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 Type | Filing 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
| Item | Due | Penalty |
|---|---|---|
| Annual Report | Before anniversary month | $100 late penalty; administrative dissolution |
| State Tax Return | April 15 (follows federal) | Penalties and interest |
| Registered Agent | Maintain continuously | Administrative dissolution |