🌽 How to Start an LLC in Illinois: 2025 Step-by-Step Guide
Step-by-step guide on how to start an LLC in Illinois in 2025. Learn state fees, EIN registration, operating agreements, and more.
🤔 Why Form an LLC in Illinois?
Forming an LLC in Illinois gives you limited liability protection, pass-through taxation, and business credibility—without the formalities of a corporation. Whether you’re launching a business in Chicago or Springfield, this guide walks you through how to form an LLC in Illinois easily and legally.
| Benefit | Description |
|---|---|
| 🛡️ Liability Protection | Shields personal assets from business debts |
| 💵 Pass-Through Taxation | Avoids double taxation on business income |
| 🧠 Professional Credibility | LLCs appear more legitimate to clients and partners |
| 🧾 Simple Tax Compliance | No corporate tax unless you choose it |
| 🧩 Flexible Ownership | Single or multi-member, member- or manager-managed options |
🧭 7 Steps to Form an LLC in Illinois
1. 🏷️ Name Your Illinois LLC
Your LLC name must:
Be unique and distinguishable in the state of Illinois
Include “Limited Liability Company,” “L.L.C.,” or “LLC”
Avoid prohibited or misleading terms (like “FBI” or “Bank”)
🔎 Check name availability via the Illinois Corporation/LLC Name Search.
2. 🧑💼 Appoint a Registered Agent in Illinois
A registered agent is a person or service that receives legal documents for your LLC.
Requirements:
Must be a resident or entity with a physical address in Illinois
Must be available during normal business hours
✅ You can hire a professional registered agent or act as your own.
3. 📝 File the Articles of Organization
To officially create your LLC, you must file Articles of Organization (Form LLC-5.5) with the Illinois Secretary of State.
Filing Fee: $150
Online or by Mail
Processing Time: 3–10 business days
🔗 File online at the ILSOS LLC Formation Portal.
4. 📃 Create an Illinois LLC Operating Agreement
Although not required by Illinois law, an operating agreement is highly recommended.
It defines:
Ownership structure
Member responsibilities
Profit and loss distribution
Procedures for changes or dissolution
💼 Especially useful for multi-member LLCs.
5. 🆔 Apply for an EIN (Employer Identification Number)
An Employer Identification Number (EIN) is essential for:
Opening a business bank account
Filing state and federal taxes
Hiring employees
🆓 Apply online at IRS.gov. It’s free and instant.
6. 📜 Obtain Required Business Licenses
Illinois doesn’t have a state-wide business license, but you may need:
Local business licenses from your city/county
Professional licenses based on your industry
Sales tax license from the Illinois Department of Revenue
7. 💼 Open a Business Bank Account
Keep personal and business finances separate. You’ll need:
EIN
Certificate of Formation
Operating Agreement
8. 📆 File Annual Reports
Each year, your Illinois LLC must file an Annual Report (Form LLC-50.1).
Fee: $75
Due: Before the first day of your anniversary month
Late Fee: $100
File: Online at ILSOS.gov
📌 Failure to file can lead to administrative dissolution.
🔍 People Also Ask
How much does it cost to start an LLC in Illinois?
The filing fee is $150.
How long does it take to form an LLC in Illinois?
1–2 days if filed online, 7–10 days by mail.
💰 Illinois LLC Filing Costs (2025)
| Items | Cost |
|---|---|
| Articles of Organization | $150 (online) |
| Registered Agent (annual) | $50–$150 |
| EIN | Free |
| Operating Agreement | Free (DIY) |
| Business Licenses | Varies |
| Annual Report | $75 |
🏛️ Illinois Secretary of State Contact Info
Office: Secretary of State – Department of Business Services
Phone: (217) 782-6961
Email: corporations@ilsos.gov
Address:
Secretary of State Department of Business Services
501 S. Second St., Rm. 350
Springfield, IL 62756Website: https://www.ilsos.gov
❓ FAQs - Illinois LLC
1. What is required to form an LLC in Illinois?
A name, a registered agent, Articles of Organization, and an EIN.
2. Do I need a business license in Illinois?
It depends on your location and industry. Some cities and counties require local business licenses.
3. Is an operating agreement required in Illinois?
Not legally required, but strongly recommended.
4. What is the annual fee for an Illinois LLC?
$75 per year for the required annual report.
5. Can I be my own registered agent in Illinois?
Yes, as long as you have a physical address in Illinois and are available during business hours.
6. Is an EIN required for an LLC in Illinois?
Yes, especially if you hire employees or open a business bank account.
7. Can I reserve an LLC name in Illinois?
Yes, for $25 you can reserve a name for 90 days.
8. Can a non-resident form an LLC in Illinois?
Yes, Illinois has no residency requirement for LLC owners.
About Us
We specialize in guiding individuals through the process of forming LLCs across all states, while also offering a range of comprehensive business services tailored to entrepreneurs.
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contact details
- support@tostartanllc.com
- +1 (646) 347-3833
- 1494 State St, Schenectady, NY 12304,
