How to Start an LLC in Illinois (Step-by-Step Guide)

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by LLC.org Team
Last updated: February 18th, 2026
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If you’ve decided to start a business in the state of Illinois, there are several tasks you’ll need to handle in order to start. The first is deciding on a type of business entity to form. Limited Liability Companies, or LLCs, are a popular choice, as they provide some personal liability protection for the owner(s) of the business.

In Illinois, LLC formation is handled by the Illinois Secretary of State – Department of Business Services. This department will process your application and Articles of Organization when you sign up for your new LLC. The process is relatively straightforward, but for new business owners, it can feel intimidating.

Fortunately, you’ve found the right guide to help you. The article below will help you navigate the process of starting an LLC in Illinois from start to finish. Let’s get started!

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Forming an LLC in Illinois requires filing Articles of Organization with the Illinois Secretary of State and paying a $150 filing fee. Processing takes about 7-10 business days for standard filings.

Follow these steps to start your Illinois LLC in 2026.

How to Start an LLC in Illinois (6 Steps)

Step 1: Name Your Illinois LLC

Your LLC name must be distinguishable from other entities registered in Illinois. The name must include “Limited Liability Company,” “LLC,” or “L.L.C.”

Search the Illinois Secretary of State business search to check availability. You can reserve a name for 90 days for $25.

Step 2: Choose a Registered Agent

Illinois requires a registered agent with a physical Illinois address, available during business hours. Our recommendation: Northwest Registered Agent ($39/year).

Step 3: File Articles of Organization

File Form LLC-5.5 online through the Illinois Secretary of State’s website or by mail.

  • Filing fee: $150
  • Processing time: 7-10 business days (online), 2-4 weeks (mail)
  • Expedited: 24-hour processing for $100 additional

Step 4: Create an Operating Agreement

Illinois doesn’t legally require an operating agreement, but every LLC should have one. It defines ownership, management, and profit distribution — and banks require one to open a business account.

Step 5: Get an EIN

Apply for a free EIN from the IRS — takes 15 minutes online.

Step 6: File an Annual Report

Illinois requires an annual report filed with the Secretary of State before your LLC’s anniversary date. The fee is $75/year.

Illinois LLC Costs

Cost Amount Frequency
Articles of Organization $150 One-time
Annual Report $75 Annual
Registered agent service $39-$299 Annual
EIN $0 One-time

Total first-year cost: $150-$449. Ongoing annual cost: $75-$374. See our LLC costs by state guide.

Illinois LLC Taxes

  • State income tax: 4.95% flat rate
  • Personal property replacement tax: 1.5% on LLC income
  • Sales tax: 6.25% state rate, plus local taxes up to 11.5% total in some areas
  • Federal taxes: Standard pass-through taxation

Frequently Asked Questions

How long does it take to form an LLC in Illinois?

Online filing takes 7-10 business days. Expedited 24-hour processing costs an additional $100.

Does Illinois have a franchise tax?

Illinois eliminated its franchise tax effective January 1, 2024. LLCs no longer owe this fee. You still need to file the $75 annual report.

Can I be my own registered agent in Illinois?

Yes, as long as you have a physical Illinois address (not a PO box) and are available during normal business hours. Many owners prefer using a registered agent service for convenience and privacy.

Start an LLC in Another State

Click your state below for a step-by-step formation guide with filing fees, requirements, and timelines.

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