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
- Overview
- Quick Facts
- Introduction
- Choose a Name for Your Illinois LLC
- Choose a Registered Agent in Illinois
- File Your Articles of Organization with Illinois
- Get an EIN from the IRS
- Create an Operating Agreement for Your Illinois LLC
- Open a Business Bank Account for Your LLC
- Federal BOI Reporting
- Top 3 LLC Services
- FAQ
- Next Steps
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: Oct 2026- Filing Fee (Online)
- $150
- Processing Time
- 5-10 business days
- Expedited Available
- Yes (same day or 24 hours, in…*
- Annual Report
- $75**
- State Income Tax
- Yes
- Sales Tax Rate
- 6.25%
- Filed With
- Illinois Secretary of State
- Last Verified
- October 15, 2026
* Expedited Available: Yes (same day or 24 hours, in person in Springfield or Chicago / $100)
** 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 keeps your own money and property apart from your business debts. If someone sues your LLC or it owes money, your bank accounts, home, and other property are generally protected. Most founders pick an LLC for this protection.
Illinois charges $150 to file your articles of organization, the form that creates your LLC. You also pay a $75 annual report fee each year, starting the year after you form. It is due before the first day of the month that matches your formation date. Illinois has no franchise tax and no general state business license requirement, so your yearly costs stay simple.
To form your LLC, you pick a name that follows Illinois rules. You also choose a registered agent with an Illinois street address. A registered agent is the person or company that receives legal mail for your business. Next you file with the Illinois Secretary of State and get an EIN from the IRS. An EIN is the federal tax number you need to open a business bank account. Then you write an operating agreement and open the account. Most founders finish within a couple of weeks if they file online.
Choose a Name for Your Illinois LLC
Your LLC name must follow Illinois rules and differ from all other names on file with the Secretary of State.
Your LLC name must be distinguishable from other names on the records of the Illinois Secretary of State. That means it must look different enough from other LLC names, reserved names, and some corporate names. You can search the Illinois Secretary of State's business name database for free 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
- The reservation fee is $25
- Useful if you need time to prepare your formation forms or raise money
State Specific
Adding "limited", "liability", or "company", or an abbreviation of one of them, does not make a name different. Changing "the", "and", a contraction, a verb tense, or a plural does not either.
Pro Tip
Search the Illinois business name database before you settle on a name. The search is free and takes less than a minute.
Choose a Registered Agent in Illinois
Every Illinois LLC needs a registered agent with an Illinois street address at all times.
A registered agent is the person or company that gets legal notices, lawsuit papers, and state mail for your LLC. The agent must be an Illinois resident or a company allowed to do business in Illinois. The agent needs a street address in Illinois. P.O. boxes do not qualify.
Your Three Options
- Be your own registered agent. It is 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. It is also free, but they take on a real responsibility.
- Hire a professional registered agent service. It typically costs $50 to $300 a year, keeps your address private, and handles legal papers for you.
Pro Tip
If you use your own address, it becomes public record. A professional registered agent service lets you keep your home address private.
File Your Articles of Organization with Illinois
You create your LLC by filing Form LLC-5.5 with the Illinois Secretary of State and paying the $150 filing fee.
To create your LLC, file Form LLC-5.5, the Articles of Organization, with the Illinois Secretary of State. The form asks for your LLC name, your registered agent's name and address, and your main office address. It also asks for the purpose of your LLC and whether the owners or chosen managers will run it. You can file online or send 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 typically take 5 to 10 business days. Rush service costs $100 extra and comes back the same day or within 24 hours. You generally ask for it in person at the Secretary of State's Springfield office.
Recommended: Northwest Registered Agent
$39 + state fee. Includes registered agent, business address, domain, website, email, and phone. No upsells.
Get an EIN from the IRS
An EIN is the federal tax number for your LLC. You need it to open a bank account, hire workers, and file taxes.
Apply for an EIN on the IRS website. It is free. If the IRS approves your application, it gives you the EIN right away. You must finish in one sitting, because the session times out after 15 minutes without activity. You need this number to 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 sets out how your LLC is owned and run. Illinois law does not require one, but every LLC should have one.
An operating agreement is a written agreement among the owners of your LLC. It states who owns what share, how profits and losses are split, who makes decisions, and what happens if an owner leaves or the LLC closes. A single-owner LLC benefits too, because the agreement helps show that you and your business are separate. Banks may ask to see it when you open an account.
Key Sections to Include
State Specific
Illinois law does not require an operating agreement. Without one, your LLC follows the default rules in the Illinois Limited Liability Company Act, which may not match what you want.
Open a Business Bank Account for Your LLC
A business bank account keeps your money apart from your LLC's money. That helps you keep your liability protection.
Mixing personal and business money is one of the fastest ways to lose the protection your LLC gives you. If a court finds that you used LLC money as your own, it can "pierce the veil" and make you personally liable. That phrase means the court ignores the LLC's separate status. A separate business checking account from day one avoids that risk and makes bookkeeping much easier at tax time.
What to Bring to the Bank
- Your 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 every owner or manager who will sign on the account
- A first deposit (the amount depends on the bank)
Pro Tip
Some banks offer free business checking for small LLCs. Compare a few before you pick one.
Federal BOI Reporting
No. FinCEN exempted every company formed in the United States from beneficial ownership reporting in an interim final rule published 26 March 2025 and applied from 21 March 2025, then made that exemption permanent in a final rule published 11 August 2026 and effective 14 August 2026. Only entities formed under foreign law and registered to do business in a US state still report.
Top 3 LLC Formation Services
We've independently reviewed the top LLC formation services in Illinois. Here's how they compare.
| Feature | Northwest Registered Agent Best Overall | ZenBusiness Best for LLC Formation | Tailor Brands Best for Branding |
|---|---|---|---|
| Starting Price | $39 + state fees | $0 + state fees | $0 + state fees |
| Formation Speed | Same-day only on the $199 package | 7-10 days, 1 day on Pro | 1-14 business days |
| Support | Lifetime Corporate Guides | Phone, chat, Velo AI 24/7 | Phone, Chat, Email |
| States Covered | 50 states | 50 states | 50 states |
| In Business Since | 1998 | 2015 | 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.
Paying contractors
Illinois is not in the IRS forwarding program, so the federal $2,000 threshold does not settle what Illinois wants. Check the state directly.
Ready To File?
Start your Illinois LLC with Northwest Registered Agent. $39 + state fee includes registered agent, business address, domain, and more.
About the Author
Editor, StartupOwl
Eliot leads StartupOwl's state data research. He maintains the site's fifty state records of LLC filing fees, annual costs, processing times, and small business grant programs, checking each figure against the state office that publishes it and logging the date it was verified. Based in New Jersey, he has spent his working life in and around small businesses, and he writes for the founder who wants the real number rather than the advertised one. Every figure under his byline traces to a named source, and when a state proves a number wrong, the correction is published, not buried.
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