The cost of doing business in Illinois has gone down under new legislation signed into law last week by Gov. Bruce Rauner.
Enacted on Dec. 20, a new rate structure applies to businesses looking to form in Illinois and also benefits existing businesses.
Previously, the cost to file articles of organization for a new limited liability company, or LLC, was $500, but now costs $150; the cost of obtaining an annual report also was reduced, from $250 to $75.
Edwardsville business attorney Todd Sivia said the new law is a “win” for the business community, one that he sees as potentially keeping businesses located in Illinois.
“I’ve worked with companies that escape to other states to avoid the high costs in Illinois,” he said.
“These dramatic reductions will encourage more business owners to consider starting an LLC instead of a corporation.”
Sivia said LLCs can provide the limited liability features of a corporation, but has the tax efficiency and operational flexibility of a partnership. Lowering the costs of operating puts LLCs more in line with what corporations currently pay to operate, he added.
“This adjustment should benefit business owners, local business growth and the overall business landscape in the state,” Sivia said.
The bill passed unanimously, with only one law maker voting present in the House, and was sent to Rauner in November.
State Rep. Charlie Meier (R-Okawville) said in a press release that the new law should help create more jobs as small businesses employ the majority of employees in Illinois.
“Anytime we can help reduce the cost of doing business in our state, it’s good for jobs and customers,” Meier said. “Before Dec. 20, Illinois’ cost for entrepreneurs to open their business was among the highest in the country. I think this new law will certainly help put our state another step towards prosperity.”
|LLC Filing Fee||$500||$150|
|Reserved Name Application||$300||$25|