Which state is cheaper for an LLC: Illinois or Delaware?

Over 5 years, Illinois is cheaper with an estimated total cost of $645, compared to $1,805 for Delaware, saving you approximately $1,160.

Can I register in Delaware if I live and work in Illinois?

You can form an entity in Delaware, but if your principal residence or business operations are in Illinois, statutory nexus rules require you to register as a Foreign LLC in Illinois. In Illinois, the foreign filing fee is $150 plus annual foreign maintenance of $75/year.

2026 Head-to-Head Statutory Comparison

Illinois vs Delaware LLC

Operating an out-of-state Delaware LLC from Illinois requires paying Illinois's $150 foreign qualification fee and annual replacement taxes.

5-Year Cost Verdict: Illinois saves an estimated $1,160 over 5 years.

Illinois Model →Delaware Model →

Direct Side-by-Side Fee Matrix

Statutory 2026 Fee Schedules

Metric	Illinois	Delaware
Initial State Filing Fee	$150	$110
Annual Report Fee & Frequency	$75 (annual)	$0 (none)
Annual Franchise Tax	$0 / None	$300/yr
5-Year Estimated True Cost	$645	$1,805
Public Member Anonymity	Standard	High (Anonymous)
Foreign Qualification Fee	$150 upfront ($75/yr)	$200 upfront ($300/yr)

The Reality of Forming Out-of-State

Operating in Illinois with a Delaware LLC?

If you live or conduct physical business in Illinois and form in Delaware, you must register as a Foreign LLC in Illinois. This means paying Delaware's formation fee ($110) PLUS Illinois's foreign filing fee ($150) and two annual registered agent fees.