HB1604 amends the Illinois Limited Liability Company Act to create a temporary annual report fee waiver for certain small LLCs. Specifically, for each of the first five years after formation, an LLC with gross annual revenue under $1,000,000 would not have to pay the $75 annual report filing fee for that year. The bill leaves the rest of the LLC fee schedule intact, including fees for formation, amendments, reinstatement, name registrations, assumed names, mergers, and other filings.
The practical effect is to reduce startup and early-stage compliance costs for qualifying small businesses and foreign LLCs operating in Illinois. By tying the waiver to both a time limit and a revenue threshold, the bill targets newer, lower-revenue companies rather than all LLCs. It would amend Section 50-10 of the Limited Liability Company Act and directly affect filing fees collected by the Secretary of State.
Impact
The bill would change Illinois law by adding a new exemption to the annual report fee provisions in 805 ILCS 180/50-10. For five years after formation, qualifying LLCs with less than $1,000,000 in gross annual revenue would owe no annual report filing fee, though delinquency penalties and other LLC-related fees would still apply. The main affected parties are small business owners, startups, and the Secretary of State’s office, which would collect less fee revenue from eligible filers.
Sentiment
No committee transcripts or recorded votes were provided, so there is no direct evidence of legislative debate or formal support/opposition in the materials supplied. Based on the bill’s structure and caption, the measure appears pro-business and aimed at easing administrative costs for small LLCs, which suggests likely favorable sentiment among small-business advocates. However, the absence of discussion or voting history means overall sentiment cannot be assessed beyond the bill’s apparent intent.
Contention
The primary policy question is whether waiving annual report fees for up to five years and for companies under a revenue cap is the right way to support small businesses. Supporters would likely argue that the waiver helps startups conserve cash during their early years and reduces compliance burdens. Potential concerns could include reduced state fee revenue, whether the $1,000,000 threshold is too high or too low, and whether the benefit should be limited to newer entities rather than all small LLCs. No specific opponents or proponents are identified in the provided record.