Cost and Paperwork
In Illinois, filing your Articles of Incorporation with the Secretary of State will cost $150. This price remains the same regardless of whether you file by mail, online, or in person.
To file the Articles of Incorporation for a corporation in Illinois, submit your formation documents to the Secretary of State along with the filing fee. The chosen registered agent must have an Illinois physical street address.
Some costs to form a corporation in Illinois include:
- Initial Filing Fee: $150
- Annual Franchise Tax: 0.15% of paid-in capital the first year, then 0.10% each following year
- Minimum Franchise Tax: $25
- Personal Property Replacement Tax: 1.5% of net income
Before registering a business in Illinois, make sure your business name is available by checking the Secretary of State’s database.
Forming a Corporation vs. LLC
LLCs benefit from “pass-through” taxation, less regulations, and a cheaper startup cost while corporations attract more investment. Forming a Professional Corporation in Illinois can take several weeks and offers limited liability protection.
To form an LLC in Illinois costs $150 to file online. Employing a Registered Agent helps keep your firm compliant and informs you of critical filing dates.
Businesses in an Illinois enterprise zone may get tax incentives. For larger businesses, an Illinois corporation may be best as they can buy and trade stock and offer flexibility on profits.
Steps to Incorporation
- Create a plan.
- Check zoning.
To have an Illinois corporation, an agent receives documents for it. The annual franchise tax is based on net worth to do business there.
When starting a business in Illinois, you’ll need to:
- Create a business plan.
- Check zoning requirements.
The step-by-step business registration process in Illinois involves:
- Choosing a unique name.
- Appointing a registered agent.
- Filing paperwork and paying fees.
Additional Considerations
How long does it take to incorporate in Illinois? Regular processing of Articles of Incorporation takes about four weeks, plus additional days for mailing the final documents.
Do I need a license to do business in Illinois? You may need additional licenses or permits depending on your industry and location.
In conclusion, Illinois offers opportunities for starting new businesses. This guide covered key steps like forming a legal entity, obtaining licenses, and filing registrations.