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1Illinois LLC Formation
To form an LLC in Illinois, you'll need to file Articles of Organization with the Illinois Secretary of State.
Formation Details
- Filing Fee: $150
- Processing Time: Online: 1-2 business days; Mail: 6-8 weeks
- Official Website: https://www.ilsos.gov
2Annual Report Requirements
Illinois requires LLCs to file a annual report to maintain good standing with the state.
Annual Report Details
- Filing Fee: $75
- Due Date: Before the first day of the LLC's anniversary month each year
- Frequency: Annually
3Registered Agent Requirements
Illinois requires all LLCs to maintain a registered agent.
Can You Be Your Own Registered Agent?
Yes, you can serve as your own registered agent in Illinois.
Requirements: Must be an Illinois resident or a business entity authorized to do business in Illinois with a physical street address in Illinois (not a PO Box). Must be available during regular business hours to accept service of process.
4Foreign LLC Registration
If your LLC was formed in another state but you want to do business in Illinois, you'll need to register as a foreign LLC.
Foreign LLC Registration
- Registration Fee: $150
- Requirements: Application for Admission to Transact Business, certificate of existence (good standing) from home state not older than 60 days, and a registered agent in Illinois.
5Illinois LLC Taxes
Illinois has a flat 4.95% personal income tax. LLCs taxed as pass-through entities are subject to a 1.5% Personal Property Replacement Tax (PPRT) on net income distributed to corporate partners, and a 2.5% PPRT for individuals.
Franchise Tax
Illinois imposes a Personal Property Replacement Tax (PPRT) of 1.5% on net income for LLCs with corporate partners, and 2.5% for LLCs with individual partners.
6Penalties for Non-Compliance
Late Filing Penalties
$300 penalty for late annual report filing. Additional $100/month after the anniversary date.
Administrative Dissolution Risk
LLC may be administratively dissolved for failure to file the annual report. Reinstatement requires paying all overdue fees and penalties.
Key Considerations for Illinois LLCs
- Annual report due before the anniversary month — earlier than most states
- $150 formation fee is moderate compared to neighboring states
- Personal Property Replacement Tax applies to LLC net income
- Chicago-area LLCs may face additional city and county tax obligations
- Illinois has no state franchise tax on LLCs (PPRT is different from a franchise tax)
- Online filing through the Illinois Secretary of State Business Services portal
Important Disclaimer
This article is for informational purposes only and does not constitute legal advice. LLC requirements, fees, and deadlines change frequently. Always verify current requirements with your state's Secretary of State office before making business decisions.
Related Illinois LLC Articles
Official Resources
For the most up-to-date information, always check the official Illinois Secretary of State website:
https://www.ilsos.gov