Moving Your Business LLC or Corporation to Illinois

Introduction – Why Illinois?

If you have already established your company and are searching for a business friendly destination that will also enable you to reach out to international markets then Illinois is just the right destination. The state provides a bounty of resources along with support to both domestic and foreign entities. Let us take a look at some of the top benefits that drive entrepreneurs to move their corporations or LLC’s to this state.

World-class infrastructure

Illinois has now received the status of being a top destination where transportation and logistics infrastructure is concerned. The state has a program called the Rebuild Illinois capital program and this allocates $33.2 billion directly towards strengthening the transportation infrastructure. Hence, it is not surprising that moving your business to Illinois means being able to reach 83 percent of the continental U.S. within 48 hours. Today, one of the most connected airports in the world is Chicago’s O’Hare. This is the only state with all seven Class one railroads. If you transfer LLC to Illinois and want to deliver goods to consumers nationwide as well as beyond then this state’s infrastructure and connectivity will make it possible. Today, the size of the Illinois freight and logistics market is $73.06 billion.

Business minded

One of the reasons why entrepreneurs opt for entity domestication in Illinois is because the state has a vibrant business climate. The overall cost of conducting business is low and so is the personal income tax. The commercial energy rates are also quite low thus helping to make your business sustainable. The state is home to 14 Global 500 and 32 Fortune 500 companies. Illinois is gradually becoming quite competitive especially when it comes to new and emerging industries. Today, it stands out as the fifth-largest economy because of the technology and innovation-driven industries. The state understands what a business needs and has been striving to create an environment that helps small and medium-sized enterprises to grow and expand.

Innovation and technology leader

Technology drives innovation, which further drives business growth. Illinois is a $1.1 trillion economy and is expected to grow even further towards becoming a technology and innovation leader. Relocating a business to Illinois means that you will have access to –

• Innovation Network Hubs
• Manufacturing Excellence Centers
• Incubators
• Co-Working Spaces
• Accelerators
• Technology Parks
• Business Innovation and Growth Center

Great Quality of life

Business is not always about work only, but also about quality of life. You would not want to transfer an LLC to Illinois or a corporation if the quality of life was not good. It plays a subtle role in the success of any company or establishment. Thankfully, the state of Illinois is one destination that seems to have it all. The state offers quality education and healthcare for families, outdoor amenities like State Parks for Hiking, Biking, Fishing, and Camping, Designated arts & culture sites, and venues for entertainment.

Targeted Industries

Industries are at the heart of any economy; the story is the same for Illinois. If you plan on moving your business to Illinois, you can choose to be a part of the diverse industry cluster in this state. According to the Illinois Department of Commerce, six industries are focusing on targeted growth, and they are –

• Advanced Manufacturing
• Agribusiness and Food Processing
• Transportation, Distribution, and Logistics
• Life Sciences and Bio-Technology
• Business and Professional Services
• Energy

Business-friendly ecosystem

When starting a new business or moving a company, the location is paramount. At the heart of a location is the business climate. Some destinations have a pro-business climate, while others may not be able to fulfill all your requirements. So, when you think of relocating a business to Illinois, you can capitalize on the state’s central location. The state’s distribution and logistics infrastructure will be a boon in disguise if you are in the manufacturing industry or need to move goods. Entity domestication in Illinois will give you access to different types of grants, financial incentives, tax credit programs, industry-based incentives, and more. You will have easy access to some of the brightest minds in the nation. You will be able to employ an experienced and well-educated workforce.

Steps to Move Corporation to Illinois

If you have decided to move your business to Illinois, there are several ways you can do so. You can close your existing business and start a new business in this state. Alternatively, you can operate your company in the home state and Illinois. While moving a corporation, you may have questions like whether Illinois allows domestication and the processes for the same. So, let us look at the various relocation options in detail.

Register as a foreign Corporation

The first option for moving a corporation to Illinois is through foreign qualification. This option is best for those who want to operate their corporation in multiple states, including their home state (state of incorporation). The 2024 Illinois Compiled Statutes govern the various requirements related to foreign qualification, Chapter 805 – Business Organizations, 805 ILCS 5/ – Business Corporation Act of 1983, Article 13 – Foreign Corporations. Relocating a business to Illinois through foreign qualification includes the following steps:

• Designate an Illinois registered agent for handling service of process according to 805 ILCS 5/13.15
• Conduct name availability search for an existing name. If the current name is unavailable, then file the Certificate of Assumed Name with the county clerk
• File the Application for Authority to Transact Business in Illinois (Form BCA 13.15) according to the provisions of 805 ILCS 5/13.05
• You will also need to submit a certified copy of Articles of Incorporation from the home state

Do you want to relocate to Illinois as a foreign corporation?

Convert a Foreign Corporation to an Illinois Entity

The Illinois Entity Omnibus Act established on July 1, 2018, that it is possible to authorize entity conversions and domestications in this state. Moving your business to Illinois as a foreign company through conversion will help such a company become an Illinois entity of a different type, e.g., a New York corporation can be converted to an Illinois limited liability partnership. It is important to remember that this conversion will be possible only if it is authorized by the foreign jurisdiction. If you opt for this method then you will need to submit a plan of conversion approved by the home state or state of incorporation. This will be followed by a Statement of conversion, which has to be filed with the secretary of state.

Dissolve home Corporation and establish a new Corporation in Illinois

Moving a corporation to Illinois is also possible through another way process wherein you will need to dissolve your existing corporation. You will need to dissolve your corporation in the home state and apply for new incorporation in Illinois. There are some general dissolution procedures applicable in all states and they are:

• Approval of dissolution of a corporation by incorporators, directors, or shareholders
• Filing Articles of dissolution in the home state
• File any federal, state, and local taxes and claims outstanding
• If applicable, publication of notice of dissolution
• Wind up business affairs in the home state like canceling of business licenses and permits

• Appoint an Illinois registered agent for service of process
• Identify and reserve a business name using the Application for Reservation of Name (Form BCA-4.10)
• File Articles of Incorporation
• Prepare bylaws for Illinois Corporation
• Apply for relevant state and local business licenses and permits

Incorporate in Illinois Today!

Steps to Move an LLC to Illinois

Relocating your LLC to Illinois is a great idea but it is also important to identify the various options available to make this happen. Illinois is a state with business friendly laws and mindset that is always striving to help you achieve growth. However, you may also have questions regarding relocation – does Illinois allow domestication? So, let’s look at the different options for moving your business to Illinois.

Register as a foreign LLC

If you have already formed a limited-liability company in another state but want to expand your operations in Illinois, then one of the primary ways is through foreign qualification. This will be governed by 2024 Illinois Compiled Statutes, Chapter 805 – Business Organizations, 805 ILCS 180/ – Limited Liability Company Act, Article 45 – Foreign Limited Liability Companies. When you transfer LLC to Illinois as a foreign entity, you can operate your company in the home state (state of registration) and Illinois. The process for foreign qualification will include –

• Hire and maintain an Illinois registered agent for handling service of process under 805 ILCS 180/45-5
• You can keep the existing name of your foreign LLC only if it is available. If the name is unavailable, you can choose a DBA by filing the Certificate of Assumed Name with the county clerk’s office.
• Get the authority necessary to transact business in this state by filing the Application for Admission to Transact Business (Form LLC 45.5)
• To transfer an LLC to Illinois, you will also need to submit a Certificate of Existence, also known as a Certificate of Good Standing issued by the home state

Do you want to move your LLC to Illinois through foreign qualification?

Convert a Foreign LLC to an Illinois entity

If you are considering relocating a business to Illinois, you can choose the entity conversion or the entity domestication option. These methods were introduced through the Illinois Entity Omnibus Act on July 1, 2018. If you opt for conversion, this will help a foreign company become a different type of Illinois entity, e.g., a California LLC can be converted to an Illinois Corporation. This conversion is possible only if your home state or jurisdiction authorizes it. You must approve a conversion plan from the home state and then submit a Statement of Conversion.

Dissolve Home LLC and form a new LLC in Illinois

There is a third option for moving your business to Illinois. This involves dissolving the limited liability company in your home state and registering a domestic LLC in Illinois. The rules for dissolution will be governed by the home state or the state where you have registered your company. Certain laws of dissolution remain the same for all states. To transfer an LLC to Illinois, the following steps may be involved –

• Approval of dissolution of an LLC through unanimous member consent
• Filing Articles of dissolution in the home state
• File any outstanding claims as well as federal, state, and local taxes
• Publish a notice of dissolution if applicable
• Cancel all business licenses and permits

• Appoint an Illinois registered agent under 805 ILCS 180/Article 1-General Provisions
• Conduct an LLC company name search. If the name is available, then file the Application to Reserve a Name for 90 days
• File Article of Organization according to 805 ILCS 180/5-5 along with the appropriate fee
• Prepare LLC operating agreement
• Open a business bank account
• Apply for state and local business licenses and permits

Register your LLC in Illinois with ease!

Move Your Business to Illinois with IncParadise

Several processes make moving your business to Illinois possible. These processes may require a lot of research and documentation. This is where IncParadise can provide meaningful assistance. We can assist you in moving a corporation to Illinois or an LLC. We can help facilitate paperwork for dissolution in your home state, foreign qualification, and new business registration in Illinois.