United States

Company Formation in Illinois

State of Illinois — Secretary of State (Department of Business Services)

Formation Time

2–4 business days

Min. Capital

No minimum

Corporate Tax

7.0% state corporate tax + 2.5% Personal Property Replacement Tax (9.5% combined)

Foreign Ownership

100%

Overview

Illinois is the economic engine of the American Midwest and the fifth-largest state economy in the US ($1.1 trillion GDP). Chicago is the nation's second financial capital, world center for commodities and derivatives trading (CME Group, CBOE), and a primary global corporate headquarters hub hosting Boeing, McDonald's, United Airlines, Abbott Laboratories, and Archer Daniels Midland. Illinois recently modernized its corporate law by eliminating the punitive corporate franchise tax and slashing the LLC annual report fee from $250 to just $75. Chicago's central geographical position, O'Hare International Airport (connecting to all major global financial capitals), and mature professional infrastructure make Illinois the preeminent choice for commodities trading, agtech, manufacturing, logistics, and Midwestern market penetration.

Chicago trading capital

5th largest US GDP

$75 annual report fee

CME & CBOE hub

Series LLC available

Why Choose Illinois

Chicago is the world's derivatives and commodities trading capital (CME Group, CBOE)

5th largest state economy in the US ($1.1 trillion GDP) anchoring the Midwest region

Corporate franchise tax repealed and LLC annual report fee reduced to just $75

Chicago O'Hare is one of the world's most connected international aviation hubs

Fortune 500 headquarters hub (McDonald's, Abbott, United Airlines, Caterpillar)

Series LLC structure authorized by statute for asset protection and real estate

World-class universities (University of Chicago, Northwestern) producing top quantitative and engineering talent

Deep commercial and mercantile banking ecosystem with global trade facilities

Business Entity Types

Entity	Ownership	Directors	Capital	Tax	Best For
LLC	100%	N/A (member or manager managed)	None	Pass-through taxation; 0% state tax for foreign non-resident owners with no US income	Commodity trading, fintech, consulting, e-commerce, real estate, manufacturing
Corporation	100%	1	None	21% federal CIT; 7.0% state corporate tax + 2.5% replacement tax (9.5% combined)	Trading firms, industrial manufacturing, logistics operators, high-growth corporations
Series LLC	100%	N/A	None	Pass-through per series	Real estate investment portfolios across the Chicago metropolitan area

Step-by-Step Formation Process

Name Availability Verification

1 day

Search Illinois Secretary of State database.

Filing Articles of Organization

2–4 business days

Submit Form LLC-5.5 electronically with Department of Business Services.

Federal EIN Registration

3–10 business days

Obtain Employer Identification Number from IRS.

FinCEN BOI Filing & Operating Agreement

1–2 days

Submit federal beneficial ownership report and adopt Operating Agreement.

Corporate Banking Setup

3–7 business days

Open US business checking accounts with major commercial banks or digital platforms.

Costs & Fees

Government / License Fee	USD 150+
Our Service Fee	USD 900 – 2,200
Annual Renewal	USD 75+

Fees are indicative and may vary based on business activity, entity type, and additional approvals required. Contact us for a precise custom quote.

Get Custom Quote

Banking

Chicago has one of the deepest banking infrastructures in the world, with major operations from Northern Trust, BMO Harris, JPMorgan Chase, and leading international trade banks.

Account Opening Time

3–7 business days

Multi-Currency

Yes — multiple currencies supported

Recommended Banks

Northern Trust (Chicago HQ)BMO Harris (Chicago HQ)JPMorgan ChaseMercuryRelay

Tax Overview

Corporate Tax

7.0% state corporate income tax + 2.5% Personal Property Replacement Tax (9.5% combined); 21% federal CIT

Personal Income Tax

4.95% flat state personal income tax

VAT / Sales Tax

6.25% state sales tax (up to 10.25% combined in Chicago)

Capital Gains Tax

Taxed as ordinary income at 4.95%

Withholding Tax

30% federal statutory (reduced by treaties)

Double Tax Treaties

68 countries

Illinois recently eliminated its corporate franchise tax. The LLC annual report fee is a low $75 due prior to the first day of the anniversary month. Non-resident owned LLCs with no Illinois-sourced income pay zero state income tax.

Frequently Asked Questions

Why is Chicago considered the financial hub of the Midwest?

Chicago hosts the Chicago Mercantile Exchange (CME Group) and Chicago Board Options Exchange (CBOE), handling trillions of dollars in daily futures, options, commodities, and derivatives volume. It also hosts Northern Trust, BMO Bank, and massive trading operations.

What is the Illinois Personal Property Replacement Tax?

The Personal Property Replacement Tax is a state tax on the net income of corporations, partnerships, and S-corporations. Regular C-Corporations pay 2.5% of net income in addition to the 7.0% regular corporate income tax, resulting in a combined state corporate tax rate of 9.5%.

Does Illinois offer a Series LLC?

Yes. Illinois is one of the few Midwestern states with a comprehensive Series LLC statute. An Illinois master LLC can create multiple individual series to isolate real estate properties or business units without paying separate state filing fees for each.

What is the annual report fee for an Illinois LLC?

Illinois reduced its LLC annual report fee to $75, making ongoing maintenance significantly more affordable than in neighboring states.

Can a foreign national form an Illinois LLC remotely?

Yes. Foreign founders can form and own 100% of an Illinois company without traveling to the United States. Incorp International provides the required registered agent and handles all state filings.

Can I open a US bank account for my Illinois entity remotely?

Yes. Incorp International facilitates remote corporate bank account opening with our partner digital banking platforms (Mercury, Relay) and traditional commercial banks.