Is Illinois a Good State for an LLC?
Illinois is a reasonable choice if you operate in the state or need Midwest presence. The $150 filing fee is moderate, standard processing takes 10 business days, and single-member LLCs with foreign ownership are permitted. However, you must maintain a registered agent with an Illinois address and file a $120 DBA if operating under a different name. Compare Illinois against your actual business location and operational needs before deciding.
Formation Costs & Speed
Illinois charges $150 for standard LLC formation through the Secretary of State under 805 ILCS 180/5-5. Online filing is available at https://apps.ilsos.gov/llcarticles/index.jsp. Standard processing takes approximately 10 business days. Expedited 24-hour service costs an additional $100. Name reservation costs $25 for 90 days.
If you operate under an assumed name, add a $120 DBA filing fee with the Secretary of State. Total startup cost for basic formation with name protection: approximately $295.
Key Requirements
Your Articles of Organization must include your LLC name with a required designator (LLC, Limited Liability Company, or L.L.C.), principal place of business address, registered agent name and Illinois office address, and organizer information (805 ILCS 180/5-40).
Naming restrictions (805 ILCS 180/1-10) prohibit words like Corporation, Bank, Insurance, and Trust. Your name must be distinguishable from existing entities on file.
You need at least one organizer (age 18+), who can be an individual or business entity. Foreign owners are permitted. Single-member LLCs are allowed.
Registered Agent Requirement
Illinois mandates a registered agent with a physical Illinois office address. This requirement adds ongoing costs if you lack local presence. Out-of-state owners typically hire a registered agent service ($100–$300 annually).
DBA Filing
If you operate under a name different from your LLC's legal name, file an assumed name (DBA) with the Illinois Secretary of State for $120. This is mandatory, not optional.
Bottom Line
Illinois suits businesses already operating in the state or requiring Illinois nexus. The $150 filing fee and 10-day processing are competitive. However, the registered agent mandate and DBA requirement increase compliance costs for remote owners. For pure formation flexibility and lower ongoing costs, Delaware or Wyoming may be preferable.
Contact Information:
- Phone: (217) 524-8008
- Address: 501 S. Second St., Rm. 350, Springfield, IL 62756
- Business search: https://apps.ilsos.gov/businessentitysearch/
This is general information, not legal advice.