Illinois LLC Cost
Your main cost when starting an LLC in Illinois will be the state’s LLC registration fee, which is $150. On top of that, you’ll need to shell out $75 each year to file your Illinois annual report. You’ll also have additional expenses to think about, like hiring a registered agent and purchasing business insurance. Here, we’ve provided an overview of the costs of starting an LLC in Illinois, necessary and optional.
What You’ll Find In This Article:
- Illinois LLC Formation Filing Fee
- Illinois Annual Report Fee
- Illinois Registered Agent Fee
- Illinois State Tax Permit Fee
- Illinois State Business License Fees
- Illinois Professional Licensing Fees
- Local Business License Fees in Illinois
- Optional LLC Fees in Illinois
- Business Insurance Premiums
- Cost to Register a Foreign LLC in Illinois
Illinois LLC Formation Filing Fee: $150
To officially register your Illinois LLC with the state, you’ll need to file Illinois Articles of Organization with the Secretary of State’s office. The filing fee is $150 for a regular LLC (add $100 for 24-hour processing—otherwise, it will take about ten business days). However, if you form an Illinois Series LLC (a special kind of LLC that consists of master LLC and a number of so-called “child” series), you’ll have to pay more. The filing fee for an Illinois Series LLC starts at $400 without expediting. You can file your articles by mail, in person, or online. If you file online, you must use a credit card and will be charged a small processing fee.
Illinois Annual Report Fee: $75
In Illinois, LLCs are required to pay $75 every year to file an annual report with the Secretary of State (an Illinois Series LLC pays this amount plus an additional $50 for each of its child series). The due date is the first day of your LLC’s anniversary month. So, for example, if you formed your LLC in November 2022, your annual report would be due November 1st, 2023. Even though you don’t need to pay your annual report fee right away, it will be part of your bottom line for the year, so it’s good to keep it in mind.
Find out how to file your Illinois Annual Report.
Illinois Registered Agent Fee
Illinois law (805 ILCS 180) requires all LLCs to appoint an Illinois registered agent. A registered agent is the person or company that you appoint to accept legal correspondence on behalf of your LLC, and you must list their name and address in your Articles of Organization.
It’s possible for you or another member of your LLC to serve as your company’s registered agent, but it can be advantageous to hire a registered agent service. Hiring a registered agent service can help you protect your privacy by limiting the amount of personal information you include in your formation paperwork. You’ll also never miss important legal notices when you’re out of the office. Fees for registered agent services vary. At Northwest, we charge $125 per year, and we never raise our price.
Illinois State Tax Permit Fee: $0
All businesses in Illinois need to obtain a Certificate of Registration or a License tax permit to operate legally within the state. Registering for your permit is free, and Illinois gives you the option to register by mail or online through the MyTaxIllinois portal.
Illinois State Business License Fees
There’s no state-level general business license in Illinois, but you may need to get additional licenses or permits based on your industry. For example, if you run a restaurant that serves alcohol, you’ll be required to obtain a liquor license. Fees for industry-specific licenses and permits vary. You can find information about license and permit types and costs through the Illinois Business Registrations, Licenses & Permits website.
Illinois Professional Licensing Fees
If you work in a profession that requires specialized training or education to perform, you may need to get a professional license. The application process and price varies by license. For example, say you own a barbershop and also work there as a barber. You’ll need to pass the Licensed Barber Examination, which costs $107, and file an application for Salon/Shop registration, which costs $50. To get more information on professional licenses in your field, visit the Illinois Professional Licenses page.
Local Business License Fees in Illinois
Based on where your LLC operates, you may also need to get a city- or county-level business license. In Cook County, for example, you’ll be required to purchase a $40 general business license, which is good for a two-year period. In Aurora, only certain types of businesses, including pawn shops and taxis, need city-level licenses.
Optional LLC Fees in Illinois
So far, we’ve gone over the most critical expenses you’ll encounter when starting an LLC in Illinois, but there are additional costs to consider.
It’ll cost you $25 to file an Application to Reserve a Name in Illinois. You may do this if you’re not ready to submit your Articles of Organization but you want to make sure that you get the business name you prefer. After your application has been filed, you’ll have exclusive rights to your desired name for 90 days.
DBA (Doing Business as) Name
Planning to do business under a name that isn’t your legal business name? You’ll need a DBA. In Illinois, a DBA is called an assumed name, and you’ll need to file an Application to Adopt, Change, Cancel or Renew an Assumed Name with the Secretary of State to get one.
Assumed names in Illinois are effective for five-year periods, beginning and ending on years that end in 0 and 5, so initial filing fees vary depending on what year you file. If you file on a year ending in 0 or 5, you’ll pay $150 for your initial filing fee. For years ending in 1 and 6, you’ll pay $120; for years ending in 2 and 7, you’ll pay $90; for years ending in 3 and 8, you’ll pay $60; and for years ending in 4 and 9, you’ll pay $30.
You can renew your assumed name within the 60 days prior to your expiration date, which is the first day of the month you initially filed in the next year ending with 0 or 5. Renewal costs $150.
Certified Copies of Business Documents
You can order certified copies of your business documents from the Illinois Secretary of State, which costs $25 for routine processing (completed within ten business days). Expedited processing (completed within 24 hours) is available and costs $20 for a Certificate of Good Standing and $50 for all other documents. You can order certified copies in person, online, or by mail, email, or fax.
Illinois Certificate of Good Standing
The filing fees for a Certificate of Good Standing are $25 for regular and $45 for expedited processing. If you need to show that your LLC is current on its taxes and state reports, you’ll need a Certificate of Good Standing. This is common in situations like soliciting funds from a bank or investor or registering to do business in a foreign jurisdiction. You order your certificate in person, online, or by mail, email, or fax. You’ll need to pay a credit card processing fee for online orders.
Here’s how to get an Illinois Certificate of Good Standing.
Business Insurance Premiums
Depending on the type of work you do and how many employees you have, your LLC may need some form of business insurance. For example, if you work in an industry where there’s any risk of being sued, you may want to invest in liability insurance. The cost of business insurance will vary based on the level of risk associated with your business and the level of protection you desire.
If you have at least one employee, full- or part-time, you’ll be required to obtain workers’ compensation insurance in Illinois. Members of your LLC may exempt themselves from coverage, but you can always purchase coverage for yourself and other members as a precaution. Unfortunately, Illinois doesn’t have a state fund for worker’s compensation insurance, so you’ll need to get coverage through a qualified private insurer or insure yourself (as long as you meet the requirements, such as demonstrating that you have the financial ability to compensate employees in a timely manner). The cost will vary according to how many employees you’re insuring and the level of hazard involved with the work your employees perform.
Learn more about LLC Business Insurance.
How much does it cost to register a foreign LLC in Illinois?
If your LLC was formed in another jurisdiction, but you want to start doing business in Illinois, you can register as an Illinois foreign LLC. You’ll need to file an Application for Admission to Transact Business with the Illinois Secretary of State. You can submit your application by mail or in person. The filing fee is $150 for LLCs and $400 for series LLCs for regular processing (completed within fourteen business days). For another $100, you can get expedited processing when filing in person (completed within 24 hours).