Form your company in Illinois

Why form an LLC in Illinois?

Form in Illinois when your operations, customers or property are physically in Illinois. For a remote or non-US founder with no Illinois nexus, the $150 filing plus a recurring $75 annual report makes Wyoming or New Mexico a cheaper, simpler choice.

A quick reminder from us: forming in a state where you do not actually operate usually means you still have to register (foreign-qualify) in your home state, often with little or no tax benefit. If you are unsure, tell us how you plan to operate and we will recommend the right fit — free.

Costs and fees

The Illinois Secretary of State charges roughly $150 to file Articles of Organization, with an ongoing state cost of about $75/yr report. Flat 4.95% personal/pass-through income tax; LLCs are not subject to the corporate franchise tax that applies to Illinois corporations. State fees are paid directly to the state and are separate from our service fee.

• Filing fee: $150 (approximate)
• Ongoing state cost: $75/yr report
• Typical processing time: 1–2 days online

Taxes and privacy

Personal state income tax in Illinois: Yes. Owner privacy on the public record is generally rated low.

Your federal tax obligations (and your EIN) are the same regardless of the state you choose — a single-member LLC is taxed as a pass-through by default, and we can obtain your EIN even if you do not have an SSN.

Pros of forming in Illinois

• Straightforward online filing with 24-hour turnaround
• LLCs are exempt from the Illinois corporate franchise tax (which applies only to corporations and is being phased out)
• Large, established market and clear rules for businesses genuinely operating in-state
• Flat state income tax rate — no graduated brackets

Things to weigh

• Higher-than-average $150 formation fee and a recurring $75 annual report
• Illinois imposes a 4.95% flat income tax on business income earned here
• Member/manager information is part of the public filing — low owner privacy
• No cost or privacy edge for a founder who does not operate in Illinois

Banking for your Illinois LLC

Your formation state does not limit where you can open a US business bank account — an Illinois LLC can use banks or fintechs (Mercury, Wise, Relay) nationwide. Expect standard beneficial-owner KYC everywhere.

Whichever state you choose, we prepare the documents banks ask for and can obtain your EIN even without an SSN. Bank and provider approval is always their decision — we are not affiliated with any bank.

Is Illinois right for you?

Best for: Businesses actually operating in Illinois. If you operate physically in Illinois, forming here keeps things simple. If you are a remote or non-US founder without a specific reason to choose Illinois, a low-cost, privacy-friendly state like Wyoming or New Mexico is often the better default.

Not sure? Start your application and we will confirm the best state for your situation before anything is filed.