How to Start an LLC in Illinois (2026)

Full transcript

0:00 The short answer

Dan To start an LLC in Illinois, you file Articles of Organization, Form LLC-5.5, with the Illinois Secretary of State and pay the $150 filing fee.

Maya A hundred and fifty. That's higher than a lot of states.

Dan It is, and the yearly report adds $75 more. We'll get to that.

Maya This is The Business Formation Podcast. Today, Illinois for 2026, in six steps, with what it all costs and the three best ways to have it filed for you. First, the name.

0:34 Step 1: Choose a name

Dan An Illinois LLC name has to include limited liability company, LLC, or L.L.C., and be distinguishable on the Secretary of State's records.

Maya Anything I can't put in it?

Dan Yes. Words like corporation, inc, ltd, and co aren't allowed, and neither are limited partnership or L.P.

Maya So an LLC can't call itself Smith Company.

Dan Not with "co" in the name, no. Drop that word and you're fine.

Maya How do I see what's taken?

Dan The Secretary of State has a free business entity search. And you can reserve a name for 90 days for $25.

1:16 Step 2: Name a registered agent

Maya Registered agent next. What are Illinois's rules?

Dan Your agent has to be an Illinois resident, or a business authorized in Illinois, at an Illinois street address. You list it right on your Articles.

Maya Is a P.O. box okay?

Dan Not by itself. And your LLC can't serve as its own agent.

Maya So who does it?

Dan You, if you live in Illinois, or a commercial agent. Remember that the agent's name and address go on the public record, which is a big reason many owners hire one.

Maya And switching later?

Dan That costs $25.

1:51 Step 3: File Articles of Organization

Maya Okay, the main event.

Dan You submit Form LLC-5.5 to the Secretary of State, online or by mail, and pay $150. By mail, it goes in duplicate.

Maya What's on the form?

Dan The name, a principal address, your registered agent, the purpose, and the names and addresses of any managers, or of members who have management authority.

Maya I'm Maya, by the way, here with Dan.

Dan Great to be here with you, Maya.

Maya How fast is it?

Dan Standard online filings take about 10 business days.

Maya And if I can't wait?

Dan Twenty-four hour service costs $100 more, so $250 in all.

Maya That's a big jump.

Dan It is, so decide whether the speed is worth it for you.

Maya What does the form let me choose about management?

Dan You list the managers, or the members who have management authority. That's a decision to make before you file, not after.

2:45 Step 4: Write an operating agreement

Maya Do I file the operating agreement with the state?

Dan No. Keep it with your records. There's no state fee for it.

Maya But do I need one?

Dan Illinois law counts agreements that are oral, written, or even implied. That's exactly why putting yours on paper helps.

Maya What goes in it?

Dan Who owns what, how profits are split, who makes decisions, and what happens if a member leaves.

Maya Even with just me?

Dan Even with just you. A one-page agreement still beats an argument about what was implied.

3:17 Step 5: Get a free EIN

Maya What about the tax ID?

Dan Apply free with the IRS at IRS.gov, after the Secretary of State has filed your Articles.

Maya How quick?

Dan If the online application is approved, the number is issued right away. Have the Social Security number or ITIN of the person in charge ready.

Maya And the ownership report?

Dan U.S. companies can skip it. FinCEN no longer requires it.

3:40 Step 6: File the annual report ($75)

Maya What does Illinois want every year?

Dan An annual report with the Secretary of State, filed before the first day of your LLC's anniversary month. The fee is $75.

Maya So if I formed in June, I file before June 1.

Dan Right, every year.

Maya Who files it, the agent?

Dan Not automatically. The LLC files it, so unless a service does it for you, it's on you.

Maya And the penalty for forgetting?

Dan If it's still missing two months later, there's a $100 penalty, plus $100 more for each extra year it stays missing.

Maya Does it end there?

Dan No. After a notice, an LLC that doesn't catch up within 120 days is dissolved.

Maya So a $75 report becomes a real problem.

Dan It can, which is why an anniversary-month reminder matters.

4:32 What it costs

Maya What's the state bill if I do it all?

Dan $150 to form, then $75 a year for the annual report. The EIN is free.

Maya And the optional costs?

Dan A 90-day name reservation is $25. Twenty-four hour service is an extra $100. Changing agents is $25.

Maya So a fast, reserved, first-year LLC could cost how much?

Dan $150 plus $25 plus $100 is $275, before the annual report.

Maya Good to see the math.

Dan The basic path is $150, though. Everything else is a choice.

Maya And the choice that matters most?

Dan Whether to pay for speed. Standard online filing is about 10 business days, and many founders can wait.

5:26 A year-one checklist

Maya Give me an order of operations.

Dan Search and choose the name. Line up an Illinois agent. File Form LLC-5.5. Write the operating agreement. Get your EIN.

Maya And then?

Dan Find your anniversary month and set a reminder a month before it.

Maya When does the first report come due?

Dan Before the first day of the anniversary month of your LLC, which is when you formed. Put it on the calendar now.

5:53 The 3 best ways to file in Illinois

Maya What if I'd rather have someone else do it?

Dan Here are the three best ways to file in Illinois. Number one, our pick, is Mainstay Filing, $199 a year plus the state fee. With the $150 state fee, checkout comes to $349.

Maya What's included?

Dan Your Form LLC-5.5 filed, your EIN application, and your registered agent every year. It renews at the same $199. And in Illinois, it prepares and files your annual report before your anniversary month.

Maya And what's my cost for the report?

Dan Just the $75 state fee.

Maya Number two?

Dan IL Registered Agent.org. It prepares and files your Articles for $199 plus the state fee, with a free first year of registered agent service, then $99 a year.

Maya Three?

Dan Illinois Registered Agent.co. The same offer: $199 plus the state fee, a free first year of agent service, then $99 a year.

Maya How should I choose?

Dan If you'll file your own annual report, two and three cost less from year two, at $99 for the agent alone. If you want the agent and the report taken care of at one steady price, that's Mainstay. The $75 fee is the same either way.

7:14 Three years of service fees

Maya Three-year numbers?

Dan Mainstay is $199 a year, so $597. The other two are $199 in year one, then $99 and $99, for $397.

Maya A $200 difference.

Dan Yes. And in Illinois, that difference includes someone else watching the anniversary-month deadline.

7:40 Recap

Maya Give us the whole path one more time.

Dan Choose a name with LLC in it, name an agent at an Illinois street address, file Form LLC-5.5 for $150, write an operating agreement, get your free EIN, and file your $75 annual report before your anniversary month every year.

Maya The links to all three services and every official source are in the show notes. Thanks for listening to The Business Formation Podcast, and good luck with your new Illinois LLC.