LLC ComplianceIL

Illinois LLC Compliance Guide 2026: Complete Checklist

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US Business Compliance Research Team
Expert LLC compliance researchers

Quick Answer

To keep your Illinois LLC in good standing, you must: (1) file an annual report ($75) before your anniversary month each year, (2) maintain a registered agent with an Illinois physical address, (3) pay the Personal Property Replacement Tax (PPRT) on net income if applicable, and (4) file Illinois income tax returns as required.

Key Takeaways

  • Annual report: $75, due before the anniversary month
  • Maintain a registered agent with a physical Illinois address
  • Pay PPRT on net income: 1.5%–2.5%
  • Late annual report penalty: $300 + $100/month
  • File IL-1065 (partnership) or IL-1040 (Schedule K-1) as applicable
  • Keep your LLC name registered — check for renewal requirements
ItemCost/DetailsNotes
Annual Report$75Before anniversary month
Late Annual Report Penalty$300 + $100/moAfter anniversary date
Registered Agent Change$25If updating RA
LLC Dissolution$5Articles of Dissolution
LLC ReinstatementVariesAll back fees + penalties

Illinois LLC Annual Compliance Checklist

Use this checklist to keep your Illinois LLC in good standing every year:

  • ✅ File annual report ($75) — before your anniversary month
  • ✅ Confirm registered agent is current and has an active Illinois address
  • ✅ File Illinois state income tax returns (IL-1065 for partnership LLCs)
  • ✅ Pay Personal Property Replacement Tax (PPRT) if your LLC had net income
  • ✅ Pay estimated quarterly PPRT payments if applicable
  • ✅ Confirm your registered office address is up to date
  • ✅ Review your operating agreement for any required member meetings or votes

Annual Report Details

The Illinois Annual Report must be filed with the Secretary of State every year. It is due before the first day of the LLC's anniversary month.

The annual report requires:

  • LLC name and principal office address
  • Registered agent name and Illinois address
  • Names and addresses of managers (or members, if member-managed)
  • $75 filing fee payment

File online at ilsos.gov for fastest processing (1-2 business days).

Illinois Tax Compliance

Personal Property Replacement Tax (PPRT)

LLCs taxed as partnerships must file Form IL-1065 and pay the PPRT:

  • 2.5% of net income for LLCs with individual/trust partners
  • 1.5% of net income for LLCs with corporate partners
  • Due April 15 for calendar-year filers
  • Estimated payments required if PPRT liability exceeds $500/year

Member Income Tax

LLC members pay Illinois personal income tax (4.95%) on their distributive share of LLC income on Form IL-1040 (Schedule NR for non-residents).

Registered Agent Requirements

Your Illinois LLC must always have a registered agent with a physical Illinois street address. If your registered agent changes their address or resigns, you must file an update within a reasonable time. Failure to maintain a current registered agent can result in the LLC being unable to receive service of process — and potential dissolution.

Penalties for Non-Compliance

ViolationPenalty
Late annual report filing$300 + $100/month
Administrative dissolutionLoss of good standing; cannot do business
Late PPRT payment2% per month + interest
No registered agentPossible dissolution; missed legal documents

How to Dissolve an Illinois LLC

If you want to close your Illinois LLC, follow these steps:

  1. Hold a member vote to approve dissolution (per your operating agreement)
  2. Wind up LLC affairs: pay creditors, settle obligations, distribute remaining assets
  3. File final Illinois tax returns (IL-1065) and pay any outstanding PPRT
  4. File Articles of Dissolution with the Illinois Secretary of State ($5 fee)
  5. Cancel any assumed names or DBA registrations
  6. Close your Illinois business bank accounts

Frequently Asked Questions

What happens if I miss the Illinois LLC annual report deadline?

If you miss the deadline, you'll owe a $300 penalty immediately, plus $100 per month for continued non-filing. Extended non-compliance can lead to administrative dissolution, requiring reinstatement with all accumulated fees.

How do I know when my Illinois LLC annual report is due?

Your annual report is due before the first day of your LLC's anniversary month. Check your original LLC formation date in your Articles of Organization or on the Illinois Secretary of State website.

What is the Illinois LLC dissolution fee?

The fee to voluntarily dissolve an Illinois LLC by filing Articles of Dissolution is $5. However, you must resolve all outstanding obligations (taxes, annual reports) before dissolving.

Can my Illinois LLC be reinstated after dissolution?

Yes. If your LLC was administratively dissolved for failing to file annual reports, you can reinstate it by filing an Application for Reinstatement and paying all overdue annual report fees and penalties.

Official Source

For the most up-to-date information, always verify requirements with the official Illinois Secretary of State website:

https://www.ilsos.gov

Important Disclaimer

This article is for informational purposes only and does not constitute legal advice. LLC requirements, fees, and deadlines change frequently. Always verify current requirements with your state's Secretary of State office before making business decisions.

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