Form an LLC in Illinois — or skip the wait with a ready-made one

Illinois is a major business state anchored by Chicago. With a $150 filing fee and a $75/year annual report, it gives you access to a world-class economy — and since the franchise tax was repealed in 2024, the recurring cost is lower than it used to be.

Chicago is a global hub for finance, technology, manufacturing, and logistics — home to CME, CBOE, numerous Fortune 500 headquarters, O'Hare International Airport, and extensive rail and highway networks. If your customers, premises, or operations are physically in Illinois, forming here makes sense.

But Illinois's 4.95% flat income tax and above-average filing fees make it more expensive than formation-friendly states. If you have no real nexus in Illinois and just need a clean US entity to trade, Wyoming or Arizona are cheaper — and a ready-made Wyoming LLC that already has its EIN lets you start banking today instead of waiting weeks.

Form in Illinois yourself vs. buy ready-made

All fees below are sourced from the Illinois Secretary of State fee schedule.

Step 1: Choose your LLC name

Search for available names on the Illinois Business Entity Search. Your name must include "Limited Liability Company," "LLC," or "L.L.C." and be distinguishable from existing entities on file.

Step 2: Appoint a registered agent

Every Illinois LLC must have a registered agent with a physical street address in Illinois, available during normal business hours to accept legal documents on behalf of the LLC.

Step 3: File Articles of Organization

File online through the Illinois Secretary of State. The filing requires:

• LLC name with designator
• Registered agent name and Illinois address
• Principal place of business
• Purpose of the LLC
• Management structure
• Name and address of each manager/member
• $150 filing fee

Step 4: Create an Operating Agreement

While not always legally required in Illinois, an Operating Agreement is essential for banking, tax compliance, and internal governance. It establishes member rights, profit distribution, and management structure. We include a custom Operating Agreement in every formation package.

Step 5: Obtain an EIN

Apply for an Employer Identification Number (EIN) from the IRS — your LLC's tax ID, required for banking, hiring, and tax filings. Online application is available for those with an SSN; fax or mail application for international applicants without an SSN. (A ready-made Wyoming LLC skips this entirely — its EIN already exists.)

Step 6: Register for Illinois taxes (if applicable)

If you will sell taxable goods or services in Illinois, register with the Illinois Department of Revenue for applicable tax accounts including sales tax and income tax withholding if you have employees.

1. Annual report: Due during anniversary month. Fee: $75.
2. Federal tax filing: Form 5472 with pro forma 1120 for foreign-owned LLCs.
3. Illinois income tax: 4.95% flat rate on IL-sourced income.
4. Sales tax: 6.25% + local additions.
5. Registered agent: Maintain an agent with an IL address.
6. FinCEN BOI Report: Required.

Illinois taxes for LLCs

The franchise tax repeal in 2024 was a significant win. The $75/year annual report is now the only recurring state filing fee.

Expedited processing is available for $100. Standard online filing takes 3–5 business days — and that's before the EIN. If you can't wait, a ready-made Wyoming LLC is live within 24 hours.