In excellent news for Illinois small businesses, the Governor recently signed into law SB 867 significantly reducing fees on limited liability companies (LLCs). This brings Illinois’s LLC fees more in line with national and midwestern standards.
Although not all businesses form as LLCs, doing so is often the optimal choice because LLCs combine the limited-liability aspect of a corporation, with the tax and operational advantages of a partnership. LLCs are often appropriate both for small businesses and for the strategic creation of more complicated business structures.
The fee reductions are dramatic. The cost to file articles of organization has been reduced to $150 from $500; for articles of amendment, the fee is now $50, down from $150. Reserving a name now costs a mere $25 instead of $300. The fee for an annual report is now $75—far less than the previous $250. The law also includes several other cuts to other LLC fees. The new law should allow businesses much greater flexibility.
This law is a significant change for Illinois’s approach to business organizations. If you have any questions or would like to know more about business formation, please contact a Lewis Rice attorney.