Illinois business filing
Illinois Entity Taxes & $1,000,000 Franchise Tax Exemption
Illinois individual and elective pass-through entity tax is 4.95%; multi-member partnership LLCs and S-corporations pay 1.5% Personal Property Replacement Tax (PPRT). C-corporations pay 7.0% income tax plus 2.5% PPRT = 9.5%. The first $1,000,000 of corporate franchise-tax liability is exempt under 805 ILCS 5/15.35; the $75 annual report fee still applies. Taxable income, apportionment, deductions and federal rules need adviser review.
Last content review: October 28, 2026
Corp USA is not a law firm and does not provide legal advice.
- Illinois 805 ILCS 180 & 805 ILCS 5 statutory references
- $0 Markup on State Pass-Through Fees
- Physical Corporate Kits & Seals (corpusa.net)
- Live Filing Support: (386) 465-3937
What to know before you file
Corporate franchise-tax exemption
Illinois individual and elective pass-through entity tax is 4.95%; multi-member partnership LLCs and S-corporations pay 1.5% Personal Property Replacement Tax (PPRT). C-corporations pay 7.0% income tax plus 2.5% PPRT = 9.5%. The first $1,000,000 of corporate franchise-tax liability is exempt under 805 ILCS 5/15.35; the $75 annual report fee still applies. Taxable income, apportionment, deductions and federal rules need adviser review.
Official source: Illinois General Assembly — 805 ILCSPersonal Property Replacement Tax
Illinois individual and elective pass-through entity tax is 4.95%; multi-member partnership LLCs and S-corporations pay 1.5% Personal Property Replacement Tax (PPRT). C-corporations pay 7.0% income tax plus 2.5% PPRT = 9.5%. The first $1,000,000 of corporate franchise-tax liability is exempt under 805 ILCS 5/15.35; the $75 annual report fee still applies. Taxable income, apportionment, deductions and federal rules need adviser review.
Official source: Illinois state agencyReports remain annual
Illinois Annual Reports (Form LLC-50.1 under 805 ILCS 180/50-1; Form BCA 14.05 under 805 ILCS 5/14.05) are due before the first day of the anniversary month: the last day of the previous month. The window opens 60 days before that first day. $75 state + $99 service = $174; nonprofits use Form NFP 114.05 ($10 + $99 = $109). Series LLCs add $50 per active registered series. LLCs incur a $100 late penalty after 60 days; 180 days without filing triggers an administrative-dissolution warning. Reinstatement uses Form LLC-35.40 or BCA 12.45: $200 state + $299 service plus back reports and penalties.
Official source: Illinois Secretary of State — Department of Business ServicesIllinois fees & franchise tax
Illinois Anniversary-Month Annual Report & Penalties
Report due (previous month end)
September 30, 2026
60-day window opens
August 2, 2026
On-time state + $99 service
$174
LLC late penalty
$0
IL Form LLC-50.1 (LLC Annual Report) · Due before October 1, 2026. $100 late-penalty threshold: November 29, 2026. 180-day administrative-dissolution warning: March 29, 2027.
28 days overdue.
Form LLC-35.40: $200 reinstatement + $75 × 1 back report(s) + $0 modeled penalty + $299 service = $574. Additional assessed penalties may apply; this estimate does not establish actual dissolution status.
805 ILCS 180/50-1, 50-15, 35-25; 805 ILCS 5/14.05, 12.35; 805 ILCS 105/114.05. Reports follow the anniversary month, not a statewide calendar deadline.
Illinois Startup, Series LLC & 24-Hour Filing Costs
State formation fee
$150
Designations / IDFPR / expedited
$0
Corp USA service
$149
Startup total
$299
Year 2 report forecast: $75 state + $99 service = $174. Corporation franchise tax is $0 when liability does not exceed the $1,000,000 exemption. Series LLC $599 is the umbrella price before designations.
805 ILCS 180/37-40, 50-10; 805 ILCS 5/15.35. No newspaper publication for LLC formation. Shipping and applicable tax are separate.
Start Illinois filing — $299Frequently asked questions
Illinois individual and elective pass-through entity tax is 4.95%; multi-member partnership LLCs and S-corporations pay 1.5% Personal Property Replacement Tax (PPRT). C-corporations pay 7.0% income tax plus 2.5% PPRT = 9.5%. The first $1,000,000 of corporate franchise-tax liability is exempt under 805 ILCS 5/15.35; the $75 annual report fee still applies. Taxable income, apportionment, deductions and federal rules need adviser review.
Official source: Illinois Secretary of State — Department of Business ServicesNo. Check municipal licenses, MyTax Illinois registration and professional approvals before operating.
Official source: Illinois state agencyYour next chapter. In Illinois.
Corp USA is not a law firm and does not provide legal advice.