Illinois is the leading economy in the Midwest. An entrepreneur looking to set up a business in America should consider Illinois because of its well-developed transportation system, its tech and finance industries, and Chicago being one of the largest business centers in North America.
Setting up a Limited Liability Company (LLC) in Illinois makes the business operations of both U.S.-based and international founders flexible, safe, and scalable.
In this extensive guide, we cover all the steps needed to form an LLC in Illinois and how to navigate the process from out of state with the help of Bizstartz.
In a glance, here is the info you need to choose the most appealing state in America to set up and LLC.
Why Choose Illinois for Your LLC?
The value proposition of Illinois to international and U.S.-based entrepreneurs centers on the synergy of its business infrastructure, legal framework, and economic incentives for…
1. Strategic Business Location
The state welcomes a business situated in manufacturing, e-commerce, logistics, and international trade because it has six Class I freight railroads, the O’Hare International Airport, and a well-developed interstate highway system.
2. Wide Range of Talents and Capabilities
With schools like The University of Chicago, Northwestern University, and The University of Illinois, The State of Illinois boasts some of the best colleges in the country. This is coupled with a well-educated and highly skilled workforce capable of innovation and business growth acceleration.
3. Comprehensive Regulations
LLCs in Illinois benefit from one of the strongest legal frameworks in the country. The Illinois Limited Liability Company Act provides personal liability protection to business owners, separating personal assets from business debts and obligations.
4. No International Founder Restrictions
An individual does not need to be a US Citizen or have a US address to set up an LLC in the State of Illinois. Nonresidents can own and even be members of an LLC in Illinois with no need to physically live in the state.
5. Economic Benefits
These policies are aimed at small and emerging businesses, especially those located in underserved areas, focused on job creation and technological innovation.
Step-by-Step Instructions on Creating an LLC in the State of Illinois
Here’s a detailed breakdown of the process of forming an LLC in Illinois.
Step 1: Select a Name for your LLC
Your brand name is your LLC’s name. While it is your brand, your name must be compliant and appealing as well.
Requirements:
- The phrases “Limited Liability Company” or “LLC” (or “L.L.C.”) must be included.
- The name must comply with description rules and not be deceptively similar to existing registered businesses in Illinois.
- Restricted words “bank,” “insurance,” or “university” cannot be included without special permission.
How to Check Availability:
To check name availability, use the Illinois Secretary of State’s online registry.
Optional:
- By submitting Form LLC-1.15 with a $25 submission fee, a business name can be reserved for 90 days,
- Bizstartz will perform a name search, trademark search, and domain check to ensure brand consistency.
Step 2: Appoint a Registered Agent
Bizstartz offers a registered agent appointment which allows you to act on your own.
Requirements:
- The agent must reside in Illinois and have a physical street address (No P.O. Boxes)
- The agent must be present during weekday business hours (M-F).
- With the agent requirements, you can choose to be your own agent or use a registered agent service like Bizstartz.
💡 Bizstartz offers professional registered agent services for document forwarding and provides compliance reminders to U.S. and non-resident clients.
Step 3: Submit Articles of Organization (Form LLC-5.5)
The Articles of Organization is the document that you submit to the Secretary of State of Illinois to create your LLC officially
Options for Filing:
- Online: Preferable for quicker turnaround
- Mail: Complete Form LLC-5.5 and send to the Secretary of State’s office.
Information Needed:
- Name and address of the LLC
- Name and address of the registered agent
- Term of the LLC (can be perpetual)
- LLC Purpose (can be general or specific)
- LLC Management Structure (member-managed or manager-managed)
Costs and Timelines:
- Filing Cost: $150
- Standard Processing Time: 5–10 business days (expedited options available for additional cost)
💡 Bizstartz can submit your Articles of Organization and send you the approval certificate with registered documents in electronic form.
Step 4: Draft an Operating Agreement
Illinois does not legally require Operating Agreements, but it is strongly advised to define in writing the roles of each member or manager of the LLC.
What to add:
- Percent ownership of each member
- Capital contributions
- Distribution of profits, losses
- Voting roles and rights
- Decision-making frameworks
- Member addition/removal rules
- Exit or dissolution strategy
💡 With every LLC formation package, Bizstartz provides a drafted Operating Agreement that can be tailored to each business and is designed to be adjusted as needed.
Step 5: Apply for an EIN (Employer Identification Number)
An EIN or Employer Identification Number serves as a Social Security Number for your business, functioning as one for your business’s legal and operational needs. It is granted by the IRS.
Why You Need It:
- You can use it to open a U.S. business bank account.
- You can also use it to hire employees.
- To file taxes.
- To register with Stripe or Paypal as a business account.
How to Apply:
- Apply Online: For U.S. residents, the IRS has a dedicated portal for applications.
- Manual Application: For Non-U.S. residents without an SSN, applications can only be submitted through a fax or postal mail using Form SS-4.
💡 Need an SSN? Didn’t think so. However, as a non-resident, Bizstartz will still help get your EIN.
Step 6: Filing Annual Reports
An Annual report for your LLC is also a legal requirement to remain active while doing business in Illinois.
Key Details:
- Due Date: yearly anniversary of incorporation for the business.
- Fee: $75
- Late Fee: $100 after the time window has been exceeded.
You may choose to submit your reports by mail or through the online method.
💡 You no longer need to remember deadlines as Bizstartz can track them for you and ensures filings are submitted in a timely manner.
Step 7: Get Relevant Licenses and Permits for Your Business
While the state of Illinois does not have an overarching state-issued business license, it does have certain requirements that are tailored to specific activities. Depending on your:
- Local business licenses from the city or county
- Illinois Department of Revenue registration (for sales tax)
- Professional licenses for regulated occupations (e.g., legal, medical, engineering)
💡 Bizstartz conducts research on licensure for your specific business type and helps file the necessary applications.
Special Notes for International Founders
What Non-U.S. Residents Can Do:
- Full ownership of an Illinois LLC.
- Managing the LLC from any global location.
- Opening U.S. bank and payment accounts.
- Obtaining an EIN without a Social Security Number.
- Running online ventures including eCommerce, SaaS, consulting, and dropshipping.
What Non-Residents Need Help With:
- Having a registered agent and U.S. address.
- Filing for EIN without SSN.
- BOI (Beneficial Ownership Information) compliance.
- U.S. tax and IRS obligations.
💡 All of this and more is available from Bizstartz which has become a one-stop solution.
LLC Formation Cost in Illinois (2025)
| Service | Cost |
| Articles of Organization | $150 |
| Annual Report | $75 (due yearly) |
| Registered Agent | $99–$150/year |
| EIN (with SSN) | Free via IRS |
| EIN (without SSN via Bizstartz) | $75–$100 |
| Operating Agreement | Free with Bizstartz |
| BOI Report Filing | Included with Bizstartz |
Why Choose Bizstartz to Form Your Illinois LLC?
Bizstartz is tailor-made for international entrepreneurs and digital business owners looking to form LLCs in the United States, particularly in Illinois. With us, you get the following:
- Complete LLC Formation
- Illinois Registered Agent
- EIN with or without SSN
- Custom Operating Agreement
- BOI Filing (as required by FinCEN)
- U.S. Business Address + Mail Forwarding
- U.S. Bank Account Assistance
- Stripe / PayPal / Wise Integration
- License & Tax Registration Support
- Annual Report & Compliance Management
Your Final Remarks
Launching your business with an LLC in Illinois is one of the most advantageous positions to be in, and the State is one of the most competitive in the US.
Whether you open a consulting firm, dropshipping store, or a tech startup, the state of Illinois offers a strong economy, favorable legal protections, and accessibility to non-residents.
Letting us guide you from start to scale is what Bizstartz is meant to do.
Frequently Asked Questions (FAQs)
1. Can a foreigner start an LLC in Illinois?
Yes. Foreigners can fully own and operate an LLC in Illinois. There is no residency or citizenship requirement.
2. How long does it take to form an LLC in Illinois?
It typically takes 5–10 business days, but expedited options are available.
3. Do I need a U.S. address to start an LLC in Illinois?
No. You do not need an address to start an LLC in Illinois, but it is required for the business to have a registered agent in the state with a physical address. This is something that Bizstartz can assist with.
4. What taxes does an Illinois LLC have to pay?
The following taxes and fees may apply to Illinois LLCs:
- Federal income tax.
- Illinois replacement tax of 1.5% of net income.
- State sales tax for product sales.
- Employment taxes for hiring U.S. personnel.
5. What is the BOI report, and is it mandatory?
Yes. All LLCs are required to file a BOI report starting 2024, submitting it to FinCEN. This is part of the services that Bizstartz offers during business formation.
