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Illinois vs Nevada LLC: fees, taxes, and which to pick

Data last updated: Apr 21, 2026

Illinois charges $150 to form an LLC; Nevada charges $425. Day-one sticker price is only part of the story, since most of the real cost comes from the annual obligations that stack up each year you keep the LLC open.

Over a rolling three-year window, Illinois runs about $1,100 less in total state fees than Nevada. Whether that gap matters depends on whether you actually operate in one of these states or are weighing a non-resident filing.

On speed, Nevada typically clears standard online filings faster than Illinois. Both states offer expedited tiers at an additional cost for filers on tight timelines.

For most small operators the choice is not really between these two states at all. It is between forming where the business actually operates and trying to route through a non-resident filing. The data below shows what each option actually costs.

Formation filing fee
Illinois $150
Nevada $425
Illinois saves $275
Year 1 total estimate
Illinois $325
Nevada $875
Illinois saves $550
Ongoing per year
Illinois $175
Nevada $450
Illinois saves $275
3-year total
Illinois $675
Nevada $1,775
Illinois saves $1,100

Key differences at a glance

  • Illinois costs $275 less to form ($150 vs $425).
  • Illinois is $275 per year cheaper to maintain ($175 vs $450).
  • Nevada has no state individual income tax; pass-through LLC income flows to members without a state layer. The other state does tax at the member level.

Where each state fits

For most filers, forming in the state you actually operate from is the right call. The side-by-side below shows where the two states meaningfully diverge.

What each state offers that the other does not

Only Nevada

  • No state income tax

Both states

  • Online filing
  • Paid expedited tier
  • No entity-level franchise or LLC tax
  • No publication requirement
  • Operating agreement not statutorily required

Three-year cost, side by side

Rough estimate of the state-facing cost to form and keep an LLC through three years. Both totals include a $100 per year registered-agent estimate.

Illinois Nevada
Year 1
$325
$875
Year 2
$500
$1,325
Year 3
$675
$1,775

Running total includes the one-time filing fee and annual ongoing costs (report fee or franchise tax plus a $100/year registered agent estimate).

What it costs under your specific situation

The table below runs the same LLC through four common scenarios. "Non-resident" rows assume a typical home-state foreign LLC registration adds about $200 per year of stacked cost; the real number depends on which state you live in and ranges from $50 to over $800 depending on jurisdiction.

Scenario Year 1 Each year after 3-year total
You live in Illinois, business operates there
No foreign LLC registration needed. You pay Illinois fees only.
 $325 $175 $675
You live in Nevada, business operates there
No foreign LLC registration needed. You pay Nevada fees only.
 $875 $450 $1,775
Non-resident forming in Illinois with operations elsewhere
You pay Illinois's fees plus a typical home-state foreign LLC registration of about $200 per year.
 $525 $375 $1,275
Non-resident forming in Nevada with operations elsewhere
You pay Nevada's fees plus a typical home-state foreign LLC registration of about $200 per year.
 $1,075 $650 $2,375

Illinois vs Nevada: full comparison

Dimension Illinois Nevada
Online filing
Can you file the formation document online?
 Yes Yes
Online approval time
Standard, non-expedited
 10 business days 2 business days
Expedited option
Paid fast-track filing
 $100 $125
Annual report
Required in addition to tax
 Required, $75 Required, $350
State-imposed annual tax
Franchise, privilege, or LLC tax minimum
 None None
State income tax
On pass-through LLC income at member level
 Yes No
Publication requirement
Newspaper publication after formation
 No No
Operating agreement
Required by state statute
 Recommended, not required Recommended, not required
Foreign LLC fee
Cost to register as a foreign LLC in this state
 $150 $425
State sales tax
General statewide rate
 6.3% 6.8%

Taxes in Illinois and Nevada

How each state handles entity-level tax on LLCs. Pass-through classification means member-level income tax also applies at each member's residence state.

Illinois tax

No entity-level franchise tax on LLCs. State income tax applies to member-level pass-through income. Corporate rate 7.0%.

Nevada tax

No entity-level franchise tax on LLCs. No state income tax.

Ongoing compliance

The recurring filings each state requires after formation.

Illinois

Annual report $75, due on your anniversary month. Registered agent required in Illinois.

Nevada

Annual report $350, due on your anniversary month. Registered agent required in Nevada.

Formation process, side by side

What actually happens from the moment you start filing to the moment you're in good standing. Use this as a checklist.

Illinois

  1. Check business-name availability on the Illinois entity search.
  2. Appoint a registered agent with a physical Illinois street address.
  3. File Form LLC-5.5 - Articles of Organization for $150.
  4. Wait for approval. Online typically 10 business days. Paid expedite from $100.
  5. Adopt an operating agreement (recommended, not required by Illinois statute).
  6. Apply for a federal EIN (free from the IRS).
  7. Open a business bank account to separate personal and business finances.
  8. File your first annual report and pay $75 when it comes due.

Nevada

  1. Check business-name availability on the Nevada entity search.
  2. Appoint a registered agent with a physical Nevada street address.
  3. File Articles of Organization – Limited-Liability Company (NRS Chapter 86) for $425.
  4. Wait for approval. Online typically 2 business days. Paid expedite from $125.
  5. Adopt an operating agreement (recommended, not required by Nevada statute).
  6. Apply for a federal EIN (free from the IRS).
  7. Open a business bank account to separate personal and business finances.
  8. File your first annual report and pay $350 when it comes due.

Before you pick either state

A few things that apply no matter which state you choose. These trip up enough first-time filers that they're worth stating explicitly.

Registered agent is non-negotiable. Both Illinois and Nevada (and every other US state) require every LLC to designate a registered agent with a physical street address in the state of formation. You can serve as your own agent if you live in the state; otherwise a commercial agent runs $50 to $125 per year. Using your own home address makes it part of the public record.

Forming elsewhere does not escape your home state's tax. If you live and operate a business from your home state, forming the LLC in Illinois or Nevada does not avoid your home state's income tax. The moment you transact business at home, your home state requires a foreign LLC registration, and state tax liability follows your residence regardless of where the entity sits on paper.

EIN applications are free. The IRS issues Employer Identification Numbers directly at no cost. Any service charging you to "get your EIN" is reselling a free form submission. Single-member LLCs with no employees technically don't need one for federal tax, but nearly every bank requires an EIN to open a business account.

Operating agreement matters more than the state you pick. A well-drafted operating agreement governs member ownership, management, profit splits, buy-sell terms, and dissolution. Without one, your LLC runs on the state's default rules, which are rarely what you want. California, Maine, Missouri, and New York require a written one by statute; every other state treats it as strongly recommended.

Agency contacts

Illinois Secretary of State, Department of Business Services

Website
www.ilsos.gov/departments/business_services/home.html
Phone
(217) 524-8008
Mail
Limited Liability Division, 501 S. Second St., Room 351, Springfield, IL 62756
Office
501 S. Second St., Room 351, Springfield, IL 62756
Hours
8:00 AM to 4:30 PM Central, Monday to Friday

Nevada Secretary of State, Commercial Recordings Division

Website
www.nvsos.gov/sos/home
Phone
(775) 684-5708
Email
sosmail@sos.nv.gov
Mail
202 North Carson Street, Carson City, NV 89701-4201
Hours
8:00 AM to 5:00 PM Pacific, Monday to Friday

Illinois Department of Revenue

Website
tax.illinois.gov
Phone
(800) 732-8866
Mail
101 West Jefferson Street, Springfield, IL 62702
Office
555 West Monroe, Suite 1100, Chicago, IL 60661
Hours
8:30 AM to 5:00 PM Central, Monday to Friday

Nevada Department of Taxation

Website
tax.nv.gov
Phone
(866) 962-3707
Mail
1550 College Parkway, Suite 115, Carson City, NV 89706
Hours
7:30 AM to 5:00 PM Pacific, Monday to Friday

Frequently Asked Questions

  • Is it cheaper to form an LLC in Illinois or Nevada?

    Illinois is cheaper at formation ($150) than Nevada ($425). Ongoing costs are also different: $175 vs $450 per year. Total over three years: $675 vs $1,775.

  • Can I form an LLC in Illinois if I live in Nevada?

    Yes, but your Nevada business will almost certainly need to register as a foreign LLC in Nevada too, which means paying Nevada's foreign registration fee and any ongoing Nevada obligations on top of the Illinois ones. The "form elsewhere to save" math usually doesn't work for operating businesses; it only works when you have no physical operations tied to any specific state.

  • How long does it take to form an LLC in Illinois vs Nevada?

    Illinois online: 10 business days; Nevada online: 2 business days. Illinois offers paid expedite from $100. Nevada offers paid expedite from $125.

  • Which state has lower taxes for an LLC, Illinois or Nevada?

    Illinois: state income tax applies to member-level pass-through income, no entity-level franchise or LLC tax. Nevada: no state income tax, no entity-level franchise or LLC tax.

  • Do both states require a registered agent?

    Yes. Every US state (and DC) requires every LLC to maintain a registered agent with a physical street address in the state. Illinois and Nevada both have this requirement. You can serve as your own agent if you live in the state; most out-of-state filers use a commercial agent for $50 to $125 per year.

  • Which state should I pick if I run an online business from home?

    Form in the state you actually live in. Your home state's Department of Revenue treats your residence as nexus regardless of where the LLC is filed, which means you owe state income tax there anyway. Forming in Illinois or Nevada to escape your home state's tax doesn't work; it adds paperwork. The non-resident filings make sense when you genuinely operate nowhere in particular: international founders, purely passive holding entities, or real-estate LLCs owning property in other states.

Full state guides

More Illinois and Nevada comparisons

More Illinois vs ...

More Nevada vs ...

Sources

  • Filing fee: law.justia.com/codes/illinois/chapter-805/act-805-ilcs-180/article-50/… · verified April 21, 2026
    805 ILCS 180/50-10(b)(1): 'Filing articles of organization (domestic), application for admission (foreign), and restated articles of organization (domestic), $150.' Series LLC formation fee is $400 under the same subsection.
  • Expedited filing: law.justia.com/codes/illinois/chapter-805/act-805-ilcs-180/article-50/… · verified April 21, 2026
    805 ILCS 180/50-50(e): Expedited fees include Articles of Organization $100, Articles of Amendment $100, Reinstatement $100, Application for Admission $100, Merger $200, Restated Articles $200. 24-hour turnaround for most expedited services.
  • Online filing portal: apps.ilsos.gov/llcarticles/index.jsp · verified April 21, 2026
    Illinois Secretary of State online Articles of Organization filing portal.
  • Certificate of Formation form: www.ilsos.gov/publications/business-services/llc.html · verified April 21, 2026
    Form LLC-5.5 Articles of Organization. PDF hosted at https://www.ilsos.gov/publications/pdf_publications/llc55.pdf
  • Business name search: apps.ilsos.gov/corporatellc/ · verified April 21, 2026
    Illinois Secretary of State business entity search.
  • Operating agreement requirement: law.justia.com/codes/illinois/chapter-805/act-805-ilcs-180/article-1/ · verified April 21, 2026
    805 ILCS 180/1-5 defines 'operating agreement' as an agreement 'whether oral, in a record, implied, or in any combination thereof.' No statutory requirement for a written operating agreement.
  • Publication requirement: law.justia.com/codes/illinois/chapter-805/act-805-ilcs-180/ · verified April 21, 2026
    805 ILCS 180 imposes no newspaper publication requirement for LLC formation.
  • Foreign LLC registration fee: law.justia.com/codes/illinois/chapter-805/act-805-ilcs-180/article-50/… · verified April 21, 2026
    805 ILCS 180/50-10(b)(1): Application for Admission (foreign LLC) fee is $150, same as domestic Articles of Organization.
  • Annual report fee: law.justia.com/codes/illinois/chapter-805/act-805-ilcs-180/article-50/… · verified April 21, 2026
    805 ILCS 180/50-10(b)(11): Annual report fee $75, plus $50 per series for series LLCs. 805 ILCS 180/50-15(b)(1) penalty: $100 plus $100 for each year of delinquency. Deadline is before the first day of the anniversary month (§50-1(b)).
  • Franchise tax: tax.illinois.gov/research/taxrates/income.html · verified April 21, 2026
    Illinois phased out the corporate franchise tax effective January 1, 2024 (P.A. 102-16). LLCs classified as partnerships pay Personal Property Replacement Tax at 1.5% of net income, but this is not classified as a franchise tax. No franchise tax applies to LLCs.
  • Corporate income tax rate: tax.illinois.gov/research/taxrates/income.html · verified April 21, 2026
    Illinois corporate income tax is 7% of net income, plus 2.5% Personal Property Replacement Tax, for a combined 9.5% rate on C-corporation income. Individual income tax is 4.95% (flat).
  • Sales tax rate: tax.illinois.gov/questionsandanswers/answer.139.html · verified April 21, 2026
    Illinois state general merchandise sales tax rate is 6.25%. Effective January 1, 2026, the 1% state grocery tax was eliminated. Local jurisdictions may impose additional taxes; combined rates vary by location.
  • Filing fee: nevada.public.law/statutes/nrs_86.561 · verified April 21, 2026
    Nevada formation bundles three mandatory filings at formation: (1) Articles of Organization $75 (NRS 86.561(1)(a)), (2) Initial List of Managers or Members $150 (NRS 86.263), (3) State Business License $200 (NRS 76.100/76.130). Combined minimum formation cost is $425.
  • Expedited filing: www.nvsos.gov/sos/businesses/processing-dates · verified April 21, 2026
    Nevada offers a 24-hour expedited tier at $125, plus 2-hour service ($500) and 1-hour service ($1,000). Standard SilverFlume online submissions are typically processed within 1-2 business days without expedite. Same-day ($125) and 24-hour ($125) are often the same in practice.
  • Online filing portal: www.nvsilverflume.gov/home · verified April 21, 2026
    SilverFlume is Nevada's official business portal for filing Articles of Organization, Initial List, and State Business License in one combined transaction.
  • Certificate of Formation form: www.nvsos.gov/sos/home/showpublisheddocument?id=6541 · verified April 21, 2026
    Nevada Secretary of State Articles of Organization form for domestic Limited-Liability Company under NRS Chapter 86.
  • Business name search: esos.nv.gov/EntitySearch/OnlineEntitySearch · verified April 21, 2026
    Nevada Secretary of State online entity search.
  • Operating agreement requirement: nevada.public.law/statutes/nrs_86.286 · verified April 21, 2026
    NRS 86.286(1): 'A limited-liability company may, but is not required to, adopt an operating agreement.' No statutory requirement for a written or filed operating agreement.
  • Publication requirement: www.leg.state.nv.us/nrs/nrs-086.html · verified April 21, 2026
    Nevada Chapter 86 imposes no newspaper publication requirement for LLC formation.
  • Foreign LLC registration fee: nevada.public.law/statutes/nrs_86.561 · verified April 21, 2026
    NRS 86.561(1)(a): $75 for registration of a foreign limited-liability company. Foreign LLCs also owe the Initial List ($150) and State Business License ($200), so minimum registration is $425, mirroring domestic formation.
  • Annual report fee: nevada.public.law/statutes/nrs_86.263 · verified April 21, 2026
    NRS 86.263 sets the Annual List of Managers or Members fee at $150. NRS 76.130 sets the annual State Business License renewal at $200. Total ongoing $350 due by the last day of the LLC's anniversary month.
  • Franchise tax: tax.nv.gov/businesses/commerce-tax/ · verified April 21, 2026
    Nevada has no corporate franchise tax. The Commerce Tax applies only when Nevada-sourced gross revenue exceeds $4 million per fiscal year; industry rates range 0.051%–0.331%.
  • State income tax: tax.nv.gov/tax-types/ · verified April 21, 2026
    Nevada has no state personal income tax and no corporate income tax. Nevada Constitution Article 10 prohibits a personal income tax without amendment.
  • Corporate income tax rate: tax.nv.gov/tax-types/ · verified April 21, 2026
    Nevada has no corporate income tax. Recorded as null; the state imposes the Modified Business Tax (payroll) and Commerce Tax (gross receipts) instead.
  • Sales tax rate: tax.nv.gov/tax-types/sales-tax-use-tax/ · verified April 21, 2026
    Nevada base state sales and use tax rate is 6.85%. County add-ons bring combined rates to 6.85%–8.375%.
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