Re-Domestication of Delaware LLCs to Illinois

While many Illinois businesses have traditionally been structured as Delaware limited liability companies that (may) then qualify to do business in Illinois, over the past couple years, there has been a trend to “re-domesticate” these LLCs to Illinois as the benefits of being a Delaware LLC may no longer be worth the additional expense and effort.  Among other things, in December 2017, Illinois reduced the cost to create a new LLC online from $600 to $250, which was later reduced to $150.  Additionally, the cost to file an annual report online was reduced from $300 to $125, which was later reduced to $75.  Meanwhile, in Delaware, existing LLCs are required to pay an annual tax of $300 per year, as well as annual registered agent fees.  Thus, by re-domesticating a Delaware LLC to Illinois, a business may save several hundred dollars per year in annual filing and maintenance fees.

Of course, there are certain costs associated with re-domesticating to an Illinois LLC, including filing the necessary forms in both Delaware and Illinois, but businesses are likely able to recoup this difference in a few years.  If you currently operate as a Delaware LLC and are interested in learning more about re-domesticating such entity to Illinois, please contact us to discuss your options.