What Does It Cost to Set Up an LLC in the State of Illinois?

By Stephanie Kurose, J.D.

What Does It Cost to Set Up an LLC in the State of Illinois?

By Stephanie Kurose, J.D.

Because state law governs limited liability companies (LLCs), the amount of money it costs to form an LLC varies by state. In Illinois, there are generally two types of costs associated with setting up an LLC: mandatory and optional.

Illinois state flag swaying in the wind

Which Fees Are Mandatory When Forming an LLC?

Illinois requires a business owner to pay certain fees to form an LLC. These mandatory costs typically include fees associated with filing documents the state requires to legally establish the organization.

Articles of Organization

Articles of Organization legally create an LLC. Without this document, Illinois will not recognize the LLC as a legitimate business. When the state processes and accepts the Articles of Organization, the LLC officially forms. The filing fee for this step is typically between $150 to $200.

Annual Report

Illinois requires every LLC conducting business in the state to file an annual report. Doing so maintains the LLC's good standing with the state. The LLC must submit the report before the first day of its anniversary month. Fees vary, but they tend to be more costly if submitted electronically.

Which Fees Are Optional?

Not all expenses associated with forming an LLC are mandatory. Optional costs can include fees for professional services, name reservation, or outsourcing duties to a private company.

Name Reservation Fees

One of the requirements of forming an LLC is to pick a name not already in use by an existing business. If an owner submits the Articles of Organization with a business name already in existence, Illinois will reject the application.

The name of an LLC must be unique—it cannot be the same or substantially similar to one already in existence. To determine whether your desired name is available, you must contact the Illinois Department of Business Services.

Once you have found an available name, Illinois allows you to reserve it for up to three months. This ensures that no one else can obtain the name in the meantime. As of December 2017, the fee for reserving an LLC name is $25.

Expedited and Electronic Services

Illinois offers expedited service for those in a hurry to form an LLC. For instance, if you want your Articles of Organization processed within 24 hours, the state charges an additional fee on top of the regular filing fee. A request for expedited services must take place in person at either the Springfield office or the Chicago office.

Note that if you file any document electronically, Illinois charges an additional fee because it considers this an expedited service.

Private Service Fees

An owner may wish to outsource all of the duties involved in forming an LLC to a private company. There are many companies that offer to file the necessary documents for you. If you have previously consulted with an attorney about whether to form an LLC, this also requires additional fees.

This portion of the site is for informational purposes only. The content is not legal advice. The statements and opinions are the expression of author, not LegalZoom, and have not been evaluated by LegalZoom for accuracy, completeness, or changes in the law.