Should you form your LLC in Illinois? We’ve collected the relevant information that will help you make this decision.

Pros

  • Largest inland port in Western Hemisphere
  • Inexpensive occupancy costs
  • Qualified workforce
  • Home to one of the top 20 metro areas in US

Cons

  • Taxed as a partnership
  • Tax rate of 7.75%
  • Competitive market

Cost of doing business

  • $500 filing fee / $350 annual statement

Privacy

  • Owners disclosed in original filing

Forming an LLC in Illinois

The name
In order to communicate to the public that your new business is an LLC, its official name will need to end with one of the following signifiers (or abbreviation of): “Limited liability company”, “LLC”, or “L.L.C.” In addition, it is required that the name of your business is not intentionally misleading to consumers, for any reason. Your company’s new name must also be completely unique, and not deceptively similar to any other organizations name or trademarks. There are also restrictions on the use of certain terms common to the financial industry. Do a FREE name search now.

Ownership
The owners of an LLC are called “members.” The following information must be required regarding your LLCs members:

  • Required number of members
    Illinois LLCs must have at least one member or manager listed in their incorporation documents.
  • Age restrictions
    LLC members in Illinois may be of any age.
  • Residence restrictions
    There are no residence restrictions imposed on LLC members in Illinois.
  • What information needs to be included in the Articles of Organization?
    LLC Members in Illinois are required to list their name and address in their Articles of Organization.

Requirements for the Articles of Organization

The Articles of Organization is a document that must be filed during the LLC formation process in every state. Here is the information that must be included in this document when filing in Illinois:

Registered agent information
All Illinois LLCs must have a registered agent on file, and submit their name and address (which cannot be a PO box). This agent will be required to be accessible during standard business hours, and act as the state’s point of contact with the company. Learn more about registered agents.

Additional Illinois filing requirements

Many states have steps in the LLC formation process that are unique to that state. These can also vary at the municipality or county level as well. Here are the steps required throughout all of Illinois:

Initial report deadlines
New LLCs in Illinois are required to file an initial report within six months of incorporation.

If your business is a professional practice
Professional service companies are not permitted to form under the professional limited liability company (PLLC) structure.

Illinois LLC taxation and fee requirements

There are several tax and fee requirements that must be addressed by LLCs in Illinois. They are as follows:

Taxation
All states have complex taxation requirements. For more information regarding taxes in Illinois it is advised that you visit the state’s official business related website. 

Annual report requirements
LLCs in Illinois are required to file an annual report every year within 60 days before the company’s anniversary month. The cost of this filing is currently $250. Learn more about annual reports.

Tax identification numbers
Illinois requires an EIN (employee identification number) for all LLCs that will have employees, and most banks will require one to open accounts. Illinois also requires LLCs to obtain state tax ID numbers. Learn more about EINs.

Business license requirements

The business licenses and permits required in Illinois vary wildly depending on the county or municipality in which your new LLC is located. If you would like to see more in-depth information on licenses and permits, please feel free to visit the content in our learning library that covers these topics. Learn more about business licenses and permits.

Need an Illinois corporation instead? Click here.