Home / Business Foundation / Illinois

How to start a business in Illinois

The fees, filing links and deadlines for forming and registering a business in Illinois, with the official page for each step.

Last verified October 24, 2026 General information, not legal, tax or insurance advice. Each fee shows the date we checked it on the official page. Fees change, so confirm on the official page before you pay.

LLC filing fee: $150
LLC, first year (state fees): $225
Corporation filing fee: $150
Annual report: $75
DBA filed with: County
General state license: No
Newspaper notice: No

How much does it cost to form an LLC or corporation in Illinois?

To form an LLC, file Articles of Organization (Form LLC-5.5) with the Illinois Secretary of State, Department of Business Services for $150 (checked Oct 24, 2026) The $150 fee is confirmed in statute (805 ILCS 180/50-10; $400 for an LLC with series). You can file online. A corporation files Articles of Incorporation for $150 (checked Oct 24, 2026) The $150 filing fee is confirmed in statute (805 ILCS 5/15.10). That filing fee is not the whole bill: see what it costs in the first year.

What does an LLC really cost in its first year in Illinois?

Filing fees are only part of the cost. Here is every state fee and minimum tax we found that a new LLC must pay to form and stay in good standing for its first year. Example: Single-member LLC filed online at standard speed, operating from day one with no employees; licenses every business must hold are counted, sales tax permits are listed separately.

State fee	Cost	When	Checked
Articles of Organization filing fee		at filing	Oct 24, 2026
First LLC annual report	$75	within the 60 days before the first anniversary month (about 10 to 12 months after formation)	Oct 24, 2026

First-year total: $225 in state fees. Formation $150 plus the $75 first annual report, due in the 60 days before the first day of the anniversary month in the year after formation. Illinois law says an online filing is not expedited unless you ask for it, so the optional $100 expedite fee is not counted. Excludes the LLC assumed name fee, registered agent services, county and city licenses, and optional fees.

After the first year: Each year: the $75 LLC annual report, due in the 60 days before the anniversary month ($100 penalty if late). An LLC assumed name renews for $150 every 5 years.

Fees that apply only in some cases

State fee	Cost	When	Checked
Expedited filing of articles of organization Optional by statute; may be charged on every online LLC filing (unconfirmed)		at filing	Oct 24, 2026
LLC assumed name (DBA) with the Secretary of State If the LLC does business under another name; $120 when filed in 2026, $90 in 2027 (fee depends on the year), renewal $150 for 5 years	$120	before using the name	Oct 24, 2026
Series LLC filing (instead of the $150 fee) Only if the LLC can form series	$400	at filing	Oct 24, 2026
Department of Revenue registration (sales tax Certificate of Registration) If you sell taxable goods or owe other state business taxes	$0	before making sales or hiring	Oct 24, 2026
Unemployment insurance registration (IDES) If you hire employees	$0 The IDES page lists no registration fee.	within 30 days of start-up	Oct 24, 2026

Not included: city or county licenses, a registered agent service if you hire one, and optional extras such as expedited filing. Fees can change after the date shown; confirm on the official page before you pay.

Do I need to register a DBA in Illinois?

If you do business under a name that isn’t your legal name, register it as an assumed name (DBA) with the county (checked Oct 24, 2026) Sole proprietors and general partnerships file with their county clerk and the fee is set by each county (Cook County charges $50). LLCs and corporations register assumed names with the Secretary of State instead..

How to file a DBA

Does Illinois require an annual report?

Yes. The fee is $75 (checked Oct 24, 2026). Within the 60 days before the first day of the anniversary month (the month the LLC was formed), every year starting the year after formation.

Initial report: No.

Does Illinois have a franchise or privilege tax?

Corporations (not LLCs) owe an Illinois franchise tax of 0.1% (1/10 of 1%) of paid-in capital in Illinois, with a $25 minimum and a $2,000,000 maximum per year (805 ILCS 5/15.45). An initial franchise tax is due with the first report of issued shares, and the annual franchise tax is paid with each annual report (805 ILCS 5/15.35). Since January 1, 2025, the first $10,000 of franchise tax liability is exempt under that same section, which covers the initial tax as well, so most small corporations owe none. LLCs pay no franchise tax; they pay the $75 annual report fee instead.

How do I register for state taxes in Illinois?

Register with the state revenue agency for sales tax and withholding, and open an unemployment insurance account once you hire your first employee.

Does Illinois require a general business license?

No. Illinois doesn’t issue one general business license; what you need depends on your activity and where you operate.

Illinois has no general statewide business license; the Department of Commerce says licensing depends on your industry, location and activities, and some professions are licensed by the Department of Financial and Professional Regulation. The First Stop Business Information Center (800-252-2923, BIC@Illinois.gov) helps identify required licenses and permits. Businesses that sell goods, hire employees or owe other state taxes register with the Department of Revenue (Form REG-1, online through MyTax Illinois, about 1 to 2 business days) to get a Certificate of Registration, and there is no registration fee. No statewide local lookup found.

What local licenses will I need in Illinois?

Cities and counties set their own licenses, zoning and permits. Call your city or county clerk with your business type and address before you open.

Chicago (city)
Most business activities need a city business license from the Department of Business Affairs and Consumer Protection, applied for online through Chicago Business Direct or in person at the Small Business Center. The page lists no fees.

When do I need workers’ comp in Illinois?

1 or more employees (including part-time).

Coverage starts on the first day of work. Sole proprietors, partners, corporate officers and LLC members may opt out of coverage for themselves. Construction, trucking and other extra-hazardous businesses must carry coverage regardless of owner status. Family employees must be covered, except bona fide corporate officers and some small farms (under 400 working days of labor per quarter). Knowingly failing to insure can bring fines of up to $500 a day ($10,000 minimum), work-stop orders and criminal charges.

What else should I know about starting a business in Illinois?

LLC filing is $150 ($400 for an LLC that can form series). Corporations pay $150 to file and a $75 annual report fee plus franchise tax. Annual reports for both are due in the 60 days before the anniversary month; a late LLC report brings a $100 penalty plus $100 for each year from the second year of delinquency. LLCs register assumed names with the Secretary of State: the fee depends on the year (in 2026, $120; $150 in years ending in 0 or 5, falling to $30 in years ending in 4 or 9), the name runs until the anniversary month in the next year divisible by 5, and renewal is $150 for 5 years. Sole proprietors and general partnerships file an assumed business name certificate with their county clerk and must publish notice in a county newspaper once a week for three weeks, starting within 15 days of filing, with proof filed within 50 days or the registration is void.

What to double-check for Illinois?

A few details below aren't spelled out on the state's own pages. Confirm them on the official page before you file.

Note State law (805 ILCS 180/50-50) makes expedited service optional, but some sources say the online system charges it, which would make an online LLC filing $250 instead of $150. https://www.ilsos.gov/departments/business_services/home.html
Note The law exempts the first $10,000 of franchise tax liability, so most small corporations should owe none.
Note Sole proprietors filing an assumed business name with their county must publish notice for three weeks.
Note County assumed business name fees are set by each county (Cook County charges $50); check with your county clerk.

What to do next

Want help setting up in Illinois? Contact us

Another state

Sources

Official pages checked on October 24, 2026.