Fee for Illinois small business formation could drop drastically

For Illinois entrepreneurs, the fees and costs associated with starting a business can be overwhelming. However, the state legislature may soon provide some assistance with small business formation fees. A bill was recently approved by the Illinois Senate to lower the fee. The bill now moves to the House for approval.

The majority of small businesses are registered with the state as limited liability companies (LLC). Currently, Illinois has one of the highest filing fees for LLCs at $500. This is seen as a deterrent for some people to open small businesses in the state.

Therefore, a bill was introduced to take the filing fee from one of the highest in the nation to one of the lowest. If the bill becomes law, the filing fee for LLCs will be only $39. It is hoped this will attract more people to start their businesses in Illinois. Small businesses are still considered the backbone of any thriving economy, and the state senator who sponsored this bill acknowledges that it is up to the state government to do what it can to attract them.

Many factors need to be considered in small business formation, and one of those considerations is filing fees. The current fee of $500 may not seem like a lot of money in the overall picture, but when starting a business, every dollar counts. The decision regarding where to start a business and what type of entity to use requires research. Knowing the pros and cons of each entity, including state requirements for each, can help make these decisions easier.

Source: dailynorthwestern.com, "Bill to lower small business filing fee moves to Illinois House", Sophia Bollag, April 1, 2014

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