Get IL LLC-50.1 2018-2024

An Illinois LLC is considered advantageous because it offers the same limited liability as a corporation, but with less formality in its creation and operation. However, as will be seen, there is a bit more to it than that.

Small business corporations (S corporations) who file the federal Form 1120S, U.S. Income Tax Return for an S Corporation, do not pay income tax. Corporations, including S corporations, also pay replacement tax. Corporations, other than S corporations, pay 2.5 percent (. 025) replacement tax.

After you form an LLC in Illinois, you must file an Annual Report and pay a $75 fee every year. You need to file your Annual Report in order to keep your Illinois LLC in compliance and in good standing with the Illinois Secretary of State.

Information Needed to Fill Out the Form Illinois LLC name. Registered agent name. Registered office address. The location where the LLC was formed. The date of formation and admission to Illinois. Main place of business address (P.O. boxes not allowed) Names and addresses for each member and manager.

Each member of the LLC pays self-employment taxes (12.4%for Social Security and 2.9% for Medicare) on their share of the LLC's profits. LLC members will also need to pay Illinois state income tax (4.95%). We go over other taxes your Illinois LLC may be obligated to pay.

For income tax purposes, an LLC with only one member is treated as an entity disregarded as separate from its owner, unless it files Form 8832 and elects to be treated as a corporation. However, for purposes of employment tax and certain excise taxes, an LLC with only one member is still considered a separate entity.