Illinois LLC Costs 2026: $150 to Form + $75/yr

Quick Answer

Illinois LLCs pay $150 to form and $75/year for the annual report (due before the first day of the anniversary month). A multi-member LLC taxed as a partnership pays the Personal Property Replacement Tax (PPRT) of 1.5% on net income; an LLC taxed as a C-corporation pays 2.5%. Illinois has no separate franchise tax on LLCs.

Key Takeaways

$150 LLC formation fee (Articles of Organization)

$75 annual report due before the first day of the LLC's anniversary month

Personal Property Replacement Tax: 1.5% for partnership/S-corp-taxed LLCs, 2.5% for C-corp-taxed LLCs, on net income

Members pay Illinois's flat 4.95% income tax on their share of profits

Late annual report penalty: $100 (plus $100 per additional year of delinquency)

Foreign LLC registration: $150; reinstatement after dissolution: $200

Item	Cost/Details	Notes
LLC Formation (Articles of Organization)	$150	One-time filing fee
Annual Report	$75	Due before anniversary month
Late Annual Report Penalty	$100	Plus $100 per additional year delinquent
Foreign LLC Registration (LLC-45.5)	$150	For out-of-state LLCs
Reinstatement After Dissolution	$200	Plus all back fees and penalties
Registered Agent Change	$25	$25 by mail; $75 online
PPRT (partnership/S-corp-taxed LLC)	1.5%	On LLC net income
PPRT (C-corp-taxed LLC)	2.5%	On LLC net income

Item

Cost/Details

Notes

LLC Formation (Articles of Organization)

$150

One-time filing fee

Annual Report

$75

Due before anniversary month

Late Annual Report Penalty

$100

Plus $100 per additional year delinquent

Foreign LLC Registration (LLC-45.5)

$150

For out-of-state LLCs

Reinstatement After Dissolution

$200

Plus all back fees and penalties

Registered Agent Change

$25

$25 by mail; $75 online

PPRT (partnership/S-corp-taxed LLC)

1.5%

On LLC net income

PPRT (C-corp-taxed LLC)

2.5%

On LLC net income

Illinois LLC Formation Costs

Forming an LLC in Illinois requires filing Articles of Organization with the Illinois Secretary of State and paying a $150 filing fee. This is a one-time cost to create your LLC. For the full set of state requirements, see our Illinois LLC compliance hub.

How to File

Online: File through CyberDrive Illinois at ilsos.gov (1-2 business days)
Mail: Send to the Illinois Secretary of State, Springfield office (6-8 weeks)
In person: Available at Springfield or Chicago offices

Tip: Illinois does not offer expedited processing for online filings — standard processing is 1-2 business days, which is already faster than mail. Save the mail option for complex filings only.

Illinois LLC Annual Report Requirements

Illinois requires all LLCs to file an Annual Report with the Secretary of State. The fee is $75 and it is due before the first day of the LLC's anniversary month.

Annual Report Due Date Examples

LLC Formation Month	Annual Report Due By
January	December 31
March	February 28/29
June	May 31
September	August 31

The annual report must include your LLC's registered agent information, principal office address, and the names/addresses of managers or members. For a step-by-step walkthrough of the filing, see our Illinois LLC annual report guide, and review who can serve in our Illinois registered agent requirements.

Illinois Personal Property Replacement Tax (PPRT)

Illinois imposes a Personal Property Replacement Tax (PPRT) on a business's net Illinois income. It replaced the revenue local governments lost when Illinois abolished the personal property tax in 1979. The rate your LLC pays depends on how the LLC is taxed federally — not on whether its members are individuals or corporations.

PPRT Rates for LLCs

How the LLC Is Taxed	PPRT Rate
Partnership or S corporation (default for most LLCs)	1.5% of net income
C corporation (by election)	2.5% of net income

Important: Most LLCs default to partnership or sole-proprietor tax treatment, so the 1.5% rate applies. A partnership-taxed LLC reports the PPRT on Form IL-1065; the tax is owed by the entity even though profits also pass through to members' personal returns. A single-member LLC with no separate federal return generally reports its income on the owner's IL-1040 and does not file IL-1065.

PPRT Examples (1.5% partnership rate)

Net Income	PPRT (1.5%)	PPRT if C-corp (2.5%)
$0	$0	$0
$50,000	$750	$1,250
$100,000	$1,500	$2,500
$250,000	$3,750	$6,250

Illinois Income Tax for LLC Members

Illinois has a flat 4.95% personal income tax rate. LLC members who are Illinois residents pay 4.95% on their share of LLC income on their personal IL-1040 return.

Pass-through income from the LLC flows to members' personal IL-1040 returns at 4.95%
Illinois does not conform to all federal LLC deductions — review IL adjustments
Non-resident members may owe Illinois tax on IL-sourced LLC income
Chicago has no separate city income tax (unlike New York City)
Partnership- and S-corp-taxed LLCs may elect the optional Pass-through Entity (PTE) tax of 4.95%, paid at the entity level so members can claim a credit and work around the federal SALT cap

Total Annual Cost Estimate

Item	Typical Cost
Annual Report	$75
PPRT (if profitable)	$0–varies
Registered Agent (if using service)	$50–$150
Minimum Annual Total	$75+

Comparison: Illinois's $75 annual report fee sits in the middle of the pack. It is higher than New York's $9 biennial statement but far below Massachusetts's $500/year report. The main variable cost is the PPRT if your LLC is profitable.

Late Filing Penalties

Illinois cut its LLC late-filing penalty under House Bill 4578 (amending 805 ILCS 180/50-15). The penalty is no longer the old $300 flat charge:

Late penalty: $100 if the report is not filed before the first day of the second month after your anniversary month (a short grace window after the deadline)
Ongoing penalty: an additional $100 for each year (or fraction of a year) the report stays delinquent, beginning with the second year
Dissolution risk: roughly 180 days of non-compliance leads to administrative dissolution
Reinstatement: requires filing all overdue reports, paying accrued penalties, and a $200 reinstatement fee

Warning: Even at the reduced $100, a late filing more than doubles your $75 report cost — and reinstatement after dissolution adds a $200 fee on top of back penalties. Set a calendar reminder before your anniversary month to avoid both.

Frequently Asked Questions

How much is the Illinois LLC annual report fee?

The Illinois LLC annual report fee is $75. It must be filed before the first day of the LLC's anniversary month each year. For example, if you formed your LLC in June, the report is due by May 31.

What is the Illinois Personal Property Replacement Tax?

The Personal Property Replacement Tax (PPRT) is a state tax on a business's net Illinois income. The rate depends on how the LLC is taxed, not on the type of its members: an LLC taxed as a partnership or S corporation pays 1.5%, while an LLC that has elected to be taxed as a C corporation pays 2.5%. It replaced revenue local governments lost when the personal property tax was abolished in 1979.

Does Illinois have a franchise tax on LLCs?

No, Illinois does not impose a franchise tax on LLCs (the corporate franchise tax that once applied to corporations is being phased out and never covered LLCs). The Personal Property Replacement Tax is the main entity-level tax an LLC may owe, at 1.5% of net income for a partnership-taxed LLC.

When is the Illinois LLC annual report due?

The Illinois LLC annual report is due before the first day of your LLC's anniversary month. So if your LLC was formed on March 15, the annual report must be filed by February 28 (or the last day before March begins).

Can I file the Illinois LLC annual report online?

Yes, you can file the Illinois LLC annual report online through the Illinois Secretary of State's CyberDrive Illinois portal at ilsos.gov.

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