What Does an LLC Cost in Illinois?
Illinois: $150 in, $75 a year, and one income-based tax that depends on how your LLC is classified. The fixed part is easy. The replacement tax is the line founders do not see coming.
Year one: what you pay to exist
| Year-one cost in Illinois | Amount |
|---|---|
| Articles of Organization (Form LLC 5.5) | $150 |
| Optional: 24-hour expedited handling by the state | +$100 |
| EIN from the IRS | $0 |
| Operating agreement (you write it, not filed) | $0 |
| Total state cost, year one | $150 |
A commercial registered agent adds roughly $125 to $249 a year if you hire one rather than naming an individual. Online filings also carry a payment processor fee on top of the state fee.
Every year after: the cost of staying alive
| Recurring cost in Illinois | Amount |
|---|---|
| Annual report (Form LLC 50.1), every year | $75 |
| Personal Property Replacement Tax, partnership-classified LLCs | 1.5% of net Illinois income |
| Late annual report penalty, if you trigger it | $100 after 60 days |
| Typical recurring total | $75/yr + income-based tax |
The $75 is the floor. Most operating LLCs also owe the replacement tax described below, computed on Illinois income, so the real recurring cost scales with profit rather than sitting flat like most states.
The Personal Property Replacement Tax, by classification
Illinois taxes LLCs at the entity level through the Personal Property Replacement Tax, and which return you file follows your federal tax classification, per the Department of Revenue:
| Federal classification | Illinois return | Replacement tax rate |
|---|---|---|
| Partnership (the multi-member default) | Form IL-1065 | 1.5% of net Illinois income |
| S corporation (by election) | Form IL-1120-ST | 1.5% of net Illinois income |
| C corporation (by election) | Form IL-1120 | 2.5% of net Illinois income |
| Disregarded (single-member default) | No separate Illinois income filing; income lands on the owner's return | No entity-level return |
This is a tax on income, so it sits on top of the owners' regular Illinois income tax picture rather than replacing it. It is also the reason Illinois LLCs with real profit should model their classification with a tax professional instead of defaulting blindly.
Sources, checked Nov 7, 2026
Illinois Secretary of State, Department of Business Services: LLC fee schedule and publications (Forms LLC 5.5, 5.5(S), 45.5, 50.1), online filing instructions, and the LLC organizing guide (Publication C 334), all at ilsos.gov. Illinois Department of Revenue, Personal Property Replacement Tax pages and LLC filing Q&A at tax.illinois.gov.
Run your own version, with an optional registered agent added, in the LLC cost calculator. If you would rather a service handled the filing, the services comparison prices that honestly, renewals included.
General Information Only
LLCForming publishes general information about forming and running an LLC. It is not legal, tax, or accounting advice, and it does not create an attorney or advisor relationship. Rules vary by state and by your situation. For a decision that matters, talk to a licensed attorney or tax professional in your state.