Small Businesses are the Backbone of our Economy…
Illinois’ small businesses are the key to our state’s well-being. According to the Small Business Administration, there are 1.1 million small businesses in the state and about half of Illinois employees
work at small to mid-sized businesses.
Illinois businesses that operate as LLCs pay among the highest fees in the nation
Illinois presently has among the highest limited liability company (LLC) fees in the nation. When it comes
to initially filing as an LLC, our state’s fee is unreasonably excessive and the highest in the country. While
the average cost of filing an LLC in other states is less than $200, in Illinois, the fee for filing as an LLC is
$500. The costs associated with forming an Illinois LLC are also much higher than those charged to
corporations. It costs only $150 to form an Illinois corporation as opposed to $500 for an LLC. Forming as an LLC is the right choice for many small businesses. Unfortunately, far too many business owners do not form LLCs because excessive fees prompt them to form as corporations or to simply file in other states. Illinois’ excessive LLC fees also perpetuate the perception that our state is an unfriendly place to own or launch a small business.
Let’s push lower LLC filing fees over the finish line
For the past year, our coalition of business and trade organizations have worked hard to substantially reduce the fees associated with filing and operating an LLC in Illinois. In this year’s State of the State address, Governor Quinn proposed reducing the fee for filing as an LLC from $500 to $39 and for series LLCs from $750 to $59. Two bills have been filed consistent with the Governor’s recommendation:
HB 4361 and SB 2776. These bills have received bi-partisan support.
Significantly lowering LLC filing fees will encourage new businesses to form in Illinois, improve the perception of Illinois’ small business climate, and continue to build momentum on this issue. We ask our state lawmakers to co-sponsor HB 4361 and SB 2776 and help entrepreneurs and small businesses best
served by operating as LLCs.
Together, we can get this legislation passed and signed into law this year! For more information or to join
our Coalition, contact Blanca Campos at Blanca@sbacil.org.