Setting up an LLC or limited liability company in Illinois includes both mandatory and optional costs. The mandatory costs are primarily in the form of governmental fees that must be paid to file the required state forms to legally create an LLC. Optional costs generally include fees for professional services, such as for an attorney or accountant, or service fees charged by a private company that assists with filing the state-required LLC forms.
Name Reservation Fee
An Illinois LLC is formed when a document called articles of organization is accepted for filing by the secretary of state's office. A preprinted form of the articles of organization is provided by the secretary of state that specifies the minimum information legally required to form an LLC. Among the information that must be included is a name for the LLC that complies with Illinois LLC law. If the LLC name does not comply, the articles will be rejected for filing. Before preparing the articles, a name check can be done by contacting the Department of Business Services to determine whether the proposed LLC name is acceptable and available. After determining the name is acceptable, it can be reserved for a period of 90 days -- which is optional, but may avoid having the articles rejected. As of December 2010, the fee for reserving a name is $300.
Filing articles of organization with the secretary of state requires submitting the appropriate fee along with the articles. Two different fees apply, depending on whether the LLC is to be a specialized type call a "series LLC." For a basic LLC, which uses Form LLC-5.5 -- the filing fee is $500 as of December 2010. For a series LLC,which uses Form LLC-5.5(S), the filing fee is $750. These fees are mandatory.
Expedited and Online Service Fees
If setting up the LLC is an urgent matter, the secretary of state offers expedited filing services at its Springfield and Chicago offices. For payment of an additional $100, the secretary of state's office will process the articles of organization within 24 hours of receiving the document. All expedited service requests must be made in person. The secretary of state also offers the option of filing the articles of organization electronically using its CyberDriveIllinois website; however, all filings through the website are considered expedited filings and the $100 expedited filing fee must be paid in addition to the $500 or $750 filing fee.
Nongovernmental Service Fees
Private companies frequently advertise LLC filing services, such as preparing and filing the articles of organization. Using the services of such a company will require paying a fee in addition to the state filing fees. Also, if you consult with an attorney or accountant regarding whether an LLC is right for your business, you will incur fees for such professional services. The fees for LLC filing services or for professional advice are not regulated. You should obtain quotes for services from several companies or professionals before choosing any services. Since the Illinois state fees are easily verifiable, you should be able to breakdown any fee quote to understand the cost for the services you are getting.