You might be wondering how much it will cost to form an LLC if you want to launch a business in Illinois. A common business structure that offers owners liability protection and tax flexibility is an LLC, or limited liability company. In comparison to other states, Illinois has one of the lowest formation costs for LLCs.
In Illinois, there is a $150 filing cost establishing an LLC. When you submit your articles of organization—the legal document that establishes your limited liability company—with the Illinois secretary of state, you must pay this charge. Articles of Organization can be submitted online or by mail, and the procedure typically takes 5 to 10 working days.
It’s possible that there will be additional expenses when incorporating an LLC in Illinois in addition to the filing charge. Depending on your area and industry, you might be required to obtain a company license or permission from your local government, which can cost anywhere between $50 and $500. The cost of a registered agent, who will accept legal paperwork on your behalf, can range from $100 to $300 each year.
Once your LLC is established, you must submit an annual report to the Illinois Secretary of State. An Annual Report can be filed for $75. The report validates that your LLC is still active and in good standing with the state and includes basic information about your company, such as your name and address.
In conclusion, the filing charge for an LLC in Illinois is $150. There may also be additional fees for company licenses, registered agents, and other costs. Additionally, you must spend $75 yearly to file your annual report.
What five major subjects are covered in an annual business report?
1. Business Name and Address: The report must include the legal name and address of your LLC.
3. Members/Managers: Your LLC’s members or managers must be mentioned, along with their names and addresses.
5. Financial Information: You must disclose the financial details of your LLC, including its assets and liabilities.
If you fail to submit your annual report, the state may administratively dissolve your LLC. As a result, your LLC will be unable to operate and you will no longer be protected from responsibility. You must submit a reinstatement form and pay a reinstatement fee in order to reactivate your LLC, which can be expensive and time-consuming.
No, not all organizations are required to produce annual reports. To ensure that they are still operational and in good standing with the state, the majority of states demand that corporations and LLCs submit an Annual Report every year.
Yes, tax obligations apply to LLCs in Illinois. However, how an LLC is constituted affects how it is taxed. An LLC is taxed by default as a pass-through entity, which means that the owners receive a share of the company’s profits and losses and must disclose them on their individual tax returns. However, LLCs have the option to elect to be taxed like corporations if they so desire.