State rolls back LLC fees slashing filing costs for small businesses
A new law signed by Gov. Bruce Rauner substantially reduces startup, annual filing and other fees for limited liability companies (LLCs), the organizational structure preferred by many of Illinois’ 1.2 million small businesses.
The new law will encourage more businesses to form in Illinois rather than go to other states to escape high fees. Effective today, the filing fee for new LLCs drops to $150 from $500 and annual report fees drop to $75 from $250. Previously, Illinois charged fees that were among the highest in the nation.’
“The creation of new businesses is one of our best tools to help grow both jobs and our state economy," said Sen. Chuck Weaver, a Peoria Republican who was among those sponsoring the legislation in the Senate. “This new law will help encourage our entrepreneurs to launch new businesses, which will create new opportunities for growth. This is a win for Illinois.”
With more than 98 percent of businesses in Illinois classified as small business, easing the fee burden will reduce their costs and help make Illinois more competitive with surrounding states. The new law is viewed as a step toward improving the state’s business climate and encouraging more job-creating growth and development.
Department of Commerce and Economic Opportunity Director Sean McCarthy said reducing LLC fees sends a positive signal.
“We support businesses that are looking to grow, invest and create new jobs in our state, regardless of their size,” McCarthy said. “SB 867 helps alleviate unnecessary burdens to allow Illinois businesses to thrive.”
“This bipartisan initiative is about much more than reducing some of the highest LLC fees in the nation,” agreed Small Business Advocacy Council CEO Elliot Richardson. “It is about leveling the playing field for small businesses, encouraging new businesses to form in our state, and growing our way toward economic stability.”