Illinois business formation
How to start an LLC in Illinois
An Illinois LLC is formed by filing one document with the Secretary of State and keeping it current every year. The paperwork is straightforward; the decisions behind it — the name, who manages it, how it is taxed — are where it pays to get it right the first time.
The short version
Forming an LLC in Illinois means filing Articles of Organization with the Illinois Secretary of State, appointing a registered agent with a physical Illinois address, getting an EIN from the IRS, and putting an operating agreement in place. Online filings are usually processed in a few business days; mailed ones take several weeks.
After that it is one filing a year — the annual report — that keeps the company in good standing. Everything below is those steps in order.
The steps, in order
None of these is hard on its own. The order matters because each one depends on the last.
- Choose a name that is available and meets the state’s rules (below). This is the only step that can stop the whole filing, so do it first.
- Appoint a registered agent with a physical street address in Illinois — no P.O. boxes — available during business hours to receive legal and state mail. You can be your own, or use a service.
- File the Articles of Organization (form LLC-5.5) with the Secretary of State, online or by mail. This is the filing that actually creates the LLC, and it asks whether the company is member-managed or manager-managed.
- Get an EIN from the IRS. It is free, it takes minutes online, and you need it to open a bank account, hire, or elect a tax treatment.
- Write an operating agreement. Illinois does not file it, but the LLC Act expects one to exist, and banks and courts ask to see it.
- Calendar the annual report. It is due every year before your anniversary month, and missing it is the most common way an LLC loses good standing.
What it costs
Two state fees matter, and they are separate. Illinois charges $150 to file the Articles of Organization — the one-time cost to create the LLC — and $75 a year for the annual report that keeps it active. A series LLC and expedited processing cost more. The EIN from the IRS is free.
Those are the State’s own figures and they do change, so the Secretary of State’s page is the one to trust before you pay. Anyone quoting a single blended price should be showing you the State’s fee as its own line — the same way we do.
One honest note on "free": searches for forming an Illinois LLC "for free" are common, and the state filing fee is not waivable by anyone. What a service can waive is its own charge on top. The $150 to the State is unavoidable however you file.
Choosing a name that will clear
The name is where filings get bounced, so it is worth two minutes up front.
- It must include an LLC designator: "LLC", "L.L.C." or "Limited Liability Company".
- It must be distinguishable from every other business name already on the Illinois register — search the Secretary of State’s business database before you commit.
- It cannot imply a purpose the LLC is not authorised for, or use restricted words (banking, insurance and similar) without approval.
- If the name you want is taken for your trading purposes but the legal name is free, an assumed name (DBA) lets you trade under it — a separate filing.
Member-managed or manager-managed
Illinois is one of the few states that makes you declare this on the Articles of Organization itself, so decide before you file rather than after.
Member-managed means the owners run the company day to day — the default for most small LLCs. Manager-managed means the members appoint one or more managers (who may be members or outsiders) to run it, which suits passive investors or a larger ownership group. It is not permanent, but changing it later is another filing, so the cheaper path is to choose correctly now.
After you form: staying in good standing
The company exists the day the State accepts your Articles. Keeping it alive is the part people forget.
File the annual report every year before your anniversary month, keep a registered agent who actually receives mail on file, and keep personal and business money separate so the liability shield holds. Miss the annual report long enough and the State administratively dissolves the LLC; bringing it back is a separate reinstatement filing. When a bank or another state asks whether you are current, that is a certificate of good standing, and you can only get one if the reports are filed.
Want your Illinois LLC formed for you?
USTAXX files the Articles of Organization, gets your EIN, drafts the operating agreement and can act as your Illinois registered agent — so the whole thing lands together instead of in pieces.
Questions people ask
How much does it cost to start an LLC in Illinois?
The State charges $150 to file the Articles of Organization and $75 a year for the annual report after that. The EIN from the IRS is free. Series LLCs and expedited processing cost more; check the Secretary of State for current figures.
How long does it take to form an Illinois LLC?
Online filings are usually processed within a few business days; mailed filings take several weeks. With your name, registered agent and details ready, the whole setup can be done in about a week.
Do I need a registered agent for an Illinois LLC?
Yes. Every Illinois LLC must have a registered agent with a physical street address in the state, available during business hours. You can act as your own, or appoint a service.
Can I form an Illinois LLC for free?
No. The $150 Articles of Organization fee is paid to the State and cannot be waived. A service can waive its own fee, but the State’s fee is unavoidable however you file.
What is the difference between member-managed and manager-managed?
Member-managed means the owners run the LLC; manager-managed means they appoint managers to run it. Illinois makes you state which on the Articles of Organization, so decide before you file.
Do I need an operating agreement in Illinois?
It is not filed with the State, but the Illinois LLC Act expects one to exist, and banks and courts routinely ask to see it. Forming without one is a gap worth closing early.
Where these rules come from
General information, current when written, not advice about your situation. Fees and forms change; the official pages above are the authority.