Illinois LLC Cost: $150 to File Articles (2026)

Fact-checked and updated September 14, 2026.

An Illinois LLC costs $150 to file Articles of Organization (Form LLC-5.5) with the Illinois Secretary of State. The SOS annual report is $75 each year in the 60-day window before the anniversary month. Illinois LLCs do not owe a corporate franchise tax—do not label the annual report or formation fee as franchise tax. Separately, IDOR may assess Personal Property Replacement Tax (PPRT) when an LLC is taxed as a partnership and has Illinois net income; that is not an SOS franchise fee. You can file through ILSOS online services or use ZenBusiness Starter for a $0 formation service fee plus the same $150 state fee. Optional services cost extra.

This guide is for creating a new Illinois LLC. If you already have an LLC formed in another state, check Illinois’s foreign LLC registration requirements before creating a second company.

Illinois LLC costs: required fees and optional extras

Start with 805 ILCS 180/50-10 and the ILSOS LLC forms/fees publications. These are government charges, separate from anything a formation company bills you.

Budget example: $150 to form plus $75 for the first on-time annual report equals $225 in those core SOS charges—before licenses, insurance, taxes, or professional help. Card payment processor convenience amounts are variable and are not statutory filing fees.

Franchise tax vs. PPRT (read carefully): Illinois corporate franchise tax historically applied to corporations and is not an LLC SOS fee. Do not list “franchise tax” on an Illinois LLC cost table. If your LLC is classified as a partnership for tax purposes, IDOR partnership / replacement-tax guidance explains Personal Property Replacement Tax (generally 1.5% of Illinois net income on Form IL-1065 when applicable). Single-member disregarded LLCs generally do not file a separate IL-1065—tax treatment follows federal classification. PPRT depends on income and classification; there is no flat “franchise” dollar to invent here.

Should you file with ILSOS or use ZenBusiness?

Choose DIY if you are comfortable completing Form LLC-5.5, naming an Illinois registered agent, and calendaring the $75 annual report. Choose a filing service if you prefer a guided questionnaire and help preparing the Articles. Either way, you remain responsible for the annual report unless a paid compliance product actually files it—and you should verify that it did.

ZenBusiness lists Starter at $0 without a base-plan renewal. Its optional first year of Worry-Free Compliance renews at $199/year; registered-agent service is listed at $199/year (intro pricing may show about $99 for the first year—confirm at checkout). EIN and operating-agreement services are separate Starter purchases. Check the current package terms and checkout selections.

A free introductory service can become a recurring expense. Before paying, review the initial total, renewal amounts, and cancellation terms. Keep a copy of your selections. A reminder is not confirmation that the $75 annual report was filed, and Illinois’s SOS fees remain separate from any ZenBusiness fee.

Can you be your own Illinois registered agent?

Yes. Every Illinois LLC must appoint and maintain a registered agent in Illinois with authority to accept service of process; SOS correspondence goes to the registered office. The registered office must be an Illinois street address suitable for service. An individual Illinois resident or a qualified entity may serve; a member may serve if they meet agent rules. See ILSOS online LLC formation instructions.

Consider whether you can reliably receive legal documents at that Illinois address during business hours. If your work keeps you on job sites or you prefer not to publish a home street address as the agent office, a commercial agent may be more practical. Compare delivery procedures and renewal costs before choosing.

Plan your address use before filing. SOS records are public. Registered-office, principal-place, and mailing addresses are separate fields. Hiring an agent does not automatically privatize every address on the filing. Supply accurate information in every field.

How to file your Illinois LLC: a practical checklist

1. Check the name. Search the ILSOS Business Entity Search and confirm the name is distinguishable and includes Limited Liability Company, L.L.C., or LLC. Optional name reservation is $25. Filing acceptance is not a trademark clearance.
2. Gather addresses and agent details. Have the Illinois registered-office street address, agent name, principal place of business, purpose, and management structure ready. Do not enter someone else’s signature without permission.
3. Decide who manages the company. Choose member-managed or manager-managed as required on Form LLC-5.5. Ask your bank what ownership records it needs.
4. File Articles of Organization. Prefer ILSOS online services: $150 for standard processing (~10 business days) or $250 for 24-hour service per online instructions. Confirm current processor fees at checkout.
5. Confirm acceptance, then calendar the annual report. Save the filed Articles. Put the $75 annual-report window on your calendar for the 60 days before the first anniversary month.

How long does approval take?

ILSOS online instructions list approximately 10 business days for the $150 path and 24-hour service for the $250 total. Mail is slower. A service’s preparation time is separate from Illinois’s review. ZenBusiness lists standard preparation at 7–10 business days before state processing; faster service preparation does not guarantee immediate state approval.

If a lease, financing, or opening date depends on the LLC, leave room for name issues and processing backlog. Completing an online questionnaire is not the moment the company is approved.

Illinois LLC annual report: what happens after formation?

The annual report updates or confirms the state’s business record; it is not an income-tax return and it is not a franchise tax. Under 805 ILCS 180/50-1, deliver the report and $75 fee within the 60 days immediately preceding the first day of the anniversary month.

If the report is not filed and paid before the first day of the anniversary month, the entity becomes delinquent/not in good standing. Penalty under 805 ILCS 180/50-15: $100 if still unpaid before the first day of the second month after the anniversary month, plus $100 for each year or fraction thereof beginning with the second year of delinquency until returned to good standing. See ILSOS LLC annual report instructions.

Example: if the anniversary month is September, the filing window is roughly the 60 days before September 1. Set reminders early, verify the contact email on file, and save the confirmation. If you buy compliance assistance, check that the report was actually submitted.

Starting near year-end? The anniversary month still drives the first annual-report window. Choose the formation date around real operations, then calendar SOS and—separately—any IDOR accounts you need (including possible PPRT if partnership-classified).

After filing: get the business ready to operate

• Document how the LLC works. An operating agreement can set ownership, contributions, decision-making, distributions, and exit arrangements. Illinois’s filing office generally does not require you to file the agreement with the formation paperwork—keep it with your company records. For multiple owners, resolve disagreements before money or contracts are committed.
• Get an EIN when needed. Form the entity first, then use the free IRS application if eligible. An EIN service fee pays someone to assist; it is not an IRS charge. Save the confirmation for banking and tax records.
• Separate business finances. Ask the bank for its document checklist and establish a bookkeeping process. Use the correct legal business name on applications and contracts; keep any trade-name registrations consistent.
• Check taxes and operating permissions. LLC formation does not itself select S-corporation taxation or issue a professional license. The IRS explains LLC tax classifications. Identify the state and local requirements for your actual work before opening.
• Check the current BOI rule. As of this review, FinCEN exempts entities created in the United States from beneficial-ownership reporting. A newly created domestic LLC generally falls within that exemption. Consult FinCEN directly before buying a BOI filing add-on.

For a simple one-owner operation, organize these tasks into a short checklist. Where ownership, investors, or tax elections are complicated, formation paperwork alone will not resolve those decisions.

Match insurance to the work your LLC performs

Entity formation and insurance solve different problems. Ask the insurer to identify the correct business and operations; ask clients or landlords what coverage and certificate of insurance they require. Use the relevant guide to compare coverage:

• Illinois cleaning business insurance
• Illinois food truck insurance
• Illinois HVAC insurance
• Illinois landscaping insurance
• Illinois daycare insurance

Continue with the Illinois business guide for the broader startup process.

Illinois LLC questions before you file

What is the cheapest way to form an Illinois LLC?

Articles of Organization (Form LLC-5.5) cost $150. Filing directly avoids a third-party preparation charge; ZenBusiness Starter also advertises a $0 formation service fee plus the same $150 state fee. Optional 24-hour service totals $250 ($150 + $100 expedite) on ILSOS online instructions. Card processor fees may apply.

Do Illinois LLCs pay a franchise tax?

No. Illinois LLCs are not subject to the corporate franchise tax. Do not budget a franchise-tax line for LLC formation or the SOS annual report. Separately, IDOR Personal Property Replacement Tax (PPRT) may apply to partnership-classified LLCs on Illinois net income—that is an income/replacement tax, not an SOS franchise fee.

When is the Illinois LLC annual report due?

File the annual report and pay $75 within the 60 days immediately preceding the first day of the anniversary month. Missing that window can trigger delinquency and a $100 penalty (plus $100 for each year or fraction thereof beginning with the second year of delinquency) under 805 ILCS 180/50-15.

Does forming an LLC give me an Illinois business license?

No. Formation creates the entity with the Secretary of State. City licenses, sales-tax accounts, professional credentials, and IDOR registrations are separate; check your industry and location before opening.

Can I get an EIN without buying a service?

Yes. The IRS issues EINs free. Form the LLC first, then check eligibility for the IRS online application or use its alternative application instructions.