How to Start an LLC in Illinois
Form your Illinois LLC online with transparent pricing, registered agent service and real human support. Incofile prepares and files your Articles of Organization for you.
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Illinois LLC filing fee & timeline
To form an LLC in Illinois you file your Articles of Organization with the state and pay the state filing fee of $150. Incofile adds a flat, one-time service fee on top — no monthly charges — and your total is always shown before you pay.
Most Illinois LLC filings are prepared and submitted within one business day. State approval time depends on Illinois's current processing queue, typically ranging from a few business days to a few weeks, with expedited options available in many states.
Why form an LLC in Illinois
Illinois — home to Chicago, the third-largest US city — is a strong market for service businesses, trades and e-commerce. Forming an LLC costs $150 and there is no franchise tax on LLCs, but you will file a $75 annual report each year and LLCs taxed as partnerships pay Illinois's 1.5% replacement tax on net income. The state also offers the EDGE tax credit for businesses that create jobs.
Illinois LLC at a glance
| State filing fee | $150 (Articles of Organization, Form LLC-5.5) |
|---|---|
| Document filed | Articles of Organization (Form LLC-5.5) |
| Standard approval time | About 10 business days online · longer by mail |
| Expedited option | +$100 state fee for faster processing |
| Annual report | $75 a year, due before the first day of your anniversary month |
| Late penalty | $100, plus $100 for each further year the report is late |
| Name reservation (optional) | $25 |
| State income tax | Owners pay Illinois's flat 4.95% personal income tax on their share of profit |
| Replacement tax | 1.5% on net income for LLCs taxed as partnerships (2.5% if taxed as a corporation) |
| Registered agent | Required; must have a physical street address in Illinois |
State figures checked against the Illinois Secretary of State, Department of Business Services, September 2026. State fees are set by Illinois and can change; the exact total is shown before you pay.
How to form an LLC in Illinois — 4 steps
Choose your package
Pick the Incofile package that fits your goals. Your Illinois state filing fee is shown before you pay.
Tell us about your LLC
Complete our short form with your company name, address and ownership details — about ten minutes.
We check & file with Illinois
We confirm your name is available and file your Articles of Organization with the Illinois state office.
Get your documents
Your approved Illinois LLC documents land in your dashboard, with reminders for your annual report and other deadlines.
What you need to form an LLC in Illinois
- A business name that is available and meets Illinois's naming rules (it must include “LLC” or “Limited Liability Company”).
- A registered agent with a physical address in Illinois — Incofile can be your agent.
- Articles of Organization filed with the Illinois state office — we prepare and submit these for you.
- An operating agreement and EIN to open a business bank account (included in our Gold and Platinum packages).
- Ongoing compliance — Illinois's reports, taxes and registered agent rules (see below). We track the deadlines and remind you.
Operating agreement
An operating agreement sets out who owns the LLC, how profits are split, how decisions are made and what happens if a member leaves. Illinois does not ask you to file it with the state, but banks usually want to see it, and without one the state's default rules apply. Incofile includes a customised operating agreement in the Gold and Platinum packages.
EIN (Employer Identification Number)
Your EIN is the federal tax ID for your LLC. You need it to open a business bank account, hire staff and file taxes. The IRS issues it free — online in minutes if you have a Social Security number, or by fax or mail (one to eight weeks) if you don't. Our Gold and Platinum packages include it, and it is also available as a separate service.
This is general information, not legal advice. If you're unsure which structure is right, compare LLC vs S-Corp vs C-Corp.
Illinois LLC naming rules
The name must contain "Limited Liability Company", "LLC" or "L.L.C." and must be distinguishable from every entity on the Illinois register. It may not contain words such as "Corporation", "Incorporated" or "Limited Partnership". Check availability with our free business name search.
Keeping your Illinois LLC compliant
Annual report
File your annual report with the Secretary of State within the 60 days before the first day of your LLC's anniversary month. The fee is $75. Filing late adds a $100 penalty, and $100 more for each extra year, and eventually leads to dissolution.
Registered agent
Illinois requires a registered agent with a physical Illinois street address, available during business hours. If you form from outside Illinois, you will need a professional agent — Incofile can act as yours.
Taxes
There is no franchise tax on Illinois LLCs. Owners pay the flat 4.95% Illinois income tax on their share of profit, and an LLC taxed as a partnership files an Illinois partnership return and pays the 1.5% Personal Property Replacement Income Tax. Selling taxable goods requires registration with the Illinois Department of Revenue.
Licences
Illinois has no general state business licence, but Chicago and many other cities require a local business licence, and regulated professions are licensed by the IDFPR.
Incofile clients get every Illinois deadline tracked in their dashboard with email reminders — see registered agent service.
Official Illinois resources
Illinois LLC — frequently asked questions
How much does it cost to start an LLC in Illinois?
Incofile charges a flat, one-time formation fee (Silver, Gold or Platinum) plus the Illinois state filing fee of $150. There are no monthly charges, and the total is shown before you pay.
How long does it take to form an LLC in Illinois?
Online filings usually take around 10 business days. Illinois offers expedited processing for an extra $100 state fee.
Do I need a registered agent in Illinois?
Yes. Illinois requires every LLC to have a registered agent with a physical address in the state to receive legal and state mail. Incofile can serve as your Illinois registered agent so you stay compliant and keep your address private.
Can I start an LLC in Illinois if I live in another state or country?
Yes. You do not need to live in Illinois to form an LLC there. Incofile can act as your registered agent and provide a business address, so you can form and run your Illinois LLC from anywhere.
When is the Illinois annual report due?
Before the first day of your LLC's anniversary month each year — you can file in the 60 days before that date. An LLC formed on 15 June files between early April and 31 May every year.
Does an Illinois LLC pay franchise tax?
No. Illinois franchise tax applies to corporations, not LLCs. An LLC taxed as a partnership does pay the 1.5% Personal Property Replacement Income Tax on its Illinois net income.
Can I form a series LLC in Illinois?
Yes. Illinois allows series LLCs, which can hold separate assets in separate "series" under one company. Forming one costs $400 instead of $150 and has extra paperwork; ask us before ordering if you need it.
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Most orders are prepared and submitted within one business day.
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