Form a LLC in Illinois
Everything you need to know about forming a LLC in Illinois. Filing fees, requirements, timeline, and step-by-step guidance.
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How to File
Choose a Business Name
Select a unique name for your LLC that includes 'Limited Liability Company,' 'LLC,' or 'L.L.C.' and is distinguishable from existing business names in Illinois. Use the Illinois Secretary of State business name search tool to verify availability before filing.
30 minutes
Designate a Registered Agent
Appoint a registered agent who has a physical street address in Illinois and is available during normal business hours to receive legal documents and official notices on behalf of your LLC. This can be an individual Illinois resident or a registered commercial agent service.
15 minutes
File Articles of Organization
Complete and file Form LLC-5.5 (Articles of Organization) with the Illinois Secretary of State, either online at ilsos.gov or by mail. The filing fee is $150 and requires the LLC name, registered agent information, principal address, and purpose of the business.
1 hour
Obtain an EIN from the IRS
Apply for a Federal Employer Identification Number (EIN) from the IRS online at irs.gov, which is free and typically issued immediately. An EIN is required to open a business bank account, hire employees, and file federal and state taxes.
15 minutes
What's Next After Filing
Once your LLC is officially formed, you'll want to complete these important steps:
- •Draft an Operating Agreement — Although not legally required by Illinois law, it is strongly recommended to create an operating agreement that outlines ownership structure, member roles, profit and loss distribution, and operating procedures. This document helps prevent disputes and reinforces the LLC's limited liability protection.
- •Register for Illinois State Taxes — Register with the Illinois Department of Revenue through MyTax Illinois (mytax.illinois.gov) to obtain any required state tax accounts, including sales tax permits, employer withholding accounts, or other applicable tax registrations depending on your business activities.
- •File Annual Report and Maintain Compliance — File an Annual Report with the Illinois Secretary of State each year before the first day of the LLC's anniversary month, with a $75 filing fee. Maintain a registered agent, keep records up to date, and obtain any required local business licenses or permits to remain in good standing.
Advantages
- ✓Limited liability protection shields members' personal assets from business debts and lawsuits
- ✓Flexible management structure allows member-managed or manager-managed arrangements with fewer formalities than a corporation
- ✓Pass-through taxation by default avoids double taxation, with profits and losses reported on members' personal tax returns
- ✓Single-member LLCs are permitted, making it accessible for solo entrepreneurs seeking liability protection
Considerations
- •Annual report fee of $75 and personal property replacement tax (1.5% of net income) add to ongoing compliance costs compared to some other states
- •Illinois has relatively higher formation and maintenance costs compared to states like Wyoming or Delaware, making it less attractive for holding companies
- •Self-employment taxes still apply to active members on their share of LLC income, which can be a significant tax burden
Annual Obligations
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