How to Start an LLC in Illinois (2026)
Forming an LLC in Illinois costs $150 in state filing fees, and online filings are typically processed in 5 to 10 business days. This guide walks you through every step from choosing a name to opening your business bank account.
In This Article
What You'll Learn in This Guide
This guide walks you through every step to legally form a Limited Liability Company (LLC) in Illinois — from picking a name to staying compliant year after year. We've kept it practical, current, and free of unnecessary fluff.
Note
Illinois LLC formation costs $150 in state fees. Most founders complete the process in 5-10 business days, either DIY or through a formation service starting at $0.
Illinois LLC: Quick Facts
Last Verified: Feb 2026- Filing Fee (Online)
- $150
- Processing Time
- 5-10 business days
- Expedited Available
- No
- Annual Report
- $75*
- State Income Tax
- Yes
- Sales Tax Rate
- 6.25%
- Filed With
- Illinois Secretary of State
- Last Verified
- February 21, 2026
* Annual Report: $75, due Before the first day of the anniversary month of formation.
What You Need to Know About Forming an LLC in Illinois
An Illinois LLC creates a legal wall between your personal assets and your business obligations. If your LLC is sued or takes on debt, your personal bank accounts, home, and other property are generally protected. That separation is the core reason most founders choose this structure.
Illinois charges a $150 filing fee for articles of organization, which is higher than many states. You will also owe a $75 annual report fee every year on your LLC's anniversary month. There is no franchise tax and no general state business license requirement, which keeps ongoing costs relatively straightforward.
The full process involves picking a compliant name, designating a registered agent with an Illinois street address, filing your formation paperwork with the Illinois Secretary of State, getting an EIN from the IRS, drafting an operating agreement, and opening a business bank account. Most founders can complete everything within a couple of weeks if they file online.
Choose a Name for Your Illinois LLC
Your LLC name must meet specific Illinois naming rules and be distinguishable from every other entity on file with the Secretary of State.
Illinois requires your LLC name to be distinguishable from any existing business entity registered with the Secretary of State. You can run a free search on the state's business entity database to check availability before you file.
Search available names →Illinois LLC Naming Rules
Optional Name Reservation
- Reserve your name for 90 days by filing an application with the Secretary of State
- Reservation fee is $25
- Useful if you need time to prepare your formation documents or secure funding
State Specific
Illinois allows you to reserve a name for 90 days for a $25 fee, which is useful if you are not ready to file your articles of organization right away.
Pro Tip
Search the Illinois business name database before you commit to a name. It is free to search and takes less than a minute.
Choose a Registered Agent in Illinois
Every Illinois LLC must designate a registered agent with a physical street address in the state who can accept legal documents on your behalf.
A registered agent receives legal notices, lawsuit papers, and official state correspondence for your LLC. Illinois requires your registered agent to be either an individual who resides in Illinois or a business entity authorized to operate in the state. The agent must have a physical street address in Illinois. P.O. Boxes do not qualify.
Your Three Options
- Be your own registered agent (free, but your address goes on the public record and you must be available during business hours)
- Ask a trusted person in Illinois to serve (also free, but they take on a real responsibility)
- Hire a professional registered agent service (typically $50 to $300 per year, keeps your address private and ensures reliable handling of legal documents)
Pro Tip
If you use your own address, it becomes part of the public record. A professional registered agent service keeps your personal address private.
File Your Articles of Organization with Illinois
This is the official formation step. You will submit Form LLC-5.5 to the Illinois Secretary of State along with the $150 filing fee.
To officially create your Illinois LLC, you need to file Form LLC-5.5 (Articles of Organization) with the Illinois Secretary of State. The form asks for your LLC name, registered agent name and address, principal office address, the purpose of your LLC, and whether it will be member-managed or manager-managed. You can file online through the Secretary of State's website or submit a paper form by mail.
File Online
File by Mail
$150
State Filing Fee
one-time
5-10 days
Online Processing
business days
$100 extra
Expedited Option
24-hour processing
State Specific
Online filings are processed in 5 to 10 business days. Expedited 24-hour processing is available for an additional $100 fee.
Recommended: ZenBusiness
Beginner-friendly LLC formation with transparent pricing and a free starter option. From $0 + state fees.
Get an EIN from the IRS
An EIN is a federal tax ID number for your LLC. You need it to open a bank account, hire employees, and file taxes.
Apply for an EIN directly on the IRS website at no cost. The online application takes about five minutes, and you will receive your EIN immediately upon completion. You need this number before you can open a business bank account or file taxes for your Illinois LLC.
Apply for your EIN on IRS.gov →Create an Operating Agreement for Your Illinois LLC
An operating agreement defines how your LLC is owned, managed, and run. Illinois does not require one by law, but every LLC should have one.
An operating agreement is an internal document that spells out ownership percentages, how profits and losses are divided, who makes decisions, and what happens if a member leaves or the LLC dissolves. Even single-member LLCs benefit from having one because it reinforces the legal separation between you and your business. Banks may ask to see it when you open your account.
Key Sections to Include
State Specific
Illinois does not legally require an operating agreement, but without one, your LLC defaults to the rules in the Illinois Limited Liability Company Act, which may not match your intentions.
Open a Business Bank Account for Your LLC
A dedicated business bank account keeps your personal and LLC finances separate, which is essential for maintaining your liability protection.
Mixing personal and business funds is one of the fastest ways to lose the liability protection your LLC provides. If a court finds that you treated your LLC's money as your own, it can "pierce the veil" and hold you personally liable. Opening a separate business checking account from day one avoids that risk and makes bookkeeping far simpler when tax season arrives.
What to Bring to the Bank
- Filed and approved articles of organization from the Illinois Secretary of State
- Your EIN confirmation letter from the IRS
- Your operating agreement
- A valid photo ID for all members or managers who will be signers on the account
- An initial deposit (amount varies by bank)
Pro Tip
Some banks offer free business checking for small LLCs. Compare a few options before committing.
Top 3 LLC Formation Services
We've independently reviewed the top LLC formation services in Illinois. Here's how they compare.
| Feature | ZenBusiness Best Overall Value | Northwest Registered Agent Best Privacy | Tailor Brands Best for Branding |
|---|---|---|---|
| Starting Price | $0 + state fees | $39 + state fees | $0 + state fees |
| Formation Speed | 1-10 business days | Same-day filing | 2-14 business days |
| Support | Phone, Chat, Email | Lifetime Corporate Guides | Phone, Chat, Email |
| States Covered | 50 states | 50 states | 50 states |
| In Business Since | 2015 | 1998 | 2014 |
| Get Started → | Get Started → | Get Started → |
Frequently Asked Questions
What to Do Next
Once your Illinois LLC is approved, take these steps to set your business up for success.
Get an EIN
Apply for free in about 10 minutes at IRS.gov — required before opening a bank account or hiring anyone.
Open a Business Bank Account
Keep personal and business finances separate from day one. Bring your EIN, Articles of Organization, and a government ID.
Create an Operating Agreement
Even if Illinois does not require one, an operating agreement protects your liability shield and defines how the LLC is managed.
File Your Annual Report
Set a calendar reminder now. Missing your Annual Report deadline can result in late fees or administrative dissolution.
Ready To File?
Start your Illinois LLC with ZenBusiness — guided filing and compliance support included.
About the Author
Legal & Compliance Analyst
Daniel grew up in the shadow of Silicon Valley but chose the legal route over engineering, working as a paralegal for a corporate law firm specializing in mergers and acquisitions. He realized that early-stage founders were constantly making catastrophic legal mistakes because they couldn't afford a $500/hour attorney, prompting his move to B2B media.
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