Chicago is a major business center with access to Midwest markets
Moderate filing fees with predictable ongoing expenses
Illinois offers a stable business environment with access to major Midwest markets. Chicago serves as a major transportation and financial hub, making it attractive for businesses that need central US access or serve the Great Lakes region.
Central US location with excellent transportation infrastructure
Strong sectors in manufacturing, agriculture, technology, and finance
Well-developed business laws and court system
Unlike New York, no need to publish formation notice in newspapers
Base Filing Fee
$150
Online Convenience Fee
$5
Registered Agent (Optional)
$99-199/year
Processed within 2 business days
Processed within 24 hours
Your LLC name must be unique and include "Limited Liability Company," "LLC," or an acceptable abbreviation. Check availability using the Illinois Secretary of State's business entity search.
Illinois requires a registered agent with an Illinois address. This can be yourself (if you have an Illinois address), another person, or a professional service.
Submit your Articles of Organization to the Illinois Secretary of State online or by mail. Online filing is faster and includes the $5 convenience fee.
Standard Processing
10-15 business days
Express Service (+$75)
2 business days
Premium Service (+$200)
24 hours
Illinois LLCs must file annual reports on the anniversary of their formation. The report is due by the last day of the anniversary month with a $75 fee (plus $5 online convenience fee for electronic filing).
You must maintain a registered agent with an Illinois address at all times. If your registered agent resigns or you need to change agents, file an Amendment to Articles of Organization.
Illinois doesn't impose a franchise tax on LLCs, keeping ongoing costs limited to the annual report fee and any applicable business licenses.
Illinois has a flat state income tax rate of 4.95% on individual income. LLCs are pass-through entities, so profits are taxed on members' personal returns.
Illinois has a state sales tax rate of 6.25%, with additional local taxes that can bring the total rate to over 10% in some areas (particularly Chicago).
Some Illinois localities impose personal property taxes on business equipment and inventory. Check with your local assessor's office for specific requirements.
Obtain an Employer Identification Number (EIN) from the IRS. This is required for tax filings, opening business bank accounts, and hiring employees.
Register for applicable Illinois taxes:
Required if you have employees
Required if selling taxable goods or services
Required if you have employees
Depending on your business type and location, you may need:
While not required by Illinois law, an operating agreement is highly recommended to establish governance rules, profit distribution, and member rights and responsibilities.
If operating in Chicago, additional requirements may apply:
Illinois requires workers' compensation insurance for most businesses with employees. Some industries have specific requirements even for independent contractors.
Illinois has strict laws regarding biometric data collection (fingerprints, facial recognition, etc.). Businesses collecting such data must comply with specific notice and consent requirements.
Annual reports are due on your formation anniversary, not a fixed date
Budget $155 for online filing, not just $150
Sales tax registration required before making taxable sales
Ensure your registered agent is reliable and always available
Research all applicable business licenses before starting operations
State | Filing Fee | Annual Cost | Income Tax Rate |
|---|---|---|---|
Illinois | $155 | $80 | 4.95% |
| Wisconsin | $130 | $25 | 3.54%-7.65% |
| Indiana | $95 | $30 | 3.23% |
| Michigan | $50 | $25 | 4.25% |
| Iowa | $50 | $45 | 0.33%-8.53% |
Illinois LLCs work well for:
Central location for regional operations
Major hub for shipping and distribution
Strong industrial base and infrastructure
Large business community in Chicago area
Neighboring states have lower filing and annual fees
States like Texas and Florida have no income tax
Sales tax rates can be high, especially in Chicago
Illinois has strict regulations in some sectors
Take advantage of Illinois's central location and business infrastructure. We'll handle the formation process and ongoing compliance requirements.
Learn about Illinois's new $5 online convenience fee and other 2025 changes.
Illinois annual reports are due on your formation anniversary - don't miss the deadline.