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How to Start an LLC in Illinois

Fee, timeline, and tax basics for a Illinois LLC.

How Is an LLC Taxed in Illinois?

A Illinois LLC is not taxed differently than a sole proprietorship by default; profit simply passes through to your personal return. Any savings come later from an S-corp election once your Illinois LLC is consistently profitable enough to justify the extra payroll work.

Illinois Filing Fee and Timeline

Illinois charges $150 to file the Articles of Organization, on the pricier side compared with most other states. Processing time depends on how Illinois is running that week and whether you file online or mail it in; check the Illinois Secretary of State site for the current estimate before you plan around it. On the ongoing side, Illinois charges a moderate recurring fee that is easy to plan around ($75).

Steps to Start an LLC in Illinois

  1. Check name availability with Illinois's business filing office before you file anything.
  2. Designate a registered agent with a Illinois street address, not a P.O. box.
  3. File the Articles of Organization and pay the $150 fee to Illinois.
  4. Put an operating agreement in writing, even for a single-member Illinois LLC.
  5. Request a free EIN online from the IRS once your Illinois LLC is on file.
  6. Open a business bank account so your Illinois LLC's finances stay separate from your own.

Illinois LLC Results

Between the $150 filing fee and an optional registered-agent service, most Illinois LLC owners have a clear first-year number well before they file anything. Use the LLC cost calculator to see your projected first-year LLC spend for Illinois, then check the sole proprietor comparison to compare the two structures side by side.

Illinois LLC Details

Filing documentArticles of Organization
State filing fee$150
Recurring report fee$75

Illinois publishes these figures directly; they are current for 2026 but worth double checking before you file, since fees can change.

Illinois LLC FAQs

How long does it take Illinois to process an LLC filing?

Processing time depends on Illinois's current workload and whether you file online or by mail; the Illinois Secretary of State's site lists current turnaround times, since they change throughout the year.

What happens if I never file an operating agreement in Illinois?

Illinois does not require you to file an operating agreement with the state, but skipping one leaves your LLC governed by Illinois's default LLC statute, which may not match how you actually want to run the business.

How much does it cost to start an LLC in Illinois?

Illinois charges $150 to file the Articles of Organization, which is on the pricier side compared with most other states. After that, Illinois charges a moderate recurring fee that is easy to plan around; use the LLC cost calculator for your full first-year number.

Do I need a lawyer to start an LLC in Illinois?

No. Most people file the Articles of Organization themselves directly with Illinois's Secretary of State. A lawyer can help with a custom operating agreement for a Illinois LLC or a more complex ownership setup, but Illinois does not require one to form the LLC itself.

Does Illinois require a separate annual or biennial report fee?

Illinois charges a moderate recurring fee that is easy to plan around, currently $75 on the recurring schedule the state sets, on top of the original filing fee.

Beyond Illinois: the 7-step national walkthrough that applies no matter which state you file in. Illinois's fees are current for 2026; always verify with the Illinois Secretary of State before you file.
Priya Raman
About the author
Priya Raman

Contributing Writer, Policy & Regulation, Encore Editorial

Priya covers tax, regulation, and compliance: the rules that decide what you can and cannot do, usually filed in an obscure subsection that most people skip. She reads federal register notices in her spare time and is at peace with that being unusual.