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Recent LLC Fee Reductions – A Victory for Small Business Owners
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Recent LLC Fee Reductions – A Victory for Small Business Owners

Since the introduction of Illinois’ Limited Liability Company Act (805 ILCS 180 et seq.) in 1994, fees for the initial filing of Articles of Organization have oscillated between $400-$500 (the section and amendments detailing LLC fees is 805 ILCS 180/50-10). This is in stark contrast to the Illinois Corporate filing fee of $150 for Articles of Incorporation. This difference in fees, while seemingly small in the grand scheme of business operations, likely lead many small business owners to opt for Subchapter S Corporations over the more flexible Limited Liability Company.

In a victory for small business owners, Governor Bruce Rauner signed into law Public Act 100-0571 on December 20, 2017, drastically reducing many filing fees for LLCs, including the initial and annual filing fees. Before the passage of this act, Illinois and Massachusetts topped the list for LLC fees. The initial filing fee was reduced to $150, down from $500, and the annual fee to $75, down from $250. Along with these headlining fees, other reductions include registering or reserving a name, amendments to articles, and applications for assumed business names.

On August 10, 2018, House Bill 4578, introduced by State Senator Tom Cullerton (D- Villa Park), was signed into law. This bill reduces the late penalties for LLC annual reports from $300 to $100. This was the second fee reduction concerning LLC operational expenses in the past eight months.

Should you have any questions concerning these reductions or wish to set up a business entity, please contact Al Domanskis at domanskis@boodlaw.com or 312-540-1075. Boodell & Domanskis, LLC’s attorneys can advise on how best to form your entity and assist you as your business grows.

 

Press release/fee list- http://www.cyberdriveillinois.com/news/2017/december/171220d1.pdf

Entire Public Act- http://www.ilga.gov/legislation/publicacts/fulltext.asp?Name=100-0571

Late Fee Reduction- http://www.chicagotribune.com/suburbs/elmhurst/community/chi-ugc-article-cullerton-reduces-the-cost-of-small-business-2018-08-14-story.html

Should you have any questions or wish to schedule a consultation concerning the topics in this article, please contact WebAdmin at cmarin@boodlaw.com.

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