Illinois works well if your customers, suppliers, or a future physical presence are tied to that state. This guide walks you through the costs, the yearly upkeep, and how PowerLaunch handles the filing for you from anywhere in the world.
Who Illinois suits
Illinois makes sense if you have a real reason to be there. That could be a client base in Chicago, a supplier relationship, or plans to eventually hire locally. If none of that applies to you, Illinois is not a bad choice, but it is not usually the cheapest or simplest one either. Founders with no US ties often do better in a state built for out of state owners. We cover that comparison further down.
Illinois LLC filing fees sit at $150, and the same $150 applies if you choose a C-Corporation instead. Processing typically takes 1 to 2 weeks, which is in the normal range for most states. It is slower than the 1 to 3 business day turnaround you get in states like Wyoming, Kentucky, or Colorado, so build that extra time into your plans if you need a bank account or a contract signed quickly.
What it costs in year one
Your year one cost is your PowerLaunch plan price plus the Illinois filing fee of $150. That fee goes straight to the state and PowerLaunch does not mark it up.
| Plan | Plan price | Illinois filing fee | Year one total |
|---|---|---|---|
| Launch | $295 | $150 | $445 |
| Run | $1,995 | $150 | $2,145 |
| Scale | $2,995/yr or $329/mo | $150 | $3,145/yr |
If you need your EIN faster than the standard timeline, the expedited EIN add-on is $295 on Launch and Run, and it comes included on Scale.
What it costs after year one
Illinois requires an annual report to keep your LLC in good standing, and the associated yearly state cost is $75. That is separate from your PowerLaunch subscription, which renews annually as well. So from year two onward, expect your plan renewal plus that $75 to the state. This is on the lower end for annual state costs compared to some other states, which is one point in Illinois' favor if you do have a real reason to be based there.
Registered agent and annual report
Every Illinois LLC needs a registered agent with a physical address in the state. This is a legal requirement, not optional, and it is how the state and any courts reach your business. PowerLaunch includes registered agent service on every plan, so this is handled from day one and renews with your subscription.
The annual report itself is a short filing that keeps your business address and agent information current with the state. Missing it can put your LLC out of good standing, which causes problems later if you try to open a bank account or sign a contract. On the Run and Scale plans, PowerLaunch handles this annual report filing for you. On Launch, you are responsible for filing it yourself, so mark the date and check Illinois' site for the exact deadline that applies to your entity.
State income tax, in general terms
Illinois taxes business income at the state level, and the details depend on your entity type, how you are taxed federally, and whether you have income sourced to Illinois. A single-member LLC owned by a non-resident with no US-sourced income and no physical presence in the state will have a different position than one that runs operations, employees, or property there. Because this varies by situation and Illinois' rules can change, check the state's site or talk to your tax professional about how it applies to you specifically. This is exactly the kind of question the licensed tax professional consultation on the Run and Scale plans is built for.
Federal filings that apply regardless of state
Separate from anything Illinois requires, if you are a non-US owner of a single-member LLC, the IRS requires Form 5472 along with a pro forma 1120, due by 15 April each year. This applies no matter which state you form in. Under the current 2026 interim FinCEN rule, US-formed companies are exempt from BOI reporting, but rules like this can shift, so it is worth confirmed status each year rather than assuming it stays the same.
When Wyoming or Delaware is the better choice
Illinois is a solid pick if you have a genuine tie to the state. If you do not, and your business is fully remote with customers anywhere, a state built around simplicity and non-resident owners is often a better fit.
| Factor | Illinois | Wyoming or Kentucky or Colorado |
|---|---|---|
| Formation speed | 1 to 2 weeks | 1 to 3 business days |
| Filing fee | $150 | Varies by state, check current fee |
| Yearly state cost | $75 | Often lower, check current fee |
| Best fit | Real Illinois presence or customers | Fully remote founders anywhere |
If your only connection to the US is the LLC itself, and you have no plans to operate physically in Illinois, a faster-forming state usually gets you to a working EIN and bank account sooner, with less ongoing state-level complexity. Talk it through in your free consultation before you file, since switching states later is more work than choosing the right one up front.
Step-by-step through PowerLaunch
- Pick your plan, Launch, Run, or Scale, based on how much ongoing bookkeeping and tax support you need.
- Complete checkout, adding the expedited EIN option if you need your EIN faster than the standard timeline.
- PowerLaunch files your Illinois formation, registered agent, and EIN application, and drafts your operating agreement or bylaws.
- Once your EIN is issued, PowerLaunch introduces you to Mercury, Wise Business, or Relay for a business bank account. Approval is the bank's decision, not PowerLaunch's.
- On Run and Scale, your annual report, transaction tracking, and federal filings, including Form 5472 and the pro forma 1120, are handled as part of your plan.
If PowerLaunch makes a formation error, it is corrected at PowerLaunch's cost, and that portion of the fee is refunded. State fees are never refundable, so choose your state and plan carefully before you file.
What to do next
If you are ready to move forward, head to the checkout at powerlaunch.solutions/signup and pick the plan that matches your needs. If you would rather talk through Illinois versus Wyoming or Delaware first, book a free 20-minute consultation at powerlaunch.solutions/book and get a straight answer for your specific situation.
