- Dec 28, 2017
Small businesses will soon see a dramatic decrease in the filing fees for incorporation thanks to legislation recently approved by the Illinois legislature, pending signature by Gov. Rauner. The state’s Small Business Advocacy Council was instrumental in educating the legislators about the hardship the fees cause the state’s small businesses, and helping to craft a solution.
The fees associated with filing and operating a limited liability company, or LLC, in Illinois have traditionally been among the highest in the nation. Forming as an LLC is advantageous for many small businesses as it provides the limited liability features of a corporation and the tax efficiencies and operational flexibility of a partnership. Many business, however, do not form LLCs in Illinois because of the excessive fees.
Currently the initial filing fee and annual fees in Illinois are $500 and $250 respectively. These are more than triple the cost for starting a corporation and are the second highest in the country.