Illinois LLC Taxes & Fees 2026: Complete Guide
Quick Answer
Illinois LLCs pay $150 to form and $75/year for the annual report (due before the anniversary month). Illinois also imposes a Personal Property Replacement Tax (PPRT) of 1.5%–2.5% on LLC net income. There is no traditional franchise tax, but the PPRT functions similarly for LLCs with taxable net income.
Key Takeaways
- $150 LLC formation fee (Articles of Organization)
- $75 annual report due before the LLC's anniversary month
- Personal Property Replacement Tax: 1.5% (corporate partners) or 2.5% (individual partners) on net income
- No state income tax on pass-through LLC income at the entity level
- Late annual report penalty: $300 + $100/month
- Foreign LLC registration: $150
| 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 | $300 + $100/mo | Starting after anniversary date |
| Foreign LLC Registration | $150 | For out-of-state LLCs |
| Registered Agent Change | $25 | Fee to update RA |
| PPRT (Individual Partners) | 2.5% | On LLC net income |
| PPRT (Corporate Partners) | 1.5% | 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.
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.
Illinois Personal Property Replacement Tax (PPRT)
Illinois imposes a Personal Property Replacement Tax (PPRT) on LLC net income. This is a unique Illinois tax that replaced the old personal property tax system.
PPRT Rates for LLCs
| LLC Type | PPRT Rate |
|---|---|
| LLC with individual/trust partners | 2.5% of net income |
| LLC with corporate partners | 1.5% of net income |
Important: The PPRT is paid by the LLC itself — it is an entity-level tax, not passed through to members. File using Form IL-1065 for partnership-taxed LLCs.
PPRT Examples
| Net Income | PPRT (2.5%) | PPRT (1.5%) |
|---|---|---|
| $0 | $0 | $0 |
| $50,000 | $1,250 | $750 |
| $100,000 | $2,500 | $1,500 |
| $250,000 | $6,250 | $3,750 |
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 LLC flows to members' personal returns
- 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)
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 is one of the more affordable in the country. Compare to Massachusetts ($500/year) or New York ($25 biennial). The main variable cost is the PPRT if your LLC is profitable.
Late Filing Penalties
Missing your Illinois LLC annual report deadline triggers significant penalties:
- Immediate penalty: $300 for failure to file by the due date
- Ongoing penalty: $100 per month after the anniversary date
- Dissolution risk: Continued non-compliance can result in administrative dissolution
- Reinstatement: Requires filing all overdue reports and paying accumulated penalties
Warning: The $300 initial penalty is 4x the $75 annual report fee. Set a calendar reminder well before your anniversary month to avoid this preventable cost.
Frequently Asked Questions
How much is the Illinois LLC annual report fee?
What is the Illinois Personal Property Replacement Tax?
Does Illinois have a franchise tax on LLCs?
When is the Illinois LLC annual report due?
Can I file the Illinois LLC annual report online?
Official Source
For the most up-to-date information, always verify requirements with the official Illinois Secretary of State website:
https://www.ilsos.govImportant 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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