How to Start an LLC in Illinois: Complete 2026 Guide

Form your Illinois LLC quickly and affordably with our step-by-step guide covering everything from name selection to business banking.

By Edmond Hui · Last updated: October 2026

Filing an LLC in Illinois costs $150 upfront and has an annual report due before 1st of anniversary month ($75). Illinois publishes no standard processing time. See breakdown below.

Illinois publishes no standard LLC turnaround: its fee schedule prices expedited service but attaches no figure to the ordinary $150 filing

The Illinois Secretary of State sells speed instead of promising it: $50 for Expedited all other filings and copies, and $100 for Expedited articles of organization. Treat any specific day count you see quoted for Illinois with suspicion. It didn't come from the state. Plan around the filing itself, and buy an expedite tier if your timing is genuinely fixed.

Source: MyStateLLC 50-state primary-source processing verification, July 2026

Choosing an LLC formation service for Illinois?

We compared Northwest Registered Agent, Bizee, ZenBusiness and LegalZoom, the formation services we partner with, on 3-year cost, BBB rating and Trustpilot score.

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$39 with Northwest, plus your $150 state fee. Northwest's $39 includes a year of registered agent service.

Affiliate disclosure: We may earn a commission at no extra cost to you.

Form your LLC with Northwest ($39 + state fee)Includes a year of registered agent service. After year one, registered agent service is $125/yr. That enrolls you by default in annual report filing at $100 plus state fees, charged automatically to your saved payment method and cancellable any time.

Forming in Illinois? Compare the best LLC services in Illinois.

Prefer to file directly? File yourself at the Secretary of State → ($150 state fee, no service fee)

Not sure which service is right? Compare formation services →

Quick Facts

State filing fee$150
Processing timeNot published by the state
Annual report dueBefore 1st of anniversary month
Annual report fee$75
State income taxYes. Members pay state income tax on pass-through profits. Check the current rate with the state tax agency.

Source: Illinois Secretary of State (verified July 2026)

Step diagram for forming an LLC in Illinois, showing the 7 required steps, $150 state filing fee, $75 annual report.
The 7 steps to form an LLC in Illinois, with the state's own filing fee and annual report cost. Source: Illinois Secretary of State, verified July 2026.

How to Form an LLC: Step-by-Step

  1. 1

    Choose Your Illinois LLC Name

    Select a unique name that includes 'LLC' or 'Limited Liability Company' and isn't already taken in Illinois. Search the Illinois Secretary of State business database to verify availability before proceeding with your filing.

    Pro tip: Reserve your chosen name for 90 days by filing Form LLC-1.20 with a $25 fee if you're not ready to file immediately.
  2. 2

    Appoint a Registered Agent

    Designate a registered agent with an Illinois street address who can accept legal documents during business hours. This can be yourself, another person, or a professional registered agent service.

    Pro tip: A professional registered agent service puts its address, not yours, on the registered agent line of the public filing, and accepts legal papers during business hours.
  3. 3

    File Articles of Organization

    Submit Form LLC-5.5 to the Illinois Secretary of State with the $150 filing fee. File online at ilsos.gov for fastest processing.

    What You File in Illinois

    In Illinois, the formation document is the Articles of Organization (Form LLC-5.5), filed with the Illinois Secretary of State, Department of Business Services, Limited Liability Division. The state filing fee is $150. Illinois lets you fill in and file the Articles of Organization online. The form itself requires the LLC's name, the registered agent's name, the registered office address, the principal office address, the organizer's name and an effective date. Every line of the Articles of Organization, field by field →

    Processing Times

    • Online: Not published, Illinois Secretary of State states no standard turnaround for online filings
    • Mail: Not published, Illinois Secretary of State states no standard turnaround for mailed filings, and every state that comments says mail is slower than online
    • Expedited: $50 for Expedited all other filings and copies, and $100 for Expedited articles of organization
    Pro tip: Filing online typically processes faster than mail submissions and provides immediate confirmation of receipt.
  4. 4

    Create an Operating Agreement

    Draft an operating agreement outlining ownership percentages, member responsibilities, and business procedures. This page has not confirmed whether Illinois law requires an LLC to have an operating agreement. A written agreement signed by every member is worth having either way: it records who owns what share, who makes decisions and how profits are divided.

    Pro tip: Even single-member LLCs benefit from an operating agreement to establish clear business practices and maintain corporate formalities.
  5. 5

    Obtain an EIN from the IRS

    Apply for an Employer Identification Number (EIN) directly through the IRS website at no cost. Most banks ask for this federal tax ID to open a business bank account, and the IRS requires one if the LLC hires employees, owes certain employment or excise taxes, or is taxed as a partnership or corporation.

    Pro tip: Apply for your EIN immediately after your LLC is approved - you'll need it to open a business bank account.
  6. 6

    Open a Business Bank Account

    Open a dedicated business bank account using your EIN and LLC formation documents. Keep business and personal finances separate to maintain your limited liability protection and simplify tax filing.

    Pro tip: Shop around for business banking options - many banks offer incentives for new LLCs, including waived fees for the first year.
  7. 7

    Obtain Required Business Licenses

    Research and obtain any necessary business licenses or permits for your industry and location. Check with Illinois Department of Revenue, local municipalities, and relevant professional licensing boards for requirements specific to your business type.

Watch: How to Start an LLC in Illinois (2026): Step-by-Step Guide

This guide is general information, not legal or tax advice, and reading it does not create an attorney-client relationship. It reports what each Secretary of State publishes for forming an LLC, with the sources this page cites. It cannot tell you what your own filing needs: fees and forms change between our reviews, several occupations cannot use an ordinary LLC at all and must use a professional entity, and your city or county may require a registration of its own. Confirm the current fee and form with the filing office named on this page before you send anything.

Frequently Asked Questions

Sources

4 documents

Each entry below is a document recorded in our verified Illinois 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.

Next step: File your annual report on time
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More for Illinois LLCs

Ready to Form Your Illinois LLC?

$39 with Northwest, plus your $150 state fee. Northwest's $39 includes a year of registered agent service.

Affiliate disclosure: We may earn a commission at no extra cost to you.

Form your LLC with Northwest ($39 + state fee)Includes a year of registered agent service. After year one, registered agent service is $125/yr. That enrolls you by default in annual report filing at $100 plus state fees, charged automatically to your saved payment method and cancellable any time.

Prefer to file directly? File yourself at the Secretary of State → ($150 state fee, no service fee)

Not sure which service is right? Compare formation services →

Edmond Hui

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.

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