To start a business in Illinois, file Articles of Organization ($150) or Articles of Incorporation ($150 plus any initial franchise tax) with the Illinois Secretary of State, get an EIN, register with the Illinois Department of Revenue through MyTax Illinois, and get any city or county licenses your business needs. After that, Illinois LLCs and corporations file a $75 annual report before the first day of their anniversary month each year.
Since January 1, 2025, Illinois exempts the first $10,000 of corporate franchise tax liability, so many small corporations now pay little or no franchise tax. All facts below reflect official sources as of October 2026.
Updated October 2026.
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Best Business Formation Services in Illinois (2026)
Our ranked picks for forming a business in Illinois are below, starting with Mainstay Filing. Each entry lists the yearly price and what the service covers.
| Rank | Provider | Best for | Price | What’s included |
|---|---|---|---|---|
| 1 | Mainstay Filing | Forming an LLC with the agent, EIN and annual report included | $199/year + state fee at cost | LLC formation filing, registered agent for the year, EIN application, annual report preparation and filing |
| 2 | IL Registered Agent.org | Illinois registered agent service only | $99/year | $99 per year, flat; in-state street address for the registered office; legal documents served on the company are scanned and sent to the owner online |
| 3 | Illinois Registered Agent.co | Illinois registered agent service only | $99/year | in-state street address for the registered office; legal documents served on the company are scanned and sent to the owner online |
1. Mainstay Filing
Mainstay Filing is our top pick in Illinois. It costs $199/year + state fee at cost and covers lLC formation filing, registered agent for the year, EIN application, annual report preparation and filing. The price stays the same every year, with no add-on menu.
2. IL Registered Agent.org
IL Registered Agent.org is a Illinois registered agent service at $99/year. It provides $99 per year, flat; in-state street address for the registered office; legal documents served on the company are scanned and sent to the owner online. It’s a fit if you only need a registered agent rather than full formation help.
3. Illinois Registered Agent.co
Illinois Registered Agent.co is a Illinois registered agent service at $99/year. It provides in-state street address for the registered office; legal documents served on the company are scanned and sent to the owner online. It’s a fit if you only need a registered agent rather than full formation help.
How much does it cost to start a business in Illinois?
| Item | Illinois (October 2026) |
|---|---|
| Filing office | Illinois Secretary of State, Department of Business Services |
| LLC Articles of Organization (LLC-5.5) | $150 ($400 for a series LLC) |
| Articles of Incorporation (Form BCA 2.10) | $150, plus initial franchise tax where owed |
| Annual report | $75, due before the first day of your anniversary month; $100 penalty if 60+ days late |
| Change of registered agent (LLC-1.36/1.37) | $25 |
| State tax registration | MyTax Illinois (Form REG-1) |
| Corporate franchise tax | First $10,000 of liability exempt since January 1, 2025 |
Picking a structure for your Illinois business
- Sole proprietorship: no Secretary of State filing; register an assumed name with your county clerk if you use a brand.
- General partnership: also no entity filing; partners are personally liable.
- LLC: $150 to form and $75 a year to keep active, with liability protection. Illinois also offers series LLCs ($400) for owners who want separate cells under one company.
- Corporation: $150 to file plus franchise tax based on paid-in capital. The 2025 exemption means many small corporations now owe only the filing and report fees.
LLCs taxed as partnerships and S corporations also pay Illinois’ personal property replacement income tax at the entity level, so talk to an accountant about the tax side. Our Illinois LLC guide explains the Articles of Organization in detail.
What will the first two years cost?
For a standard single-owner LLC, the Secretary of State charges $150 to form and $75 for the first annual report, which comes due before your first anniversary month. That puts state filing fees at about $225 over the first year or so. A corporation pays the same $150 and $75 plus any franchise tax above the $10,000 exemption, which small corporations usually don’t reach. Assumed names, local licenses and professional licenses are extra, and in Chicago and other large cities, local license fees can be a bigger line item than the state filings.
How do you name an Illinois business?
Search the Secretary of State’s business entity database first. An Illinois LLC name must include “limited liability company,” “L.L.C.” or “LLC,” and can’t include words like “corporation” or “incorporated.” Corporations need “corporation,” “company,” “incorporated” or “limited,” or an abbreviation. Our Illinois business name search guide explains the search and naming rules.
For ideas, run the Namechk business name generator, then check matching domains and social handles on Namechk.
Assumed names in Illinois
LLCs and corporations that want to operate under a different name file an assumed name with the Secretary of State. Sole proprietors and general partnerships register assumed names with the county clerk in each county where they do business under the Assumed Business Name Act; ask the clerk about the local fee and the newspaper notice step.
Choosing an Illinois registered agent
Every Illinois LLC and corporation must keep a registered agent and registered office in Illinois. Under 805 ILCS 180/1-35 and the Secretary of State’s forms, the agent must be an Illinois resident or a business entity registered with the Secretary of State, and the LLC may not act as its own registered agent. The registered office must be a street address (not just a P.O. box) that matches the agent’s business office.
An Illinois-resident owner can serve personally if they’re at that address during business hours. Otherwise, Mainstay Filing includes a registered agent for the first year with its formation service. Changing your agent later takes a Statement of Change (LLC-1.36/1.37) with a $25 filing fee; the annual report can’t be used for that. Our Illinois registered agent guide has the details.
Filing your Articles with the Secretary of State
- File online through the Secretary of State’s business services site or mail the LLC-5.5 form (LLC) or BCA 2.10 (corporation) in duplicate.
- Include the name, principal place of business, registered agent and office, and the organizer, managers or members (LLC) or incorporators and authorized shares (corporation).
- Pay $150. Corporations also pay the initial franchise tax calculated on Illinois-allocated paid-in capital, though the first $10,000 of liability is exempt.
- Keep the filed Articles for your bank and tax registration.
Next, adopt an operating agreement or bylaws. Illinois doesn’t file them, but they settle ownership and decision-making questions early. For a fuller cost breakdown, see Mainstay’s Illinois LLC cost guide.
Getting an EIN
Apply on the IRS website for free. MyTax Illinois registration and most banks ask for it, so get the EIN as soon as your Articles are approved and keep the IRS confirmation with your records.
U.S. companies don’t file federal beneficial ownership reports anymore; FinCEN’s final rule took effect August 14, 2026.
Registering with the Illinois Department of Revenue
According to the Illinois Department of Revenue (IDOR), you must register if you conduct business in Illinois or with Illinois customers. The fastest route is MyTax Illinois: on the homepage, choose Register a New Business (Form REG-1). Paper REG-1 applications take six to eight weeks to process.
- Sales and use tax: IDOR issues a Certificate of Registration when you register for Retailers’ Occupation Tax (sales tax) and use tax. You need it if you sell, lease or rent tangible personal property, and you can print it from MyTax Illinois.
- Withholding: employers register to withhold Illinois income tax.
- Unemployment insurance: employers register separately with the Illinois Department of Employment Security and report new hires.
Illinois sales tax rates combine a state rate with local home-rule and county rates, so check the rate for each location where you sell.
Licenses and permits in Illinois
Illinois has no general statewide business license. Requirements come from:
- Cities and counties: Chicago and many other municipalities require business licenses, and zoning approval applies to storefronts and home-based work.
- The Illinois Department of Financial and Professional Regulation: licenses many professions, from accountants and barbers to contractors in some trades.
- Other state agencies: the Liquor Control Commission for alcohol, and public health departments for food businesses.
Start with your city’s business licensing office, since it will usually tell you which zoning, health and building approvals apply at your address. If you’ll operate in more than one municipality, check each one separately; Illinois cities set their own license categories and renewal cycles.
Banking, insurance and getting online
Open a business bank account with your filed Articles and EIN, and keep business money separate from personal funds. That separation supports your liability protection.
Add general liability insurance, professional liability for service businesses, and workers’ compensation before you hire employees. Then claim a domain that matches your name and launch a simple website.
If you plan to sell in Chicago and the suburbs, list every service area on the site so customers can tell where you operate.
Our picks of the best website builders
Annual compliance for Illinois businesses
- File the annual report before the first day of your anniversary month every year; filing opens about 60 days earlier. The fee is $75 for LLCs. Corporations pay $75 plus franchise tax, though the first $10,000 of franchise tax liability is now exempt.
- A $100 penalty applies to LLC reports filed 60 or more days late.
- LLCs with eight or fewer members can file online; larger LLCs, filings signed under power of attorney and reinstatements use the paper LLC-50.1 report.
- Registered agent changes need a separate $25 statement of change.
- File sales, withholding and income or replacement tax returns with IDOR on schedule.
FAQs
How much does it cost to start an LLC in Illinois?
Filing Articles of Organization (LLC-5.5) with the Illinois Secretary of State costs $150, or $400 for a series LLC, as of October 2026. Illinois LLCs then file a $75 annual report each year before the first day of their anniversary month. Local business licenses and any assumed name filings cost extra.
When is the Illinois LLC annual report due?
The Illinois LLC annual report is due before the first day of the LLC’s anniversary month each year, and the fee is $75 whether you file online or by mail. A $100 penalty applies starting on the 60th day after the due date. LLCs with eight or fewer members can file online.
Do Illinois corporations still pay franchise tax?
Yes, but much less for small companies. Illinois corporations pay franchise tax based on Illinois-allocated paid-in capital, collected at incorporation and with each annual report. Since January 1, 2025, the first $10,000 of annual franchise tax liability is exempt, so many small corporations owe only the $75 annual report fee.
Can my LLC be its own registered agent in Illinois?
No. The Illinois Secretary of State’s forms state that an LLC may not act as its own registered agent. The agent must be an Illinois resident or a business entity registered with the Secretary of State, at an Illinois street address that matches its business office. Changing the agent later costs $25.
How do I register for Illinois business taxes?
Register with the Illinois Department of Revenue through MyTax Illinois by choosing Register a New Business (Form REG-1). Businesses that sell, lease or rent tangible goods receive a Certificate of Registration for sales and use tax. Paper REG-1 applications are accepted but take six to eight weeks to process.
Where do I file a DBA in Illinois?
It depends on the business. LLCs and corporations file an assumed name with the Illinois Secretary of State. Sole proprietors and general partnerships register their assumed business name with the county clerk in each county where they operate, under the Assumed Business Name Act, and should ask the clerk about fees and the required notice.
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