Formation / States / Illinois

Start a Business in Illinois

Illinois is the fifth-largest state economy in the US, anchored by Chicago's diverse business ecosystem spanning finance, technology, manufacturing, and professional services. With over 1.3 million small businesses, Illinois offers founders access to major markets, talent pools, and transportation infrastructure.

Filing Fees

Entity TypeFiling Fee
LLC$150
Corporation$150
Nonprofit$50
DBA / Trade Name$0
Annual Report$75

Illinois eliminated its franchise tax effective 2026

Processing Times

  • Standard: 5-10 business days
  • Expedited: 1 business day ($100 fee)
  • Online: Available via CyberDriveIllinois

Key Facts

  • Franchise tax eliminated in 2024 — significant cost savings for businesses
  • Flat income tax rate of 4.95% for individuals, 7% for corporations
  • Annual report due before the first day of the anniversary month
  • Operating agreement not required by law but recommended
  • Publication requirement eliminated for LLCs (previously required in Cook County)

Compliance Deadlines

ItemDuePenalty
Annual ReportBefore anniversary month$100 late penalty; administrative dissolution
State Tax ReturnApril 15 (follows federal)Penalties and interest
Registered AgentMaintain continuouslyAdministrative dissolution

Official Resources

  • Illinois SOS: LLC Information
  • Illinois SOS: Corporation Information
  • Illinois Dept of Revenue: Business Taxes
  • IRS: Apply for EIN Online
  • SBA Illinois District Office (Chicago)

Related Guides

  • LLC Formation Guide
  • Small Business Tax Guide
  • Business Compliance Guide
  • Operating Agreement Guide
  • Formation Cost Breakdown
Lovie Formation Pricing Resources Site Directory About Contact Tools