ILLINOIS LLC FOREIGN QUALIFICATION
What is Illinois Foreign LLC Foreign Qualification?
explain
You want to do business in the state of Illinois but are registered as a LLC in another state.
In order to legally conduct business in the state of Illinois you must register with the Illinois Secretary of State as
a
Foreign LLC.
The process of registering as a Foreign LLC in Illinois is called
Illinois LLC Foreign Qualification.
The process of Illinois LLC Foreign Qualification is similar to the process of forming a Domestic LLC in Illinois.
Your original home LLC formation documents (frequently called Articles of Organization) and By Laws apply to your Illinois Foreign LLC.
The Officers and Directors of your home LLC will have the same roles in the Illinois Foreign LLC.
Specific requirements to qualify as a Foreign LLC in Illinois are explained below.
Once you have made the decision to Qualify as a Foreign LLC in Illinois,
an Illinois lawyer can file your documents and act as a middle man for a few hundred dollars an hour;
or you can use an online service provider like All Business Documents to perform these services.
Put the money you save with All Business Documents right where it belongs - into your new Illinois Foreign LLC.
What is an Illinois Foreign LLC?
explain
In the United States, just because you are registered to do business in one state does not mean that you can legally do business in another state.
If you want to transact any serious business in a state other than the state in which your LLC is registered, most likely you will
have to register with the state in which you want to do business before you can legally conduct business there.
For example, a LLC that is registered in California wants to do business in Illinois.
The California LLC is a "Domestic" LLC in California and will be a "Foreign" LLC in Illinois.
The California LLC needs to register with the Illinois Secretary of State as an Illinois Foreign LLC.
The use of the term Foreign in this case refers specifically to individual US states.
The US government, including the IRS, considers a Foreign company to be a company that is registered outside
of the United States.
Do I need a lawyer to Form a Foreign LLC in Illinois?
explain
The short answer is no.
The state of Illinois does not legally require a lawyer to form an
Illinois Foreign LLC.
Our detailed
Foreign Qualification page may help you understand some
of the implications of forming an
Illinois Foreign LLC.
However, if there is
anything about forming a Foreign LLC in Illinois
that you're not sure about you should seek the advice of a competent Illinois lawyer, an Illinois accountant,
or both
before you form a Foreign LLC in Illinois.
Once you have made the decision to form a Foreign LLC in Illinois, an Illinois lawyer
can file your documents and act as a middle man for a few hundred dollars an hour; or you can use an online service provider like All Business Documents
to perform these services and
save money that you can use in your new Illinois Foreign LLC.
Do I have to Reserve a Company Name before I Form a Foreign LLC in IL?
explain
You are not legally required to reserve a Company Name for a new Illinois LLC Corporation before you submit your application to Form a Foreign LLC
in Illinois.
The LLC name that you have registered in your home state may or may not be available in Illinois.
In that case you need a different name your Illinois Foreign LLC.
Whether or not you need to reserve a company name for your new Illinois Foreign LLC depends entirely on your business situation.
The Illinois Secretary of State uses LLC names on a first come first served basis.
So if you think that someone may snatch the Company Name that you have in mind, you may want to reserve that Illinois Foreign LLC Name.
What if the Illinois Foreign LLC Name I want is already taken?
explain
If the Name you have chosen for your new Illinois Foreign LLC is already in use by a currently active
Illinois Corporation or LLC then you will have to register a DBA Name with the county recorder in each Illinois county in which you want to do business. "DBA" is an abbreviation for "Doing Business As."
We verify that the Name you have chose for your new Illinois Foreign LLC is available before we submit
your Foreign LLC filing to the Illinois Secretary of State.
If necessary we can register a DBA Name in Illinois for you so that you can open your new Illinois business as quickly as possible.
What do I have to do to Form a Foreign LLC in Illinois?
explain
- Prove that you are registered in a state other than Illinois as a Domestic LLC
- Choose a name for your Illinois Foreign LLC
- File Registration Documents with the Illinois Secretary of State
- Determine how you want your Illinois Foreign LLC to be taxed
- Prove that you are registered in a state other than Illinois as a Domestic LLC
In order to register as a Foreign LLC in the state of Illinois, you must first prove that you are registered in another state as a
Domestic LLC.
You prove this with a Certificate of Good Standing, sometimes referred to as a Certificate of Existence or a Certificate of Fact, from the
state in which you are registered as a Domestic LLC.
Cost of a Good Standing Certificate for your Domestic LLC varies from state to state.
If you already have a Good Standing Certificate from your home state, please note that it must be dated no older than 60 days from the date of your application for
Illinois LLC Foreign Qualification.
If the date on your Good Standing Certificate is older than 60 days then you need to get an updated certificate.
If you get your own Good Standing Certificate you must scan and email or send a copy to us before we submit your application for a
Illinois Foreign LLC.
We can get your LLC Good Standing Certificate from any state - in most states within 2-3 hours.
- Choose a name for your Illinois Foreign LLC
You can use the same name in Illinois that you use in your home state, however, if the name of your Domestic LLC is not available you need to choose another name.
Your Illinois Foreign LLC name can identify the type of products and services your business will provide;
or it may be the name of the founder; or it can be a combination of the two or something else.
In any case, the Illinois Foreign LLC name that you choose must be distinguishable from the name of any other registered Illinois LLC or other
business entity and the name must also be different from any reserved names on record with the state of Illinois.
Your Illinois Foreign LLC name must not imply that it was formed for a purpose other than that stated in the
Articles of Organization for your Domestic LLC and your Illinois Foreign LLC name must not be a name that is likely to mislead the public.
The name of an Illinois Foreign LLC must include the word "Limited Liability Company" or
or the abbreviation "LLC" or "L.L.C.".
It's important to choose a good name for your Illinois Foreign LLC because if you want to change it after you qualify you
will have to file amended documents with the Illinois Secretary of State (and pay a fee).
We will check to make sure that your requested Illinois Foreign LLC name is available and conforms to all state of Illinois
Limited Liability Company naming regulations.
- File Registration Documents with the Illinois Secretary of State
In order to Qualify as a Foreign LLC in Illinois you must file Registration Documents with the Illinois Secretary of State.
In Illinois the registration documents are named "Application for Admission to Transact Business".
The registration documents must include certain specific information about your Illinois business.
If the LLC Registration Documents do not conform exactly to state of Illinois Foreign LLC requirements they will be rejected. 
If you need to change any of the information on your registration documents after your Illinois Foreign LLC has been approved,
you may amend the registration documents for your Illinois Foreign LLC but you will have to pay a fee to the state of Illinois in order to make the changes official.
- Determine how you want your Illinois Foreign LLC to be taxed
The Illinois Corporate Income Tax Rate is 9.5%.
You may choose that your Illinois Foreign LLC is to be taxed as a C Corporation or S Corporation.
A C Corporation is what you may think of as a traditional Corporation like General Electric or Ford.
C Corporations pay a Corporate income tax to the state if that state taxes Corporations.
You may choose to have your Illinois Foreign LLC taxed as a S Corporation.
S Corporations "pass through" all corporate profits to the shareholders (owners) who then pay tax at their applicable personal rate.
S Corporations do not pay any Illinois Corporate Income Tax.
Illinois Corporations pay 7.0% income tax and 2.5% property replacement tax.
Illinois Corporations are also subject to a Franchise Tax.Â
The Franchise Tax is based on the share of a corporation’s paid-in capital in the state of Illinois.Â
The initial Illinois Corporation Franchise Tax is imposed at the beginning of the corporation’s first year doing business in the state.Â
The initial Illinois Corporation Franchise Tax rate is 0.15% of the share of paid-in capital in Illinois.Â
The minimum Illinois Corporation Franchise Tax is $25.00 and the maximum is $2 million.Â
After a corporation’s first year, the Illinois Corporation Franchise Tax is due annually at a rate of .10%.
If you form a Single Member Illinois Foreign LLC and do not specify to the IRS how you want to be taxed your Single Member Illinois Foreign LLC
will be taxed as a Sole Proprietorship.
If you form a Multiple Member Illinois Foreign LLC and do not specify to the IRS how you want to be taxed your Multiple Member Illinois Foreign LLC
will be taxed as a Partnership.
Click here for more Illinois Corporate Tax Information .
If you choose to be taxed as an S Corporation, we can prepare the S Corporation election form for your Illinois Foreign LLC and include it with
your final Foreign LLC documents.
What do I have to do to after I Form an Illinois Foreign LLC?
explain
- Obtain Business Licenses from the cities and counties in which you plan to do business
- File the required reports for your Illinois Foreign LLC
- Keep proper records of your Illinois Foreign LLC on file
- Pay your taxes to the state of Illinois
- Obtain Business Licenses from the cities and counties in which you plan to do business
Note that forming an Illinois Foreign LLC doesn't take the place of obtaining a local business license, tax
registration certificate, or other required business permits.
An Illinois Foreign LLC merely creates an ownership structure that limits the owners' personal liability.
You may still need to take care of getting set up to do business with your local government.
Depending on the nature of the business and the location of your Illinois Foreign LLC within Illinois you may need to get one or more local
business licenses or permits.
The business licenses or permits that are required for your Illinois Foreign LLC vary depending on your business activities
and the specific locations within the state of Illinois in which you want to conduct business.
If your Illinois Foreign LLC will be selling products in Illinois you may be required to obtain a Reseller's Permit from the appropriate
Illinois state agency.
If your Illinois Foreign LLC will be selling products in Illinois you will also be responsible for all applicable local and state of Illinois
sales taxes if there are any.
We have the expertise to find out exactly which state and local permits that you need for your specific business.
- File the required reports for your Illinois Foreign LLC
The Illinois Annual Report includes basic information about your Illinois Foreign LLC including information on your business location as well as the names of the Officers and Directors.
Failure to submit a properly completed Illinois Annual Report to the Illinois Secretary of State on or before the
due date may subject the Illinois Foreign LLC to being administratively dissolved in the state of Illinois or having its authority to
transact business in the state of Illinois revoked by the Illinois Secretary of State.
Penalties may accrue if you fail to file any Illinois Foreign LLC Annual Report to the Illinois Secretary of State by the due date.
- Keep proper records of your Illinois Foreign LLC on file
Keep the following records on file and available at the principal business office of your Illinois Foreign LLC:
- Names and addresses of all Members and Managers of the Illinois Foreign LLC
- Foreign LLC formation documents and any Amendments to them
- Illinois Foreign LLC Operating Agreement and any Amendments to them
- Copies of any LLC Resolutions which have been adopted by the Illinois Foreign LLC
- Copies of all tax returns and Annual Reports for the Illinois Foreign LLC for the last 3 years
- Pay your taxes to the state of Illinois
Foreign LLCs that either do business in the state of Illinois or that derive income from sources within the state of Illinois are subject
to Illinois and federal tax laws.
If you are engaged in intrastate business and derive income from other states besides Illinois, you must allocate the amount of income derived
from the state of Illinois in order to determine your Illinois state taxes.
What information do I need in order to Form a Foreign LLC in Illinois?
explain
In order to Form a Foreign LLC in Illinois you'll need the following information about your LLC:
- The name of your new Illinois Foreign LLC along with your second choice of a name in case the name that you want is not available
- Physical address of the Foreign LLC office in Illinois (not a PO Box)
- A description of the nature of the business you are planning to operate with the Illinois Foreign LLC
- A good standing certificate from your home state no older that 60 days
- Whether the Illinois Foreign LLC will be managed by LLC Members or Managers
- When the Illinois Foreign LLC will start and when it will cease to exist (normally the Foreign LLC starts on the date the application is filed and will exist perpetually)
Remember -
ALL the information that you provide when you Form a Foreign LLC in Illinois becomes part of the public record.
Our data entry forms include the
absolute minimum amount of information that is required in order to Form a new Foreign LLC in Illinois.
How long does it take to Form a Foreign LLC in Illinois?
explain
Processing times for new Illinois Foreign LLC applications vary depending on the work load of the
Secretary of State's staff.
We've found that normal processing of new Illinois Foreign LLC applications takes the state around 4 weeks.
Add 2-3 days for the time period for shipping the final documents by mail.
Choosing our Express Mail option can shave a couple of days off the total processing time for your new Illinois Foreign LLC.
PLEASE NOTE: WE CANNOT GUARANTEE ILLINOIS SECRETARY OF STATE PROCESSING TIMES.
The Illinois Secretary of State reserves the right to extend expedite periods in time of extreme volume, staff shortage or
equipment malfunction.
We are dependent on, and have no control over, the staff and systems of the Illinois Secretary of State.
In our experience 4 weeks is the time it
usually takes the Illinois Secretary of State to process
a new Illinois Foreign LLC application.
We get your Illinois Foreign LLC application to the IL Secretary of State ASAP.
Once it is at the state we have no control over the new Illinois Foreign LLC application process.
How much does it cost to Form a Foreign LLC in Illinois?
explain
The state of Illinois charges $200.00 to Form a Foreign LLC in IL. Also add the cost of a good standing certificate from your home state.
If you choose All Business Documents to help you Form your Foreign LLC in Illinois our processing fees are $145.00.
This includes:
- Same day processing in of your new Illinois Foreign LLC order
- IL Name Check and Reservation
- Prepare Application for Admission to Transact Business
- File Formation Documents with the Illinois Secretary of State
- Certified Copies of Formation Documents
- Illinois Foreign LLC Checklist
- Priority Mail Delivery
- Unlimited Customer Support
ILLINOIS FOREIGN QUALIFICATION COST ESTIMATOR
Our IL Foreign Qualfication Services include:
(These services are included in our processing fees)
Optional Illinois Foreign Qualification Services
(Choose options, cost is updated automatically)
-
Expedited Service - $350
explain
Normal processing time for a new Illinois Foreign LLC is 4 weeks.
For an additional $350 we can submit your Foreign LLC filing to the Illinois Secretary of State for guaranteed expedited 24 hours processing.
This is the time by which the Illinois Secretary of State will either approve or deny the Foreign LLC application.
Illinois Foreign LLC applications must be received by the Secretary of State before noon Illinois time for the process to start that day.
Another way to expedite your order is to choose the Express Mail option.
The Express Mail option can cut the document delivery time in half.
- Express Mail - $35
explain
If you really need your original approved Application for Admission to Transact Business in your hands quickly, the
Express Mail option can cut the delivery time in half.
The Express Mail option has no effect on the Illinois Secretary of State's processing time. For the quickest turn-around time also choose the Expedited Service option.
-
S Corporation Election - $50
explain
S Corporations are taxed differently than C Corporations.
With an S Corporation, business profits may be "passed through" directly to the shareholders.
This avoids the double tax on both corporate and shareholder profits.
S Corporations do not pay any Illinois Corporate Income Tax.
We can prepare the S Corporation Election form for you and include it with your final Foreign LLC documents pakage.
-
IL Registered Agent - $135
explain
Every Illinois Foreign LLC is required to have an address within the state of Illinois where
official and legal correspondence can be delivered.
The individual or company that is registered with the state of Illinois to receive all correspondence
on behalf of the Foreign LLC is called a Registered Agent.
You may act as your own Registered Agent, however, many Foreign LLCs hire a Registered Agent because they don't have a physical address within
Illinois or to provide a distinct level of privacy.
We can act as your Illinois Foreign LLC Registered Agent.
This is an annual service.
We will forward all correspondence to you and will remind you when it is time to renew your IL Registered Agent services.
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IL Good Standing Certificate - $58
explain
An Illinois Good Standing Certficate is proof of the existence of your new Illinois Foreign LLC.
The Certificate is issued by the Illinois Secretary of State and is proof that your IL Foreign LLC is not behind on any
of its Illinois Secretary of State Corporate obligations.
An Illinois Good Standing Certificate is often required for loans, to apply for business licenses, or for tax or other business purposes
in the state of Illinois or in any other state.
We can get your Illinois Good Standing Certificate immediately after the Illinois Secretary of State has approved your Foreign LLC filing.
-
Federal EIN - $65
explain
An FEIN is like a Social Security Number for your Illinois Foreign LLC.
We can get your FEIN on the same day that your Application for Admission to Transact Business are approved by the Illinois Secretary of State.
You can get your FEIN before your articles are approved by the Illinois Secretary of State but it's a good idea to wait until
after approval.
Your filing may be rejected or the Foreign LLC name that you want may not be approved.
Changing information on an FEIN filing is not a trivial exercise with the IRS.
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Foreign LLC Kit and Seal - $99
explain
While you're not required to have a Foreign LLC Kit and Seal for your new Illinois Foreign LLC they do come in handy.
The IL Foreign LLC Kit consists of a beautiful customized binder, stock certificates, a stock ledger
and your custom Foreign LLC Seal.
The Foreign LLC Seal is used to emboss important company documents, such as stock certificates.
The binder also includes dividers so you can use it for all of your Illinois Foreign LLC record keeping.
-
Business License Research - $175
explain
Most new Illinois Foreign LLCs are required to get some kind of state, regional or local permits or business licenses.
The task to figure out exactly what you need can be daunting.
We can determine exactly which forms you need to fill out, fill them out for you and file the forms with the appropriate government agency
where possible.
GOOD STANDING CERTIFICATE
You will need a Good Standing Certificate from your home state that is no older than 60 days.
Choose your home state from the list, the price of the certificate below will be updated automatically.