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Illinois Slashes LLC Fees To Encourage New Businesses

Jenna Dooley / WNIJ

Effective immediately, the fees for a popular form of small business in Illinois are significantly lower.

Gov. Bruce Rauner signed legislation Wednesday that substantially reduces startup, annual filing and other fees for limited liability companies (LLCs).

The filing fee for new LLCs drops from $500 to $150 and annual report fees drop from $250 to $75. Previously, the Illinois fees were among the highest in the nation, according to the governor’s office.

“This is a clear win for business in Illinois,” Rauner said as he signed the legislation into law.

Department of Commerce and Economic Opportunity Director Sean McCarthy said that reducing LLC fees sends a positive signal.

“We support businesses that are looking to grow, invest and create new jobs in our state, regardless of their size,” he said. “SB 867 helps alleviate unnecessary burdens to allow Illinois businesses to thrive.”

State legislators also hailed the action.

“As a small business owner myself, I know the challenges small businesses face to compete and grow,” said state Rep. Carol Sente, D-Vernon Hills, primary House sponsor of the bill. “Organizing and paying filing and renewal fees shouldn’t be so costly here, and now they won’t be.”

State Sen. Tom Cullerton, D-Villa Park, was chief co-sponsor in the Senate.

“This new law displays our state’s commitment to stimulating and revitalizing Illinois’ economy,” he said. “Cutting startup fees will help new businesses get off the ground and set up roots here in Illinois. Encouraging economic development in our state will help create new jobs, increase the tax base and grow our economy.”

Some of the LLC fee changes resulting from SB867 are:

  • LLC Filing Fee: Cut from $500 to $150
  • Reinstatement: Cut from $500 to $200
  • Reserved Name Application: Cut from $300 to $25
  • Annual Report: Cut from $250 to $75
  • Amendments: Cut from $150 to $50
  • Name Transfer: Cut from $100 to $25