ILLINOIS REDUCES LLC FILING FEES
Effective December 20, 2017, the State of Illinois reduced many of its limited liability company (LLC) filing fees:
https://www.illinois.gov/dceo/Media/PressReleases/Pages/PR20171220.aspx
Per the press release, the reduction in fees was made to “encourage more businesses to form in Illinois rather than go to other states to escape high fees.”
Here is comparison of the old fees to the new fees:
| Old fee: | New fee: | |
| Articles of Organization | $500 | $150 |
| Application for Admission | $500 | $150 |
| Restated Articles of Organization | $500 | $150 |
| Articles of Organization-Series | $750 | $400 |
| Application for Admission-Series | $750 | $400 |
| Articles of Amendment | $150 | $50 |
| Amended Application for Admission | $150 | $50 |
| Application for Withdrawal – Domestic | $25 | $5 |
| Name Reservation | $300 | $25 |
| Cancel Name Reservation | $100 | $5 |
| Transfer Name Reservation | $100 | $25 |
| Name Registration Application | $300 | $50 |
| Registered Name Renewal | $100 | $50 |
| Assumed Name – Change | $100 | $25 |
| Assumed Name – Cancel | $100 | $5 |
| Annual Report | $250 | $75 |
| Reinstatement Application | $500 | $200 |
| Petition for Refund | $15 | $5 |
| Statement of Termination | $25 | $5 |
| Application for Withdrawal – Foreign | $100 | $5 |
| Any Other Document | $100 | $5 |
The most significant fee reduction for LLC owners is the reduction of the Annual Report filing fee from $250 to $75. This fee must be paid by every LLC each year for the LLC to remain in good standing. The Annual Report is due each on the first day of the LLC’s formation anniversary month. By example, if the LLC was formed on April 16th, the Annual Report would be due on April 1st of each year. If the Annual Report is not filed, the LLC will be placed in not good standing and will eventually be involuntarily dissolved.
Often, business owners will need to decide whether to form a LLC in their home state of Illinois or another state with pro-business laws, such as Delaware. The new Illinois LLC fees are competitive with the Delaware LLC Fees:
| Illinois | Delaware | |
| Formation | $150 | $90 |
| Annual Fee | $75 | $300 |
There are several other considerations into whether to organize an LLC in Delaware or Illinois. If the LLC is transacting business in the State of Illinois, it would be required to file an Application for Authority to Transact Business in Illinois and file an Annual Report with the Illinois Secretary of State.. Additionally, if the LLC is formed in Delaware, it would be required to have a registered agent in the State of Delaware, which can cost between $50 and $400 per year.
Please contact Linnemeyer Law, LLC if you would like to form an LLC or if you have questions about where your LLC should be formed.