HOW TO INCORPORATE IN ILLINOIS ONLINE
Do I need a lawyer to Incorporate in Illinois?
explain
The short answer is no.
The state of Illinois does not legally require a lawyer to form an
Illinois Corporation.
Our detailed
Incorporation Information page may help you understand some
of the implications of forming an
Illinois Corporation.
However, if there is
anything about
Incorporating 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
Incorporate in Illinois.
Once you have made the decision to
Incorporate 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 Corporation.
Do I have to Reserve a Company Name before I Incorporate in Illinois?
explain
You are not legally required to reserve a Company Name for a new Illinois Corporation before you submit your application to Incorporate in
Illinois.
Whether or not you need to reserve a company name for your new Illinois Corporation depends entirely on your business situation.
The Illinois Secretary of State uses 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 Company Name.
What if the Illinois Corporation Name I want is already taken?
explain
If the Name you have chosen for your new Illinois Corporation is already in use by a currently active
Illinois Corporation or LLC, and you still want to use that Corporation Name, 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 Corporation is available
before we submit
your Incorporation 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 Incorporate in Illinois?
explain
8 things you have to do in order to Form a LLC in Illinois.
- Choose a name for your Illinois Corporation
- Select an official address and a Registered Agent for your Illinois Corporation
- Choose a Board of Directors for your Illinois Corporation
- Decide who will be Officers for your Illinois Corporation
- Determine how you want your Illinois Corporation to be taxed
- File Articles of Incorporation with the Illinois Secretary of State
- Get a Federal Employer Identification Number (FEIN) for your Illinois Corporation
- Issue Stock Certificates to the Initial Shareholders
- Choose a name for your Illinois Corporation
Your Illinois Corporation 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 Corporation name that you choose must be distinguishable from the name of any other registered Illinois Corporation or other
business entity and the name must also be different from any reserved names on record with the state of Illinois.
Your Illinois Corporation name must not imply that it was formed for a purpose other than that stated in your
Articles of Incorporation;
and your Illinois Corporation name must not be a name that is likely to mislead the public.
The name of an Illinois Corporation must include the word "Corporation" or
"Incorporated" or an abbreviation of one of these words.
It's important to choose a good name for your Illinois Corporation because if you want to change it after you incorporate you
will have to file amended Articles of Incorporation with the Illinois Secretary of State (and pay a fee). We will:
- Check to make sure that your Illinois Corporation name is available
- Make sure your Illinois Corporation name conforms to state of Illinois regulations
- Reserve your Illinois Corporation name with the Illinois Secretary of State
- Select an official address and a Registered Agent for your Illinois Corporation
Every Illinois Corporation must have an address that is physically located in the state of Illinois.
This address is "registered" with the Illinois Secretary of State.
The Registered Address is 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 Illinois
Corporation is called a "Registered Agent".
You may act as your own Registered Agent, however, many Illinois Corporations hire a Registered Agent because they don't have a physical
address within the state of Illinois or to provide a distinct level of privacy.
We can act as the official Registered Agent for your Illinois Corporation.
- Choose a Board of Directors for your Illinois Corporation
All Illinois Corporations are required to have a Board of Directors.
Directors are the people who will set policies for your Illinois Corporation and manage the business and its resources.
In the majority of small corporations directors are the owners.
The Articles of Incorporation or Corporate Bylaws may define specific qualifications for Directors.
The Board of Directors is responsible for creating rules, approving budgets and distributing profits to shareholders.
One of the most important duties of the Board of Directors is electing Officers for your Illinois Corporation.
The same person may be a Director and an Officer at the same time.
Directors need not be residents of the state of Illinois or shareholders of the Illinois Corporation unless the Articles of Incorporation
or Bylaws require it.
Normally Directors for your Illinois Corporation are elected for a term of one year.
Elections are held at the annual meeting of Shareholders.
The Directors serve until the next annual Shareholders meeting.
- Decide who will be Officers for your Illinois Corporation
The Board of Directors elects Officers for your Illinois Corporation in accordance with the Corporate Bylaws and Articles of Incorporation.
Officers serve at the pleasure of the Board of Directors of the Illinois Corporation.
Officers handle the day to day operation of the Illinois Corporation.
Unless specifically prohibited by the Corporate Bylaws or Articles of Incorporation, in a Illinois Corporation
the same person may hold more than one Corporate Office at the same time.
However, there are certain legal affairs in which the same person cannot act in more than one capacity.
One Officer - usually the Secretary - is given responsibility for preparing Minutes of Directors and Shareholders meetings
and for authenticating records for the Illinois Corporation.
- Determine how you want your Illinois Corporation to be taxed
The Illinois Corporate Income Tax Rate is 9.5%.
You may form an S Corporation in Illinois.
S Corporations may "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.
If you choose to be taxed as an S Corporation, we can prepare the S Corporation election form for your Illinois Corporation and include it with
your Incorporation documents.
Click here for more
Illinois Corporate Tax Information
- File Articles of Incorporation with the Illinois Secretary of State
In order to form a Corporation in Illinois you must file Articles of Incorporation with the Illinois Secretary of State.
The Articles of Incorporation must include certain specific information about your Illinois business. If the Articles do not conform exactly to state of Illinois requirements they will be rejected.
You may subsequently amend the Articles of Incorporation for your Illinois Corporation but you will have to pay a fee to the state of
Illinois in order to make the changes official.
- Get a Federal Employer Identification Number (FEIN)
A Federal Employer Identification Number, also known as a Federal Tax Identification Number, is used by the IRS to identify a
business entity.
An FEIN is like a Social Security Number for your Illinois Corporation.
All Illinois Corporations are required to have an FEIN.
We can obtain an FEIN for your Illinois Corporation.
- Issue Stock Certificates to the Initial Shareholders
Corporate stock is evidence of ownership of a Illinois Corporation.
When you form your Illinois Corporation, you will need to determine what type of stock and the number of shares of each type that
you want to authorize.
You do not have to sell the number of shares that are authorized.
Many small Illinois Corporations hold 100% of the shares.
Stockholders in a Illinois Corporation are entitled to voting rights or dividends of the Corporate profits or both.
Whoever owns over 50% of the stock of the Illinois Corporation is able to make all Corporate business decisions.
Illinois Corporations usually hold at least 51% of the corporate stock in order to retain control of the Illinois Corporation.
What do I have to do after I form my Illinois Corporation?
explain
6 things you have to do after you Form a LLC in Illinois.
- Conduct an initial Meeting of the Board of Directors and adopt Corporate Bylaws
- Open a Business Bank Account in Illinois for your IL Corporation
- Obtain Business Licenses from the cities and counties in which you plan to do business
- Hold Meetings of Shareholders and Directors of EACH year
- File the required Illinois Professional Corporation reports
- Keep proper records of your Illinois Professional Corporation on file
- Conduct an initial Meeting of the Board of Directors and adopt Corporate Bylaws
The Board of Directors holds an initial meeting to elect Officers, authorize issuance of stock and adopt the Corporate Bylaws.
Bylaws are the internal rules of your Illinois Corporation.
They are adopted by the Board of Directors and vary widely from Corporation to Corporation.
Commonly bylaws include the number of seats on the board of directors; how Directors are elected; how meetings of Directors and
Shareholders are to be conducted; what Officers the Illinois Corporation will have and a description of each of their duties.
As your company grows over time, you may amend your bylaws as necessary.
Bylaws generally cannot be amended by the Board of Directors unilaterally.
A vote by the majority of Stockholders of the Illinois Corporation is usually required to amend the Corporate Bylaws.
Bylaws may include any rules for managing the business and conducting corporate affairs.
Almost anything may be written into the Bylaws, however, the Bylaws must not be in violation of any federal or Illinois law or
the Illinois Corporation's Articles of Incorporation.
A copy of the Corporate Bylaws should be maintained at the Corporation's principal Illinois office.
- Open a Business Bank Account in Illinois
It's very important that you have a separate business bank account for your Illinois Corporation.
Mixing personal and business funds can get you in a lot of trouble with the tax man down the line.
It's a good idea to contact the bank before you open a business bank account.
Specific requirements vary from bank to bank.
- Obtain Business Licenses from the cities and counties in which you plan to do business
Note that forming an Illinois Corporation doesn't take the place of obtaining a business license, tax
registration certificate, or other required business permits.
An Illinois Corporation 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 Corporation you may need to get one or more city
business licenses or permits.
The business licenses or permits that are required for your Illinois Corporation 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 Corporation 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 Corporation 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 can research and prepare the necessary forms for your required business licenses and permits and include
them in your Illinois Incorporation package.
- Hold Meetings of Shareholders and Directors of each year
Every Illinois Corporation must hold corporate and shareholder meetings, at least annually, and must keep minutes of each meeting
on file.
A copy of the minutes is evidence that the meetings took place and includes all resolutions that were adopted.
The minutes of each meetings must be open for inspection by any Shareholder or Director.
This meeting requirement is often overlooked and comes into play when the Illinois Corporation is challenged for any reason.
Keeping proper meeting minutes and documenting resolutions made and approved by the Directors is a formality that could save your
Illinois Corporation a lot of potential trouble.
We can transcribe the minutes of any meeting of your Illinois Corporation into a form that complies with all
state of Illinois requirements.
- File the required Illinois Professional Corporation reports
The Illinois Secretary of State does not have any Initial Corporation Annual Report requirements for new IL Corporations.
Every Illinois Corporation must file an Annual Report with the Illinois Secretary of State EACH year.
The Illinois Corporation Annual Report is due at the IL Secretary of State in the month previous to the anniversary month in which the Illinois Secretary of State initially approved the Articles of Incorporation for the IL Corporation.
For example, if the Illinois Corporation was approved by the Illinois Secretary of State on April 15, the next IL Corporation Annual Report would be due by March 31 of the following year.
If an Illinois Corporation does not submit its Annual Report to the IL Secretary of State by the due date then the Illinois Corporation will have to pay a late fee that is based on the annual franchise tax of the Illinois Corporation; and may eventually be administratively dissolved by the Illinois Secretary of State.
We can fill out and file any Annual Report with the Illinois Secretary of State after your Illinois Professional Corporation gets going.
- Keep proper records of your Illinois Corporation on file
Keep the following records on file and available at the principal business office of your Illinois Corporation:
- Names and addresses of all Directors and Officers of the Illinois Corporation
- Articles of Incorporation for the Illinois Corporation and any Amendments to them
- Corporate Bylaws for the Illinois Corporation and any Amendments to them
- List of current shareholders of the Illinois Corporation.
If shareholders change, keep a record of old shareholders and how stock was transferred.
- Minutes of all Meetings of Shareholders and Directors
- Copies of any Corporate Resolutions which have been adopted by the Illinois Corporation
- Copies of all tax returns and Annual Reports for the Illinois Corporation for the last 3 years
What information do I need in order to Incorporate in Illinois?
explain
In order to Incorporate in Illinois you'll need the following information about your new Company:
- The name of your new Illinois Corporation along with your second choice of a name in case the name that you want is not available
- Physical address of the Corporation office in Illinois (not a PO Box)
- Name and address of your Illinois Registered Agent (not a PO Box)
- A description of the nature of the business you are planning to operate with the Illinois Corporation
- Names and addresses of the initial Directors of the Illinois Corporation
- The number of shares of stock that the Illinois Corporation will be authorized to issue
- The par value of the shares which the Illinois Corporation will be authorized to issue
Remember -
ALL the information that you provide when you Incorporate 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 Corporation in Illinois.
How long does it take to Incorporate in Illinois?
explain
Processing times for new Illinois Corporation applications vary depending on the work load of the
Secretary of State's staff.
We've found that normal processing of new Illinois Articles of Incorporation 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 Illinois LLC.
PLEASE NOTE: WE CANNOT GUARANTEE ILLINOIS SECRETARY OF STATE PROCESSING TIMES.
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 Corporation application.
We get your Illinois Corporation application to the IL Secretary of State ASAP.
Once it is at the state we have no control over the new Illinois Corporation application process.
Are there any Expedited Processing Options for new IL Corporation Filings?
explain
For an additional $150 we can submit your new Corporation filing to the Illinois Secretary of State on the same day that you place your order for expedited 24 hours processing.
How much does it cost to Incorporate in Illinois?
explain
The state of Illinois charges $311.25 to Incorporate in IL.
This is the cost of filing and getting a Certified Copy of your Articles of Incorporation from the IL Secretary of State.
If you choose All Business Documents to help you Incorporate in Illinois our processing fees are $125.00.
We start processing your new Illinois Corporation order as soon as we get it.
Total cost includes:
- IL Name Check and Reservation
- Prepare Articles of Incorporation
- File Articles of Incorporation with the Illinois Secretary of State
- Certified Copies of Articles
- Illinois Corporation Checklist
- Priority Mail Delivery
- Unlimited Customer Support
What is a Illinois Professional Corporation?
explain
Generally, if you are required to obtain some kind of license before you can market your skills in the state of Illinois then you will
most likely need to form a
Illinois Professional Corporation.
Attorneys, architects, engineers, public accountants, nurses and physicians, among others, may require registration as a Professional
Corporation with the Illinois Secretary of State.
Depending on exactly what it is that you want to do in Illinois, approval from a specific Illinois state agency or board may be required before the IL Secretary of State will approve a new
Illinois Professional Corporation filing.
This could add to the total processing time for a new Illinois Corporation.
What is Illinois Foreign Corporation Qualification?
explain
You want to do business in the state of Illinois but are registered as a Domestic Corporation in another state.
In order to legally conduct business in the state of Illinois you must register with the Illinois Secretary of State as
an Illinois Foreign Corporation.
The process of registering as a Foreign Corporation in the state of Illinois is called Illinois Corporation Foreign Qualification.
The process of Illinois Corporation Foreign Qualification is similar to the process of forming a Domestic Corporation in the state of Illinois.
Your original formation documents (usually called Articles of Incorporation) and Corporate Bylaws apply to your Illinois Foreign Corporation.
The Board of Directors and Officers of your Domestic Corporation have the same roles in the Illinois Foreign Corporation.
ILLINOIS ONLINE INCORPORATION COST ESTIMATOR
Our IL Incorporation Processing Services include:
(These services are included in our processing fees)
Optional Illinois Incorporation Services
(Choose options, cost is updated automatically)
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Expedited Service explain
Normal processing time for a new Illinois Corporation is 4 weeks.
For an additional $150 we can submit your new Corporation filing to the Illinois Secretary of State on the same day that you place your order for expedited 24 hours processing.
This is the time by which the Illinois Secretary of State will either approve or deny the Illinois Incorporation application.
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 Articles of Incorporation 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.
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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 Incorporation documents.
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IL Registered Agent - $135
explain
Every Illinois Corporation 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 Corporation is called a Registered Agent.
You may act as your own Registered Agent, however, many Corporations 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 Corporation 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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Customized Bylaws - $75
explain
Bylaws are the rules by which your Illinois Corporation must operate.
Every new Illinois Corporation requires bylaws.
Almost anything may be written into the bylaws, however, the bylaws must not be in violation of any law or
your Illinois Corporation's Articles of Incorporation.
We can create customized initial bylaws for your Illinois Corporation that are based on your specific business requirements.
As your company grows over time, you may amend your bylaws as necessary.
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IL Good Standing Certificate - $58
explain
An Illinois Good Standing Certficate is proof of the existence of your new Illinois Corporation.
The Certificate is issued by the Illinois Secretary of State and is proof that your IL Corporation 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 Articles of Incorporation.
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Federal EIN - $65
explain
An FEIN is like a Social Security Number for your Illinois Corporation.
We can get your FEIN on the same day that your Articles of Incorporation 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 Corporation 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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Corporation Kit and Seal - $99
explain
While you're not required to have a Corporation Kit and Seal for your new Illinois Corporation they do come in handy.
The IL Corporation Kit consists of a beautiful customized binder, stock certificates, a stock ledger
and your custom Corporation Seal.
The Corporation 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 Corporation record keeping.
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Business License Research - $175
explain
Most new Illinois Corporations 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.