How to Start an LLC in Illinois (2026)
Illinois costs a bit more upfront than some states — a $150 filing fee and a $75 Annual Report — but its flat 4.95% income tax and clear rules make it a straightforward state to operate in. This guide walks all 8 steps, with a cost calculator and the details other guides skip.
It costs $150 to file Illinois's Articles of Organization, with approval typically within 5–10 business days online. The required Annual Report costs $75 every year, due before the first day of your LLC's anniversary month — an unusual detail that trips people up. Illinois has no franchise tax for LLCs, but multi-member LLCs pay a 1.5% Personal Property Replacement Tax on top of the state's flat 4.95% individual income tax.
- Filing fee
- $150
- Processing
- 5–10 business days
- Annual Report
- $75/yr
- Report due
- Before anniversary month
- State income tax
- Flat 4.95%
- PPRT (multi-member)
- 1.5%
- Formation doc
- Articles of Org.
Why Form an LLC in Illinois?
Illinois's $150 filing fee sits toward the middle of the national range, but the state's straightforward flat-tax structure makes ongoing compliance easier to plan around than many states:
- Flat 4.95% income tax — no brackets to calculate, the same rate applies regardless of income level.
- No franchise tax on LLCs — that separate business-privilege tax only applies to corporations in Illinois.
- Fast processing — typically 5–10 business days online, with expedited service available for 1–2 day approval.
- No general statewide business license — fewer licensing hoops than many states, though Chicago and other municipalities have their own requirements.
- Series LLC option — Illinois is one of a handful of states that allows a single LLC to house multiple protected "series," useful for real estate investors managing several properties.
Illinois LLC Cost Calculator
Toggle the options to see your total first-year cost:
Estimates only. Registered agent pricing varies by provider. Your first Annual Report isn't due until the year after formation, so most LLCs' actual first-year cash outlay is just the $150 filing fee. Not legal or tax advice.
The 8 Steps to Start Your Illinois LLC
Here's the full path from name to taxes. Each step has its own detailed guide with a tool to make it easier — the filing that legally creates your company is Step 3: Articles of Organization:
Illinois's Flat Income Tax & PPRT
Illinois uses a flat 4.95% individual income tax rate — no brackets. As a default pass-through LLC, your share of profits flows to your personal return, taxed federally and then at Illinois's single flat rate. The detail many guides miss: multi-member LLCs (taxed as partnerships by default) also owe Illinois's Personal Property Replacement Tax (PPRT) — an additional 1.5% on net income, paid by the entity separately from the owners' personal returns. Single-member LLCs taxed as sole proprietorships are not subject to PPRT. We break the full picture down, with an estimator, in Step 8: Illinois LLC Taxes.
Illinois's Annual Report deadline runs backward from most statesYour report is due before the first day of your LLC's anniversary month — not by the last day of that month. Form in June and your report is due by May 31 every year, not June 30. See Step 6 for the full breakdown.
- ✓Forms your Illinois LLC for $39 + the $150 state fee
- ✓Tracks your unusual Annual Report deadline for you
- ✓Free Illinois registered agent the first year
- ✓No upsells · No data selling · Privacy by Default
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Illinois LLC — FAQ
Ahmad Adil is the founder and CEO of LLC School. The figures here — the $150 Articles of Organization fee, the $75 Annual Report, and Illinois's flat 4.95% state income tax plus 1.5% PPRT for multi-member LLCs — reflect current Illinois Secretary of State and Department of Revenue guidance. This is educational content, not legal or tax advice.
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