Looking to start your own business in 2018? There’s at least a little good news, courtesy of the state of Illinois.

New state legislation substantially reduces startup, annual filing and other fees for limited liability companies (LLCs), the organizational structure preferred by many of Illinois’ 1.2 million small businesses.

The new law will encourage more businesses to form in Illinois rather than go to other states to escape high fees. Effective Dec. 22, the filing fee for new LLCs drops to $150 from $500 and annual report fees drop to $75 from $250. Previously, Illinois charged fees that were among the highest in the nation.

“This is a step in the right direction for our small businesses,” Gov. Bruce Rauner said in a news release. “The new rates are more competitive with other states. By easing the fee burden for LLCs here, we are sending a message to entrepreneurs and small business owners in Illinois: Start here and stay here.”

The governor signed the bill in the presence of dozens of small business advocates gathered at Level Office, an LLC that provides shared office space for startups. Level Office began in Chicago and now has facilities across the country.

“This is a clear win for business in Illinois,” Rauner said as he penned the legislation into law to rounds of applause.

Some of the fee changes include:

“Small businesses are the engines of our economy, our job creators who employ the majority of new workers in our state each year,” said Lt. Gov. Evelyn Sanguinetti, who chairs the Governor’s Rural Affairs Council. “We need to keep them here and help them grow, and this legislation will reduce their costs and make us more competitive with surrounding states. This is especially important for our small towns because we need more small businesses in rural Illinois to drive their economies and create jobs.”

Department of Commerce and Economic Opportunity Director Sean McCarthy said reducing LLC fees sends a positive signal.

“We support businesses that are looking to grow, invest and create new jobs in our state, regardless of their size,” McCarthy said. “SB 867 helps alleviate unnecessary burdens to allow Illinois businesses to thrive.”

“This bipartisan initiative is about much more than reducing some of the highest LLC fees in the nation,” agreed Small Business Advocacy Council CEO Elliot Richardson. “It is about leveling the playing field for small businesses, encouraging new businesses to form in our state, and growing our way toward economic stability.”

State legislators also hailed the action.

SOURCE: State of Illinois news release