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Illinois LLC Annual Tax & Fee Calculator
Calculate your total costs for forming and maintaining an LLC in Illinois. Moderate filing fees.
Need Registered Agent Service?
Required if no IL address
First Year Total
$225
One-Time Formation Costs
Annual Fees
Very Low Ongoing Costs
Illinois has some of the lowest LLC maintenance costs. Great choice for budget-conscious business owners.
Illinois LLC Key Facts
Important information for Illinois LLC owners
Moderate filing fees
1.5% Personal Property Replacement Tax
Large business market in Chicago
Central US location
Illinois LLC Deadlines & Due Dates
Important dates for Illinois LLC compliance
Annual Tax Due
March 15 (if taxed as partnership)
Annual Report
First day of anniversary month
Processing Time
5-10 business days
Illinois LLC Forms
Required forms for Illinois LLC compliance
Illinois LLC FAQ
Common questions about Illinois LLC taxes and fees
LLC Formation and Annual Costs in Illinois (2026)
Forming an LLC in Illinois requires a $150 filing fee paid to the Illinois Secretary of State. After formation, Illinois LLCs must pay a $75 annual fee for the annual report. The state also charges a Personal Property Replacement Tax (1.5% of net income, yearly): Applies to LLCs taxed as partnerships or S-corps.
| Fee Type | Amount | Frequency |
|---|---|---|
| Articles of Organization (filing fee) | $150 | One-time |
| Annual Report / Annual Fee | $75 | Yearly |
| Personal Property Replacement Tax | 1.5% of net income | Yearly |
| Registered Agent (optional, if using service) | $125/year | Yearly |
Your total first-year cost (filing fee + annual fee) is approximately $225. Ongoing costs are $75 or more per year in recurring fees.
Illinois LLC Compliance Requirements
Maintaining your Illinois LLC in good standing requires meeting several compliance obligations.
Annual Report: Illinois LLCs must file an annual report by First day of anniversary month. The filing fee is $75.
Registered Agent: Every Illinois LLC must maintain a registered agent with a physical address in the state. The registered agent receives legal and tax documents on behalf of the LLC. You can serve as your own registered agent or hire a professional service (typically $125/year).
Operating Agreement: While Illinois does not legally require an operating agreement, having one is strongly recommended. It defines ownership structure, member roles, profit-sharing, and management procedures for your LLC.
EIN (Employer Identification Number): All LLCs with more than one member, or that have employees, need an EIN from the IRS. Single-member LLCs without employees can use their Social Security number but obtaining an EIN is still recommended for banking and tax purposes. Applying is free through the IRS website.
Tax Treatment of Illinois LLCs
Illinois LLCs are classified as pass-through entities for federal tax purposes. A single-member LLC is treated as a disregarded entity (reported on Schedule C of the owner's personal return), while a multi-member LLC is taxed as a partnership (filing Form 1065 with K-1s issued to each member).
Illinois taxes LLC income at the state's flat personal income tax rate of 4.95%. Additionally, LLCs taxed as partnerships or S-Corps must pay a 1.5% Personal Property Replacement Tax on net income. This means Illinois LLC owners face a combined state rate that is slightly above the base personal income tax rate.
S-Corp Election: Illinois LLCs can elect S-Corp tax status by filing IRS Form 2553. This can reduce self-employment taxes for profitable LLCs by splitting income between a reasonable salary (subject to payroll taxes) and distributions (not subject to SE tax). This election is typically beneficial when your LLC consistently earns over $40,000-$50,000 in annual profit.
Official Illinois Resources
- Illinois Secretary of State
Business filings
- Illinois Department of Revenue
Tax information
Fees are subject to change. This calculator provides estimates based on current Illinois law. Consult with a tax professional or attorney for advice specific to your situation. Fee information accurate as of January 12, 2026.