Illinois LLC vs West Virginia LLC (2026)
Written for owners based in Illinois.
Verdict: for most owners, form where the business is based
West Virginia charges $100 to form and $25 a year, against $150 and $75 in Illinois, on a single statewide June 30 deadline rather than a formation anniversary. That $25 is not the only mandatory cost: before any business activity the Tax Division requires a $30 Business Registration Certificate, and a separate $30 certificate for each fixed location in the state. A $50 biennial option exists from July 1, 2026 but needs five consecutive years of timely annual reports first. An owner based in Illinois adds a $150 foreign registration to all of it.
Based in West Virginia? Read West Virginia LLC vs Illinois LLC →
Compare Illinois LLC vs West Virginia LLC on filing fees, taxes, privacy laws, and annual costs. Find out which state is actually better for your business.
By Edmond Hui · Last updated: September 23, 2026
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| Factor | Illinois | West Virginia |
|---|---|---|
| Filing Fee | $150 | $100 |
| Processing Time | Not published by the state | 5 to 10 business days (paper) |
| Annual Report Fee | $75 | $25 |
| Annual Report Due | Before 1st of anniversary month | June 30 |
| State Income Tax | Yes | Yes |
| Anonymous LLC | No | No |
| Publication Requirement | No | No |
| Foreign LLC Cost (if forming out-of-state) | N/A, you're in your home state | $150 + registered agent ~$150/yr |
Full fee breakdown for either state: Illinois LLC cost and West Virginia LLC cost. Owner privacy options for either state: Illinois anonymous LLC guide and West Virginia anonymous LLC guide.
Business Climate: Illinois vs West Virginia
| Factor | Illinois | West Virginia |
|---|---|---|
| 5-year business survival rate | 55.6% (#3 of 51) | 53.6% (#14 of 51) |
| Business application growth (2026 YTD (Jan to Jul) vs 2025 YTD (same months)) | +7.7% YoY (#7 of 51 by volume) | +19% YoY (#43 of 51 by volume) |
Sources: U.S. Bureau of Labor Statistics, Business Employment Dynamics · U.S. Census Bureau, Business Formation Statistics (BFS)
Compare LLC Costs: Illinois vs West Virginia
Illinois
West Virginia
A figure shown as "from" is the least the state can charge, not a price. Tennessee's report is $300 for up to six members and $50 for each member above six, its franchise tax is the greater of $100 or 0.25% of Tennessee net worth, Wyoming's report is the greater of $60 or $.0002 per dollar of in-state assets, Kentucky's entity tax is $175 up to $3 million of gross receipts and graduated above it, and New York's annual filing fee is graduated on New York source gross income. A total that contains one of those is shown as "from" for the same reason. Costs include every mandatory state charge: the filing fee, the report fee (annualised where a state files biennially), any state entity-level tax shown in its own row above, a one-time publication cost where the state publishes a rate for it, and any one-time registration charge a state requires before the LLC may trade. Two exclusions follow from that wording. Arizona and Nebraska require publication and publish no rate, so no newspaper cost is carried for either and their totals are not the whole cost. Alaska's $50 annual state business licence is a separate charge from the Secretary of State fees and is not carried here either. Annualising makes the 1, 3 and 5 year rows a cost of ownership rather than a payment schedule: a biennial state charges its whole report fee in the years it falls due and nothing in between. Entity-level taxes that only apply after a corporate election, or above an owner or income threshold, are excluded and flagged on the state's own cost page. New York's publication cost is carried at a $250 floor, roughly $200 of newspaper cost in a low-cost county plus the $50 Certificate of Publication fee. No county-clerk-designated New York City newspaper publishes a rate card, so the four-figure NYC estimates in wide circulation cannot be traced to a primary source and are not asserted here; budget for materially more than the floor if you file in a NYC county. Every fee was verified against the state's own fee schedule, statute, or revenue authority on 29 July 2026. Excludes registered agent and legal fees. For informational purposes only, not legal or tax advice.
Filing Fees & Formation Costs
Illinois charges $150 to form an LLC, while West Virginia charges $100. West Virginia is $50 cheaper upfront. The cost that usually gets overlooked: if you form in West Virginia but operate in Illinois, you must also register as a foreign LLC in Illinois (a $150 filing) and maintain a registered agent in West Virginia (typically around $150 per year). That puts the realistic first-year cost of the West Virginia route at roughly $400, versus $150 for simply forming in Illinois. Only one side of this comparison is knowable: West Virginia publishes a standard turnaround (5 to 10 business days, paper), while Illinois publishes no standard processing time, so the two can't be ranked against each other on speed.
Taxes: Illinois vs West Virginia
Both Illinois and West Virginia levy a personal income tax on pass-through business income, and your LLC's profits will be taxed where you live and operate. Forming in West Virginia doesn't change what an Illinois-based owner pays. Illinois levies a flat 4.95% personal income tax. Neither state imposes a separate franchise or privilege tax on LLCs beyond standard filing fees.
Privacy & Asset Protection
Neither Illinois nor West Virginia offers anonymous LLC formation: both states require owner or manager information on public filings. West Virginia's annual report includes the LLC's members and managers. Business owners who prioritize privacy typically form a holding company in a state like Wyoming or New Mexico instead. Both states provide charging-order protection for LLC members, and for most small businesses the practical difference in asset protection between the two is minimal.
Annual Maintenance Costs
Illinois LLCs file an annual report ($75, due in the anniversary month), and West Virginia LLCs file an annual report ($25, due June 30). If you form in West Virginia while operating in Illinois, you maintain filings in both states, West Virginia's report plus Illinois's equivalent for your foreign registration, and pay a West Virginia registered agent roughly $150 per year. Counting report fees, the agent and any entity-level tax, that brings the West Virginia route to roughly $250 a year, versus about $75 to keep a domestic Illinois LLC in good standing.
When West Virginia Actually Makes Sense
Forming in West Virginia makes sense in a few specific situations: your business genuinely operates in West Virginia, with a real office, employees, or property there, or you're relocating to West Virginia in the near future. For a typical small business based in Illinois, none of these usually apply. Registering a West Virginia LLC to do business back home means $150 in Illinois foreign-registration fees, on top of West Virginia's $100 formation fee, while Illinois's own annual report runs $75 a year and is due in the anniversary month. When in doubt, form where you actually do business.
Frequently Asked Questions
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Sources
Each entry below is a document recorded in our verified sources, and each entry says what the document is. Some statutory text is read from an accurate mirror rather than from the state's own host, and those say so.
- ilsos.gov/departments/business-services/limited-liability-companies.htmlIllinois Secretary of State: business entity filings
- ilga.gov/legislation/ILCS/details?ActName=Limited+Liability+Company+Act.&ActID=2290&ChapterID=65&ChapAct=805+ILCS+180%2F&SeqStart=14450000&SeqEnd=15800000Illinois LLC filing fees
- sos.wv.gov/businessWest Virginia Secretary of State: business entity filings
- sos.wv.gov/media/335/download?inline=West Virginia LLC filing fees
Edmond Hui · Founder, MyStateLLC
Edmond Hui is a software engineer and serial entrepreneur based in New York who has founded multiple online businesses across e-commerce, media, and information publishing. Before transitioning into tech, he spent years as a commercial real estate professional closing deals totaling over 100,000 square feet, giving him firsthand experience with business formation and entity structuring. He built MyStateLLC to provide the free, state-specific LLC guidance he wished existed when forming his own companies.