How to form an LLC in Illinois

Illinois cut its LLC fees sharply in 2017, and forming one is now straightforward. Two details catch owners out: the annual report is due before the anniversary month, not during it, and the state's replacement tax. This guide covers both.

By Awais Jameel, Chartered Accountant. Reviewed by Hamza Fida, Chartered Accountant. Checked against official sources on . 3 minute read.

Short answer

To form an LLC in Illinois, file Articles of Organization with the Illinois Secretary of State and pay $150, or $250 for 24-hour service. Each year, file an annual report for $75 before the first day of the LLC's anniversary month. Illinois also charges a replacement tax on the income of LLCs taxed as partnerships or S corporations.

At a glance

State filing fee
$150, or $250 for 24-hour service
Annual report
$75 a year
Annual report due
Before the first day of the anniversary month
Articles list
Managers, and members with management authority
Replacement tax
On partnership and S corporation income
Where to file
Illinois Secretary of State, Department of Business Services
How to form an LLC in IllinoisState filing fee: $150, or $250 for 24-hour service; Annual report: $75 a year; Annual report due: Before the first day of the anniversary month; Articles list: Managers, and members with management authority; Replacement tax: On partnership and S corporation income; Where to file: Illinois Secretary of State, Department of Business Services.KEY FACTS AT A GLANCEHow to form an LLC in IllinoisState filing fee$150, or $250 for 24-hourserviceAnnual report$75 a yearAnnual report dueBefore the first day ofthe anniversary monthArticles listManagers, and memberswith management authorityReplacement taxOn partnership and Scorporation incomeWhere to fileIllinois Secretary ofState, Department ofBusiness ServicesChecked against official sourcesTax BakersHow to form an LLC in IllinoisState filing fee: $150, or $250 for 24-hour service; Annual report: $75 a year; Annual report due: Before the first day of the anniversary month; Articles list: Managers, and members with management authority; Replacement tax: On partnership and S corporation income; Where to file: Illinois Secretary of State, Department of Business Services.KEY FACTS AT A GLANCEHow to form an LLC in IllinoisState filing fee$150, or $250 for 24-hour serviceAnnual report$75 a yearAnnual report dueBefore the first day of the anniversarymonthArticles listManagers, and members with managementauthorityReplacement taxOn partnership and S corporation incomeWhere to fileIllinois Secretary of State, Department ofBusiness ServicesChecked against official sourcesTax Bakers
Key facts at a glance, as set out in this guide.

Who should form an LLC in Illinois?

Anyone who lives in Illinois or runs their business from there. If you form in another state but operate in Illinois, you will usually have to register there as a foreign LLC anyway, paying both states' fees. See home state or another state.

How do you form an LLC in Illinois, step by step?

  1. Choose and check the name

    Search the state's business records and include "LLC", "L.L.C." or "Limited Liability Company" in the name.

  2. Appoint a registered agent

    A person or company with a physical street address in Illinois. See what a registered agent is.

  3. File the Articles of Organization

    Online through the Secretary of State's website, or by mail, with the $150 fee. The Articles ask for the name, principal place of business, purpose, registered agent and office, duration, and the managers or members with management authority.

  4. Get an EIN and sign an operating agreement

    The EIN is free from the IRS. See LLC operating agreement.

  5. Register for state taxes

    Sales tax and payroll as needed. Then note the first yearly filing date.

What does Illinois require every year?

An annual report each year for $75, due before the first day of the LLC's anniversary month. An LLC formed in May, for example, files by April 30 each year. Late reports carry a penalty, and continued failure leads to administrative dissolution.

For deadlines, fees and late penalties in detail, see Illinois LLC yearly filings.

Who appears on the public record?

Illinois Articles name the managers, and members with management authority, so the people running the LLC are generally on the public record.

Illinois also allows series LLCs, at a higher filing fee. See what a series LLC is.

Should you file it yourself or use a formation service?

Filing yourself costs only the state fee, and the Illinois filing is short enough for most owners to complete. A formation service saves time, can act as your registered agent and may send reminders for yearly filings, but compare total yearly costs: low headline prices are often paired with paid add-ons such as expedited filing, operating agreements or EIN applications, which you can do yourself free. Whichever you choose, keep the approved filing, the EIN letter and your operating agreement together. See how much an LLC costs.

Can a non-resident form an LLC in Illinois?

Yes. Illinois has no residency or citizenship requirement for an LLC's members or managers. You need a registered agent with a Illinois street address and an EIN; a foreign owner without a Social Security number applies for the EIN on Form SS-4. A single-member LLC owned by a foreign person files Form 5472 with a pro forma Form 1120 every year, even with no US income. See can a non-resident own a US LLC and annual filings for foreign-owned LLCs.

What happens if you miss a required report?

The state usually charges a late fee and marks the LLC as not in good standing, which can block a certificate of good standing, a bank account or a loan. If the filing stays overdue, the state can administratively dissolve the LLC, ending its liability protection and its claim to the name. Reinstatement means filing every missing report and paying the fees owed, so put the dates in your calendar. See reinstating a dissolved LLC.

Which Illinois taxes apply to an LLC?

Illinois has a flat personal income tax on owners' shares of profit. It also charges a personal property replacement income tax on the net income of partnerships and S corporations, including LLCs taxed as either, paid by the business itself. Illinois has a state sales tax with local taxes on top.

If you sell online, see Illinois sales tax for online sellers.

Federally, a Illinois LLC is taxed like any other LLC. See how LLCs are taxed. For a side-by-side view of state costs, see how much an LLC costs.

Want your Illinois LLC formed?

We file your Articles of Organization, arrange the registered agent and EIN, and keep track of every Illinois deadline for you.

Book a call Chat on WhatsApp

Questions people ask

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

$150 to file Articles of Organization, or $250 for 24-hour service, then $75 a year for the annual report.

When is the Illinois LLC annual report due?

Before the first day of the LLC's anniversary month each year.

Does Illinois tax LLCs directly?

LLCs taxed as partnerships or S corporations pay Illinois replacement tax on their net income.

Do Illinois Articles of Organization list the owners?

They list managers, and members with management authority.

Sources

Every fee, date and rule on this page was taken from these official and primary sources.

  1. Illinois Secretary of State: Department of Business Services LLC fees
  2. Illinois Limited Liability Company Act, 805 ILCS 180
  3. IRS: Get an employer identification number
  4. IRS: Employer identification number, including international applicants

Rules and fees change. If you are reading this long after September 30, 2026, confirm the figures with the source before you rely on them.

Starting a US companyHow much does it cost to start an LLCBusiness tax by entity typeFranchise tax explained: which states charge itStarting a US companyShould you form your LLC in your home state or another state

More in State LLC formation

Previous in this topicHow to form an LLC in IdahoNext in this topicHow to form an LLC in IndianaTopicAll 51 guides in State LLC formation

This guide is general information. It is not tax or legal advice for your situation.