The State of Illinois passed legislation on December 20, 2017 which became effective immediately and significantly reduced the fees which must be paid to set up and maintain a limited liability company with the Secretary of State's office. The fee to file articles of organization was reduced from $500 to only $150. The fee to file an annual report was reduced from $250 to only $75. These fees are more in line with those charged in other states as Illinois was charging some of the highest rates in the nation.
For many years, we frequently advised owners of small or single owner businesses to incorporate rather than establish an LLC solely because the state fees were so much lower. That disadvantage will no longer exist under this new business friendly law. The fact remains that protection from liability for the small business owner is essentially the same whether using a corporation or LLC. Good insurance still remains the best way to insulate an owner from liability. Based on the new lower rates being charged, we expect the limited liability company to become more prevalent thatn the closely held corporation.