CHICAGO…..State Representative David S. Olsen (R-Downers Grove) joined Governor Bruce Rauner today for the signing of legislation that immediately and substantially reduces fees limited liability companies (LLCs) must pay in connections with the mandatory filings they must submit to the Secretary of State’s Office. The governor signed the bill in the presence of dozens of small business advocates gathered at Level Office, an LLC that provides shared office space for startups.
“This is a step in the right direction for our small businesses,” Rauner said during the bill signing. “The new rates are more competitive with other states. By easing the fee burden for LLCs here, we are sending a message to entrepreneurs and small business owners in Illinois: Start here and stay here.”
SB 867, co-sponsored by Olsen, reduces LLC fees to levels that match similar fees paid by corporations in Illinois. “This new law provides much-needed relief for the small business owners who drive the Illinois economy,” said Olsen after the bill signing. “This sends a clear message to those who provide jobs in our state that we want to ease their burden so they will come, remain and expand their businesses here. I look forward to continuing to work with my colleagues to find more comprehensive measures that will provide tangible relief for business owners across our state.”
Prior to the signing of the bill, Illinois was tied with Massachusetts for having the highest start-up fee in the country for LLCs. Entrepreneurs in this state were charged $500 to simply file paperwork to organize their new business. Moving forward, the LLC filing fee will be $150. Other fee reductions included in SB 867 include:
- Reinstatement fee dropped to $200 from $500
- Reserving a company name fee dropped to $25 from $300
- Annual report fee dropped to $75 from $250
- Fee for filing amendments dropped to $50 from $150
- Name transfer fee dropped to $25 from $100
Department of Commerce and Economic Opportunity Director Sean McCarthy said reducing LLC fees sends a positive signal. “We support businesses that are looking to grow, invest and create new jobs in our state, regardless of their size,” McCarthy said. “SB 867 helps alleviate unnecessary burdens to allow Illinois businesses to thrive.”
Small Business Advocacy Council CEO Elliot Richardson agreed, and added, “This bipartisan initiative is about much more than reducing some of the highest LLC fees in the nation. It is about leveling the playing field for small businesses, encouraging new businesses to form in our state, and growing our way toward economic stability.”
Olsen said reducing the financial burden on small businesses is a top legislative priority for him. “While bordering states have been rolling out the welcome mat for new businesses for years, Illinois was nickel-and-diming companies and sending the message that Illinois is not a friendly place to do business,” Olsen said. “This significant reduction in fees sends a strong signal that we are indeed interested in attracting new business, growing our economy and working with entrepreneurs who wish to create jobs here.” 