initial formation fee ($150) + registered agent

Annual Maintenance

$114 /yr avg

Annual report ($75/yr)

5-Year True CostAll Hidden Fees Included

$645(~$11/mo)

Total 5-year statutory commitment to maintain legal compliance in Illinois.

5-Year Cost Trajectory & Fee Composition(Click any year to inspect)

Notice how initial filing fees are often dwarfed by recurring franchise taxes and maintenance.

Inspecting: Year 1 ($189)

$189

Year 1Formation

$114

Year 2Renewal

$114

Year 3Renewal

$114

Year 4Renewal

$114

Year 5Renewal

State Formation & Expedited

Franchise & Entity Taxes

Annual / Biennial Reports

Special Mandates (Publication, etc.)

Registered Agent Compliance

Home State Foreign Qualification

Year 1 Itemized Line Items

Total: $189

State Filing$150

Franchise Tax$0

Annual Report$0

Special / Pub$0

Registered Agent$39

Foreign Qual.$0

5-Year Budget Allocation by Cost Category

Total State Filings

$150

23% of 5-yr budget

Total Franchise Taxes

0% of 5-yr budget

Annual / Biennial Reports

$300

47% of 5-yr budget

Registered Agent Service

$195

30% of 5-yr budget

Publication / Mandates

0% of 5-yr budget

Founder Cost-Reduction Tip

Save on your Illinois filing fees & protect your personal privacy

Pro Tip: Filing directly through the state exposes your personal home address on public government records forever. You can keep your private details off the public registry and save time by using a top-rated Registered Agent service starting at $39 + state fees.

Free Home Address RedactionInstant Illinois Compliance AlertsAnnual Report Reminders

Get Started for $39 + State FeesRated 4.8/5 by 10,000+ founders • No hidden renewal spikes

Recommended Business BankingFDIC Insured up to $5M

Open a zero-fee business checking account for your Illinois LLC

Separate your business finances immediately to preserve limited liability corporate veil protection.

Explore Mercury ($0 Monthly Fees)

Illinois LLC Statutory Framework & Compliance Guide (2026)

Statutory requirements and fee schedules under the Illinois Secretary of State.

Official State Portal (.gov)

Annual Report Due DateFirst day of anniversary monthFrequency: ANNUAL

Normal Turnaround10-15 business days (instant expedited online)Expedited: +$100

Public Record PrivacyStandardRegistered agent protects personal address

State Personal Income Tax4.95% flat tax + 1.5% personal property replacement tax for LLCsLLC pass-through profits flow to owners

Illinois Franchise Tax & Business Privilege Tax Rules

Illinois Franchise Tax on LLCs was removed. Regular annual report is $75.

Advantages of a Illinois LLC

Huge commercial center in Chicago
Reduced formation fee from historical $500 down to $150

Drawbacks & Hidden Costs

1.5% Personal Property Replacement Tax on business net income
Strict filing deadlines

Founder Pro-Tip for Illinois

File online through cyberdriveillinois; paper filing takes over 3 weeks.

Step-by-Step Illinois LLC Formation Checklist (2026)

Choose an Available Entity Name

Must include "LLC", "L.L.C.", or "Limited Liability Company" and be distinguishable on the Illinois Secretary of State registry.

Appoint a Illinois Registered Agent

Must have a physical street address in Illinois (no P.O. boxes) to receive official service of process during regular business hours.

File Articles of Organization ($150 State Fee)

Submit electronically to the Illinois Secretary of State. Approval is typically granted within 10-15 business days (instant expedited online).

Execute an Operating Agreement & Obtain Federal EIN

Establish member capital contributions, voting rights, and obtain a free 9-digit EIN from IRS.gov for business checking accounts.

Maintain Ongoing Legal Good Standing (First day of anniversary month)

Submit the annual report with the $75 fee to prevent automatic forfeiture or late fee assessments.

Compare Illinois with Rival & Neighboring States

Evaluating formation options? Review fee structures in competing jurisdictions:

Filing: $100

Filing: $110

Filing: $300

Filing: $70