The fees associated with filing and operating an LLC in Illinois are among the highest in the nation. Forming as a LLC is the right choice for many small businesses as it provides the limited liability features of a corporation and the tax efficiencies and operational flexibility of a partnership. Unfortunately, far too many business owners do not form LLCs because excessive fees prompt them to form as a corporation or to simply file in other states.
Small businesses in our state, many of which understandably operate as LLCs, should not be penalized by paying among the highest fees in the nation and significantly more than corporations. Lowering these fees will help level the playing for small businesses, encourage new businesses to form in Illinois, and improve the perception of Illinois’ business climate.
Grassroots Efforts: For the past several years, the SBAC and our coalition of over fifty chambers and trade organizations have been working to lower the fees associated with filing and operating as an LLC. Lowering LLC filing fees were highlighted in a comprehensive report issued by the House Revenue and Finance Committee as essential to improving the business climate in Illinois. DCEO issued their statewide comprehensive economic development plan and SBAC inspired legislation to lower LLC fees to match corporate fees was advocated for and endorsed. Governor Rauner also included the initiative in his “Bring Back Blueprint” noting the stifling effect these onerous fees have on job creators and entrepreneurship.
We will continue our efforts to move this common sense initiative.
The SBAC is proud to lead a coalition of fifty business and trade organizations who support lowering Illinois’ LLC fee schedule. Click here to learn more about the coalition.
Legislation SBAC Supports
HB 387, filed by Representative Carol Sente, lowers all LLC fees to match corporate fees. For full bill text and status, click here.
HB 383, filed by Representative David Harris, lowers the initial filing fee as well as series LLCs. For full bill text and status, click here.
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