Determining Business Activity in Illinois
To explain whether you need to qualify your business in Illinois, review what does not constitute doing business. Some courts have said doing business means fairly permanent and continuous business activity, not just occasional.
For more insight, look at activities that don’t qualify as intrastate business. The Business Corporation Act of 1983 and LLC Act say some activities don’t constitute doing business in Illinois. If your corporation or LLC only settles, defends, or maintains any proceeding, you don’t need to qualify.
In general, what constitutes doing business revolves around the ability to sue and be sued. That is why there is a requirement to maintain a registered agent in Illinois for accepting service of process and correspondence.
Registering a Business in Illinois
To register your business in Illinois, first create a plan and decide if you will run under your legal name or an assumed business name. Then file an assumed business name certificate with your county clerk’s office and run a newspaper announcement. Finally, register for applicable business taxes with the Illinois Department of Revenue.
Steps for Registering a Small Business in Illinois
This step-by-step guide to the Illinois business registration process will show you what to do.
Illinois is the sixth-largest state in the US and home to Chicago. Thanks to its economy, entrepreneurs flock there—and 99% of businesses are small. So, if you have an idea, Illinois might be just the place. Before you set up shop, you’ll need more than an idea and plan. You need to settle on a name, select a structure, learn about taxes, and more. Below, you’ll find a guide to help you set up quickly and compliantly.
- Name your business: First, a great new business needs a name.
- Appoint a registered agent: This is the person who will accept legal documents. It can be an Illinois resident or a company legally authorized there.
- Register the business: If you’re a sole proprietor using your legal name, you won’t need to. However, if you have a partnership, LLC, or corporation, you will. You can register your name with your county clerk’s office.
To register a business in Illinois:
1) Electronically register through MyTax Illinois
2) Complete and mail Form REG-1
3) Visit one of the IDOR offices
To register your business, determine the business name, visit your County Clerk’s Office website, and write a business plan. Also, consider state and local rules, and insurance for asset protection. Registering a legal entity costs $150. Assumed names cost $5-$50 depending on the county. To file incorporation articles electronically, visit ilsos.gov/corparticles. If it’s an LLC, meet state naming and formation requirements. Partnership registration forms must be obtained, completed, and submitted in person or by mail.