Comparison
Illinois LLC vs. Wyoming LLC — head to head
All figures verified against official state portals as of 2026-05-07.
| Factor | Illinois (IL) | Wyoming (WY) |
|---|---|---|
| Formation filing fee | $150 | $100 |
| Annual fee | $75/year Annual Report | $60/year minimum Annual Report |
| First-year total cost | ~$225 (excl. RA service) | ~$160 (excl. RA service) |
| Ongoing annual cost | $75 Annual Report + RA service (~$50–$100/yr) | $60 minimum Annual Report + RA service (~$50–$100/yr) |
| Online processing time | 5–10 business days standard; Expedited processing may be available — check IL SOS portal | 3–5 business days; Same-day and 24-hour options available |
| State income tax | Yes | None |
| Franchise / gross receipts tax | No franchise tax. Illinois has a flat 4.95% state income tax on individual taxable income — IL-resident LLC members pay this on pass-through earnings regardless of formation state. Significant cost for IL operators. | No franchise tax and no state income tax. Annual Report fee ($60 minimum) is an administrative fee. Zero income tax is the primary financial advantage over Illinois for non-IL operators. |
| Name reservation | $25 for 90 days | $25 for 120 days |
| Publication requirement | None | None |
| Annual report deadline | Annual Report before anniversary month ($75 fee; discloses manager/member names) | Annual Report by anniversary month ($60 minimum — no member/manager disclosure required) |
| Filing portal | Illinois SOS — ilsos.gov | Wyoming SOS — wyobiz.wyo.gov |
| Name search | IL name search | WY name search |
| Governing statute | Illinois Limited Liability Company Act, 805 ILCS 180/1-1 et seq. | Wyo. Stat. § 17-29-101 et seq. |
IL: $150 filing + $75/yr Annual Report + 4.95% flat state income tax on pass-through earnings. WY: $100 filing + $60/yr Annual Report, no state income tax, no franchise tax. Wyoming saves $50 upfront, $15/yr in annual fees, and eliminates Illinois's 4.95% income tax — but ONLY for non-IL operators. If your business operates in Illinois, IL income tax applies regardless of formation state.
Illinois annual obligations
What a Illinois LLC must file each year
- Due date
- Before the first day of the LLC's anniversary month each year
- Fee
- $75/year Annual Report
- What to file
- Annual Report before anniversary month ($75 fee; discloses manager/member names)
- Failure consequence
- $100 late penalty for missing the deadline. Continued non-compliance results in administrative dissolution of the LLC.
- Filing portal
- Illinois annual filing portal
Wyoming annual obligations
What a Wyoming LLC must file each year
- Due date
- First day of the LLC's anniversary month each year
- Fee
- $60/year minimum Annual Report
- What to file
- Annual Report by anniversary month ($60 minimum — no member/manager disclosure required)
- Failure consequence
- $25 late penalty for missed filing deadline. Continued non-compliance results in administrative dissolution.
- Filing portal
- Wyoming 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 from existing IL entities.
- Name reservation: $25 for 90 days.
- Search at IL name search.
Wyoming name rules
LLC name requirements in Wyoming
- Required designators include LLC, L.L.C., or Limited Liability Company.
- Name must be distinguishable from existing WY entities.
- Name reservation: $25 for 120 days.
- Search at WY name search.
City-specific guides
Illinois and Wyoming LLC formation by city
State rules apply statewide; city guides cover local context and additional permits.
Registered agents
Registered agent requirements: Illinois vs. Wyoming
| Requirement | Illinois | Wyoming |
|---|---|---|
| Required | Yes | Yes |
| Who can serve | IL resident 18+ with in-state street address, or registered IL entity | WY resident 18+ with in-state street address, or registered WY entity |
| Self-serve allowed | Yes (address becomes public state record) | Yes (address becomes public state record) |
| Consent required | Consent or appointment captured in the formation filing | Consent or appointment captured in the formation filing |
| Commercial RA typical cost | $50–$150/yr | $50–$150/yr |
Decision framework
How to choose: Illinois vs. Wyoming LLC
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Compare formation fees: IL $150 vs. WY $100 Illinois's $150 formation fee is $50 more than Wyoming's $100. Wyoming saves $50 upfront. Illinois's standard processing of 5–10 business days is slower than Wyoming's 3–5 days. Both states are solid low-cost jurisdictions, but Wyoming starts with a cost and speed advantage.
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Compare annual obligations: IL $75/yr vs. WY $60/yr Illinois requires a $75/yr Annual Report. Wyoming requires a $60/yr minimum Annual Report. Wyoming saves $15/yr in ongoing annual fees. Over 5 years: Illinois ~$525 ($150 + 5×$75) vs. Wyoming ~$400 ($100 + 5×$60). Wyoming is approximately $125 cheaper over 5 years — the fee difference is modest compared to the income tax consideration.
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Understand the income tax difference — the critical factor Illinois imposes a flat 4.95% state income tax on individual taxable income. LLC members pay this rate on their Illinois-sourced pass-through earnings. Wyoming has no state income tax. For an LLC generating $100,000 in annual pass-through income, Illinois income tax = $4,950/yr — dramatically outweighing the $15/yr annual report savings. For non-IL operators, forming in Wyoming eliminates this 4.95% state tax burden. However, Illinois residents or businesses with Illinois nexus owe IL income tax regardless of formation state.
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Clarify when Wyoming formation eliminates Illinois income tax Wyoming formation avoids Illinois income tax ONLY if: (1) the LLC member is not an Illinois resident; AND (2) the LLC has no Illinois-sourced income (no IL employees, no IL office, no IL customers generating IL-sourced revenue). For IL-resident members, income tax follows the member — they owe IL income tax on their share of LLC earnings regardless of where the LLC was formed. For fully remote businesses operated from outside Illinois with no IL customers or employees, forming in Wyoming means zero state income tax. This distinction is the most important factor in the IL vs. WY comparison.
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Compare anonymity: Wyoming wins over Illinois Illinois's Annual Report requires manager/member name disclosure — this becomes public record via the Illinois SOS database. Wyoming's Articles of Organization and Annual Report require no member or manager disclosure. For founders who want to keep their ownership private, Wyoming is significantly more private than Illinois. Wyoming enables true anonymous LLC formation; Illinois requires annual public disclosure of members.
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Compare charging-order asset protection: Wyoming is stronger Wyoming's charging-order statute (Wyo. Stat. § 17-29-503) expressly declares the charging order as the EXCLUSIVE creditor remedy against an LLC interest — a creditor cannot foreclose on the membership interest, force liquidation, or obtain management rights. Illinois's LLC Act provides charging-order protection under 805 ILCS 180/30-20, but Illinois has not adopted the exclusive-remedy language that Wyoming has. For asset-protection holding structures, Wyoming is the stronger jurisdiction.
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Choose your state and file For IL-operating businesses with IL employees, customers, or nexus: forming in Wyoming doesn't avoid Illinois income tax. Form in Illinois (ilsos.gov, $150) if operating in IL — you'll owe IL tax regardless. For non-IL businesses, remote operators, or holding companies with no Illinois nexus: form in Wyoming (wyobiz.wyo.gov, $100). Wyoming saves $50 upfront, $15/yr in annual fees, and eliminates Illinois's 4.95% income tax entirely for non-IL operators. After formation, obtain an EIN at irs.gov/ein, draft an Operating Agreement, and open a business bank account.
Provenance
Statute basis & official sources
Last verified 2026-05-07.
Illinois Limited Liability Company Act, 805 ILCS 180/1-1 et seq.; IL Annual Report: 805 ILCS 180/50-10; IL charging-order: 805 ILCS 180/30-20; Illinois Income Tax Act (IITA), 35 ILCS 5/1 et seq. (4.95% flat rate); Wyoming Limited Liability Company Act, Wyo. Stat. § 17-29-101 et seq.; Wyoming charging-order: Wyo. Stat. § 17-29-503; Wyoming Annual Report: Wyo. Stat. § 17-29-209.
Why you need an LLC (either state)
- Without entity formation, the business name is unprotected in both Illinois and Wyoming; a competitor can register the same name as an LLC. Check availability and reserve before filing -- Illinois: https://apps.ilsos.gov/businessentitysearch/ ($25 for 90 days); Wyoming: https://wyobiz.wyo.gov/Business/FilingSearch.aspx ($25 for 120 days).
- Illinois: failure to file the $75/yr Annual Report results in a $100 late penalty and eventual administrative dissolution.
- Wyoming: failure to file the Annual Report by the anniversary month results in a $25 late penalty and eventual administrative dissolution.
FAQ
Illinois vs. Wyoming LLC — common questions
Can forming in Wyoming save me Illinois's 4.95% state income tax?
Only if your business has no Illinois nexus. Illinois income tax applies to Illinois-sourced income regardless of formation state. If you are an Illinois resident, you owe IL income tax on your share of LLC pass-through earnings regardless of where the LLC is formed. If your business has Illinois employees, an Illinois office, or serves Illinois customers generating IL-sourced revenue, IL income tax applies. Wyoming formation only eliminates the IL income tax burden if the member is a non-IL resident and the LLC has no Illinois-sourced income.
How much does Illinois's income tax cost compared to Wyoming's zero?
Illinois imposes a flat 4.95% state income tax on individual taxable income. For an LLC generating $100,000 in annual pass-through income, that's $4,950/yr in IL state income tax. For $250,000 in pass-through income: $12,375/yr. Wyoming has no state income tax — $0 for the same income levels. The income tax difference dwarfs the $15/yr annual report savings when evaluating IL vs. WY for non-IL operators. This makes Wyoming's income tax advantage the single most important financial factor in this comparison for eligible businesses.
Is Wyoming's LLC annual report cheaper than Illinois?
Yes, moderately. Wyoming's Annual Report is $60/yr minimum vs. Illinois's $75/yr — Wyoming saves $15/yr in annual report fees. Over 5 years, that's $75 in annual report savings plus $50 upfront formation savings = $125 total. However, the income tax difference ($4,950–$12,375+/yr for non-IL operators) is the more significant cost differential. Annual report fee savings are a secondary consideration — state income tax avoidance is the primary financial argument for Wyoming over Illinois.
Does Illinois or Wyoming offer better LLC anonymity?
Wyoming offers significantly better anonymity. Illinois's Annual Report requires disclosure of manager and/or member names — searchable via the Illinois SOS database. Wyoming's Articles of Organization and Annual Report require no member or manager disclosure. For founders who want to keep their ownership off public records, Wyoming is the clear choice. Illinois is a moderate-disclosure state for LLC formation.
What is Wyoming's charging-order protection, and how does it compare to Illinois?
Wyoming's charging-order statute (Wyo. Stat. § 17-29-503) expressly declares the charging order as the EXCLUSIVE remedy for a creditor of an LLC member — a creditor cannot foreclose on the membership interest, force a liquidation, or obtain management control. Illinois's LLC Act (805 ILCS 180/30-20) provides charging-order protection but has not declared it an exclusive remedy with Wyoming's statutory force. For asset-protection holding structures, Wyoming's explicit exclusive-remedy rule is the stronger framework.
Should an Illinois resident form their LLC in Wyoming?
It depends on whether the business has Illinois nexus. If you're an Illinois resident operating a business in Illinois — serving IL customers, employing IL workers, or having an IL office — forming in Wyoming doesn't avoid IL income tax. You'd still owe 4.95% on IL-sourced earnings and would need to foreign-register in IL ($150 + $75/yr) plus pay Wyoming's fees. Net result: higher cost and the same tax bill. If you're an Illinois resident with a fully remote business serving non-IL customers, Wyoming formation eliminates the 4.95% state income tax on those earnings — a potentially significant annual saving.
§ 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 Wyoming business attorney or CPA before filing.