Comparison
Illinois LLC vs. Wisconsin LLC — head to head
All figures verified against official state portals as of 2026-05-08.
| Factor | Illinois (IL) | Wisconsin (WI) |
|---|---|---|
| Formation filing fee | $150 | $130 |
| Annual SOS/report fee | $75/year Annual Report | $25/year Annual Report |
| Five-year state filing cost | ~$525 | ~$255 |
| State income tax / owner tax | 4.95% individual income tax; partnership/S-corp LLCs also face 1.5% Personal Property Replacement Tax on net Illinois income. | Graduated individual income tax, 3.50% to 7.65% depending on income and filing status. |
| Franchise, replacement, or gross-receipts tax | No classic franchise tax; Illinois PPRT applies to partnership/S-corp LLC net income and Cook County/Chicago taxes may add local layers. | No Illinois-style PPRT; income tax is member-level for default pass-through LLCs. |
| Operating-state recommendation | Best when Illinois is the real operating state; avoid foreign qualification and Chicago-area nexus risk. | Best for Wisconsin operations and Milwaukee/Madison businesses; lower state filings than Illinois. |
| Foreign qualification risk | A Illinois LLC operating in Wisconsin may need Wisconsin foreign qualification, tax registration, and an in-state registered agent. | A Wisconsin LLC operating in Illinois may need Illinois foreign qualification, tax registration, and an in-state registered agent. |
| Publication requirement | None | None |
| Filing portal | Illinois SOS LLC online filing | Wisconsin DFI One Stop Business Portal |
| Best fit | Best when Illinois is the real operating state; avoid foreign qualification and Chicago-area nexus risk. | Best for Wisconsin operations and Milwaukee/Madison businesses; lower state filings than Illinois. |
Illinois totals about $525 over five years; Wisconsin totals about $255. The $270 state-fee gap is meaningful but smaller than income-tax residency, Chicago/Cook County taxes, and whether the actual customers/employees are in Illinois or Wisconsin.
Five-year state-fee delta
IL vs. WI carrying cost
Registered agent service excluded because it usually applies in either state.
| Year | Illinois | Wisconsin |
|---|---|---|
| Year 1 | ~$225 | ~$155 |
| Year 2 | ~$300 | ~$180 |
| Year 3 | ~$375 | ~$205 |
| Year 4 | ~$450 | ~$230 |
| Year 5 | ~$525 | ~$255 |
Illinois annual obligations
What a Illinois LLC must file each year
- Due date
- Annual Report due before the first day of the anniversary month; $75 domestic report ($250 foreign LLC report).
- Fee
- $75/year Annual Report
- What to file
- Annual Report due before the first day of the anniversary month; $75 domestic report ($250 foreign LLC report).
- Failure consequence
- Late filings can trigger fees, loss of good standing, administrative dissolution, or tax collection consequences depending on the filing.
- Filing portal
- Illinois annual filing portal
Wisconsin annual obligations
What a Wisconsin LLC must file each year
- Due date
- Annual Report due yearly through Wisconsin DFI; $25 domestic LLC fee.
- Fee
- $25/year Annual Report
- What to file
- Annual Report due yearly through Wisconsin DFI; $25 domestic LLC fee.
- Failure consequence
- Late filings can trigger fees, loss of good standing, administrative dissolution, or tax collection consequences depending on the filing.
- Filing portal
- Wisconsin annual filing portal
Illinois name rules
LLC name requirements in Illinois
- Required designators include LLC, L.L.C., or Limited Liability Company.
- Name must be distinguishable on Illinois SOS records.
- Annual report is due before the anniversary month; foreign LLC annual report fee is higher than domestic.
- Search at the Illinois business entity database before filing.
Wisconsin name rules
LLC name requirements in Wisconsin
- Required designators include LLC, L.L.C., or Limited Liability Company.
- Name must be distinguishable in Wisconsin DFI records.
- Annual report is low-cost but due every year.
- Search Wisconsin DFI before filing.
City-specific guides
Illinois and Wisconsin LLC formation by city
State rules apply statewide; city guides cover local context and additional permits.
Registered agents
Registered agent requirements: Illinois vs. Wisconsin
| Requirement | Illinois | Wisconsin |
|---|---|---|
| Required | Yes | Yes |
| Who can serve | IL resident 18+ with in-state street address, or registered IL entity | WI resident 18+ with in-state street address, or registered WI entity |
| Self-serve allowed | Yes (address becomes public state record) | Yes (address becomes public state record) |
| Consent required | Registered agent acceptance is captured in the filing; agent must maintain an Illinois office. | Registered agent and registered office required in Wisconsin. |
| Commercial RA typical cost | $50–$150/yr | $50–$150/yr |
Decision framework
How to choose: Illinois vs. Wisconsin LLC
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Start with the operating state Employees, offices, inventory, property, local licenses, and recurring in-state customers usually decide where the LLC must register. The cheaper formation state is not cheaper if it adds foreign qualification.
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Compare Secretary of State fees IL: $150 formation + $75/year Annual Report. WI: $130 formation + $25/year Annual Report. Wisconsin is cheaper on state filings; Illinois imposes 4.95% individual tax and PPRT on partnership/S-corp LLCs, while Wisconsin uses graduated individual rates up to 7.65%.
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Compare tax exposure Illinois: 4.95% individual income tax; partnership/S-corp LLCs also face 1.5% Personal Property Replacement Tax on net Illinois income. No classic franchise tax; Illinois PPRT applies to partnership/S-corp LLC net income and Cook County/Chicago taxes may add local layers. Wisconsin: Graduated individual income tax, 3.50% to 7.65% depending on income and filing status. No Illinois-style PPRT; income tax is member-level for default pass-through LLCs.
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Price foreign qualification before filing Model both directions: domestic formation in one state plus foreign registration, annual reports, tax filings, registered agent cost, and local licenses in the operating state.
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Use corridor-specific facts Wisconsin wins filing cost; Illinois/Wisconsin worker reciprocity keeps payroll residency analysis from being purely entity-level.
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File and calendar compliance After choosing the operating state, file through the official portal, obtain an EIN, adopt an operating agreement, set up payroll/tax accounts if needed, and calendar annual statements or reports.
Provenance
Statute basis & official sources
Last verified 2026-05-08.
805 ILCS 180; 35 ILCS 5; 30 ILCS 115/12; Wis. Stat. Chapter 183; Wisconsin DOR individual income tax guidance; IRS check-the-box regulations for federal LLC classification; state revenue guidance linked below.
Why you need an LLC (either state)
- Operating without an LLC leaves personal assets exposed to business debts, leases, and lawsuits.
- Forming in the wrong state can create dual registered agents, dual annual filings, and avoidable foreign qualification.
- Ignoring state income tax, gross-receipts tax, replacement tax, local income tax, or city licensing can create penalties and loss of good standing.
- Banks and payment processors commonly require filed formation documents, EIN confirmation, and an operating agreement.
FAQ
Illinois vs. Wisconsin LLC — common questions
Is it cheaper to form an LLC in Illinois or Wisconsin?
Illinois totals about $525 over five years; Wisconsin totals about $255. The $270 state-fee gap is meaningful but smaller than income-tax residency, Chicago/Cook County taxes, and whether the actual customers/employees are in Illinois or Wisconsin.
Should I form where I live or where I work?
For most owner-operated LLCs, form where the business actually operates: where you work, have employees, hold inventory, lease space, or repeatedly serve local customers. Residence matters for owner-level tax, but business nexus drives registration.
Can I form in the cheaper state and operate across the border?
Yes, but you may need foreign qualification in the operating state. That usually means another filing fee, another registered agent, and the operating state taxes you were trying to avoid.
Do these states require newspaper publication?
No. Ordinary LLCs in these Midwest states do not have the New York/Nebraska/Arizona-style publication requirement.
Does state formation change federal LLC tax treatment?
No. A single-member LLC is disregarded by default and a multi-member LLC is a partnership by default unless it elects corporate taxation. State-level taxes and reports differ, but federal classification does not.
When is a two-state LLC structure worth it?
Usually only when operations are genuinely split, there is real property in both states, customers or employees create nexus in both states, or a legal/tax advisor has a specific reason for a holding/operating company structure.
§ A Building permits by city
§ B LLC formation guides
§ C Companion tools
Disclaimer: Informational only — not legal advice. LLC laws change; verify with a Illinois or Wisconsin business attorney or CPA before filing.