Forming an LLC in
Illinois IL
Checked November 4, 2026 · How we score
Filing fee
$150
Articles of Organization
Annual fee
$75
per year, normalised
State income tax
4.95%
top rate
Cost rank
#37
of 51, first-year fees
Illinois LLC costs
| Filing fee | $150 |
|---|---|
| Annual report / franchise fee | $75 Annual report: $75, due before the first day of your formation anniversary month. |
| First-year state fees | $225 |
| Registered agent | Required (about $50–$300/year if you don't use your own address in the state) |
| Newspaper publication | No |
| Anonymous ownership | No |
| Processing time | 7 days |
Illinois taxes for LLCs
| Personal income tax (top) | 4.95% Flat 4.95%. |
|---|---|
| Corporate income tax | 9.5% 9.5% combined (7% income tax + 2.5% personal property replacement tax). |
| State sales tax | 6.25% |
| Franchise / gross receipts | 1.5% personal property replacement tax on pass-through LLC income; corporations pay franchise tax on paid-in capital. |
A single-member LLC is a disregarded entity: profit flows to the owner's personal return. Federal income tax applies in every state. Non-US owners without US-source business income generally owe no US income tax but must file Form 5472 with a pro-forma 1120 each year.
Pros and cons
Why form in Illinois
- Series LLC statute is available
- Flat 4.95% income tax
- Large business ecosystem in Chicago
Watch out for
- $150 fee plus $75 annual report is above average
- 1.5% replacement tax on pass-through income
Best for: Illinois-based businesses · Series LLC structures for real estate
Illinois LLC: common questions
How much does an LLC cost in Illinois?
Filing the Articles of Organization in Illinois costs $150. After that, expect $75 a year for the annual report. Annual report: $75, due before the first day of your formation anniversary month. A commercial registered agent, if you need one, is typically $50–$300 a year extra.
Do I need a registered agent in Illinois?
Yes. Illinois requires every LLC to keep a registered agent with a physical street address in the state to accept legal and tax notices. You can act as your own agent if you live there, but non-residents and owners who want privacy usually pay a commercial agent, typically $50–$300 a year.
Can a non-US resident form an LLC in Illinois?
Yes. Illinois does not require US citizenship, residency or an SSN to own an LLC; you need a Illinois registered agent address and then an EIN from the IRS (by fax or mail with Form SS-4 if you have no SSN). A foreign-owned single-member LLC must also file Form 5472 with the IRS every year, even with no US income. Check what Illinois publishes, since member or manager names may appear in public filings.
Does Illinois have a state income tax?
Yes. Flat 4.95%. LLC profits normally pass through to the owners' personal returns. Corporate income tax: 9.5% combined (7% income tax + 2.5% personal property replacement tax).
Does Illinois allow series LLCs?
Yes. Illinois has a Series LLC Act that lets an LLC create separate series with their own assets and liabilities, for an extra $50 per series registered with the Secretary of State. Many real estate investors use it, but lenders and other states may not always honour the liability separation.
Sources
Illinois Secretary of State business filings
- Illinois Secretary of State / business filing office
- Tax Foundation – 2026 state income tax rates
- LLC University – LLC filing and annual fees by state (cross-check)
Similar states
Not tax or legal advice. Rates and rules change; we check official sources and update every page, but verify with a licensed adviser in the country before acting. Spotted something out of date? Use the correction form below.