The cost to form an LLC for a Chicago business starts with the $150 Illinois filing fee. Add annual fees, a registered agent, and local Chicago business taxes below.
Last updated: May 2026 · Data: MIT Living Wage Calculator, C2ER, U.S. Census, BLS, IRS, state and city sources
Illinois charges a $150 filing fee to form an LLC and a $75 annual report each year. Illinois has a constitutionally mandated flat income tax rate, currently set at 4.95%. A 2020 ballot measure to allow graduated rates was rejected by voters. The state also does not tax retirement income.
| Cost Item | Amount | When Due |
|---|---|---|
| Illinois Filing Fee | $150 | One-time at formation |
| Annual report | $75 | Annually |
| Registered Agent Service | $49 to $300/year | Annually |
| Local Chicago Business License / Tax | Varies by industry | Annually |
| Operating Agreement | $0 to $500 | One-time (recommended) |
| EIN (Federal Tax ID) | Free | One-time (IRS.gov) |
Chicago does not impose a local business income tax, but it requires a business license and levies several specialized taxes (such as the personal property lease transaction tax and the amusement tax) depending on your activity. Plan also for the Illinois LLC filing and $75 annual report fees.
Chicago is the third-largest city in the United States and the economic capital of the Midwest, a global hub for derivatives and futures trading (CME and Cboe), corporate headquarters, rail and air transportation through O'Hare, manufacturing, healthcare, and a fast-growing technology sector.
| Local Metric | Chicago (2026 estimate) |
|---|---|
| Metro population | 2.7 million |
| County / jurisdiction | Cook County |
| Cost of living index (US avg = 100) | 116 |
| MIT living wage, single adult | $22.00/hour |
| MIT living wage, one earner supporting a family of four | $43.00/hour |
| Applicable minimum wage | $16.60/hour |
| Average rent, 1-bedroom | $1,900/month |
| Average rent, 2-bedroom | $2,350/month |
| Median home price | $360,000 |
| Median household income | $71,000/year |
| Combined sales tax rate | 10.25% |
| Effective property tax rate | 1.75% of value/year |
Local figures are 2026 estimates compiled from the MIT Living Wage Calculator, the C2ER Cost of Living Index, U.S. Census and Zillow housing data, and city and county sources. Verify current figures before relying on them.
The LLC filing fee is set by Illinois at $150, since LLCs are formed at the state level. Add the $75 annual report (each year), a registered agent (about $49 to $300/year), and any local Chicago business license or tax. Chicago does not impose a local business income tax, but it requires a business license and levies several specialized taxes (such as the personal property lease transaction tax and the amusement tax) depending on your activity. Plan also for the Illinois LLC filing and $75 annual report fees.
Chicago does not impose a local business income tax, but it requires a business license and levies several specialized taxes (such as the personal property lease transaction tax and the amusement tax) depending on your activity. Plan also for the Illinois LLC filing and $75 annual report fees.
Plan for the $75 annual report, registered agent renewal (about $49/year), and any local Chicago business license or tax. The calculator above totals these for you.
LLCs are registered with the Illinois Department of Revenue at the state level, not the city. You then comply with local Chicago requirements such as a business license, zoning, and any city business tax. There is no separate city-level LLC filing.
If your business actually operates in Chicago, forming in Illinois is usually simplest. Forming in Delaware or Wyoming while operating in Chicago typically forces you to register as a foreign LLC in Illinois anyway, paying fees in both states.