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Advantages of Incorporating a Business in Illinois
Why should you register a new business in Illinois? The state is home to some of the largest and renowned companies in the world like Walgreens Boots Alliance, Caterpillar Inc., McDonald’s, Allstate Insurance Company, Archer Daniels Midland, Abbott Laboratories, and Boeing among others. It is a favored destination for almost 1.2 million small businesses that have been responsible for providing 68,276 net new jobs. The annual growth rate for Illinois economy is 3.5% and the state offers a variety of extremely competitive incentives for businesses that are registered here.
Business Growth Incentive for New Businesses
As one of the top registered agents in the state, we can help you register a new business in Illinois as this will ensure you are able to leverage all types of business gains and state provided incentives and grants. Let’s take a quick look at why Illinois is the right destination for establishing a business:
Advantage#1: The benefits of Incorporation or LLC formation
Corporation
- Perpetual Existence: A startup company in Illinois registered as a Corporation will enjoy perpetual life. This means that the incapacitation or death of a stockholder will not have a negative impact on the business operations.
- Limited Liability: As an owner of an Illinois Corporation, you will be able to enjoy limited liability protection for corporation’s debts or any judgments made against the corporation.
- Pass through taxation: If you register a new company in Illinois as an S corporation then the corporation or firm will not pay any income tax. Instead, the income or loss of the corporation will be passed on to the stockholders.
LLC
- Limited Liability: As an owner of an Illinois LLC, you will be able to enjoy limited liability protection quite similar to what a corporation enjoys.
- Flexible Profit Distribution: A startup company in Illinois LLC has the benefit of being able to select different ways of distribution of profits unlike a partnership where the distribution is 50-50.
- No Minutes of meetings: An LLC startup company in Illinois will not be required to maintain any minutes of the meetings or resolutions.
Advantage#2: Beneficial Programs for Illinois Businesses
The state of Illinois and the Illinois Department of Commerce and Economic Opportunity (DCEO) provides a wide range of incentives, grant programs, access to loans, and State Tax Incentives to small and medium sized businesses. If you register a new company in Illinois, some of the programs that you can benefit from include:
- Participation Loan Program: A startup company in Illinois can benefit from this program as the Illinois Department of Commerce and Economic Opportunity (DCEO) participates with lenders to enable loan access to new businesses. The loan amount varies from a minimum of $10,000 to a maximum of $750,000.
- Illinois Enterprise Zone Program: This is quite a beneficial program if you register a new business in Illinois enterprise zone. Your business would be eligible for state and local tax incentives under this program including sales tax exemption on Manufacturing Machinery and Equipment. Click here to see Illinois Enterprise Zones.
- River Edge Redevelopment Zone Program (RERZ): This program focuses on providing benefits to businesses that are established in environmentally challenged properties especially those adjacent to rivers in state. You can benefit from several incentives under this program including Building Materials Sales Tax Exemption and Property Tax Abatement.
Are there any Disadvantages of Incorporating in Illinois?
Are you wondering if there are any disadvantages of starting a business in Illinois? The disadvantages are very few and almost inconsequential. For instance, the time taken for registration of a corporation is longer compared to a partnership. Also the fee for foreign LLC’s and corporations is higher than that of domestic business entities. The truth is that the advantages of doing business in this state are much more and will enable your business achieve its intended growth.
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