Illinois vs New Jersey LLC Comparison (2026)
This comparison focuses on the state-specific differences that most often change an LLC formation decision: upfront filing cost, annual compliance, state tax posture, foreign qualification cost, and special features such as series-LLC rules, publication rules, and privacy posture.
Quick Comparison
| Factor | Illinois | New Jersey |
|---|---|---|
| LLC filing fee | $150.00 | $125.00 |
| Annual filing | Annual Report ($75.00) | Annual Report ($75.00) |
| State income tax | Illinois taxes individual income at 4.95%. Partnerships and S corporations generally do not pay Illinois income tax, but they generally owe 1.5% replacement tax on Illinois-taxable income. C corporations generally pay 7% Illinois income tax plus replacement tax. | New Jersey imposes graduated Gross Income Tax rates, with the top resident rate currently 10.75%. LLC income taxed on a pass-through basis is generally reported by the owners, and New Jersey withholding or composite-style obligations may apply for some nonresident owners. |
| Foreign LLC fee | $150.00 | $125.00 |
| Series LLCs | Yes | No |
| Anonymous LLC posture | Not a practical anonymous-LLC state | Not a practical anonymous-LLC state |
| Publication requirement | No | No |
Formation Cost and Filing Process
Illinois currently charges $150.00 for its LLC formation filing, while New Jersey charges $125.00. Filing-fee differences matter, but they should be weighed against annual compliance cost and whether the state actually fits where the business will operate.
Annual Compliance and Maintenance
Illinois uses Annual Report requirements with a current filing fee of $75.00 and due-date rule of File before the first day of the LLC's anniversary month each year.. New Jersey uses Annual Report requirements with a current filing fee of $75.00 and due-date rule of File by the last day of the anniversary month each year.. For many owners, annual maintenance cost and deadline risk matter more than the one-time formation fee.
Tax Differences
Illinois tax treatment: Illinois taxes individual income at 4.95%. Partnerships and S corporations generally do not pay Illinois income tax, but they generally owe 1.5% replacement tax on Illinois-taxable income. C corporations generally pay 7% Illinois income tax plus replacement tax.; New Jersey tax treatment: New Jersey imposes graduated Gross Income Tax rates, with the top resident rate currently 10.75%. LLC income taxed on a pass-through basis is generally reported by the owners, and New Jersey withholding or composite-style obligations may apply for some nonresident owners.. If one state has no income tax or a materially different recurring entity-level tax burden, that can change the long-term economics of the LLC even when the formation fee looks lower elsewhere.
Special Features and Privacy
Illinois series-LLC availability: yes. New Jersey series-LLC availability: no. Publication requirement differences and anonymous-LLC posture also matter when owners care about speed, privacy, or ongoing administrative burden.
Which State Usually Fits Better
Illinois is usually stronger when its filing cost, annual compliance structure, and special-feature mix align with your actual operating plan. New Jersey is stronger when its recurring obligations, privacy posture, or tax environment are a better fit. If you are actually operating in one state and only considering another for formation, factor in foreign qualification and local nexus rather than comparing headline filing fees alone.
Bottom Line
The better LLC state between Illinois and New Jersey depends less on marketing claims and more on the practical tradeoffs above: formation cost, annual maintenance, tax exposure, special features, and where the business will really operate. Before choosing, verify the current filing-office rules and foreign-qualification consequences for your specific facts.