What is an Illinois registered agent?

Whether you want to change Illinois registered agent or hire someone new, it is important to understand who they are and what they do. They are also known as statutory agents or an agent for service of process. Their primary objective is to receive service of process (SOP) on behalf of the company that has hired them. It is mandatory to appoint a registered agent in Illinois so that they can take care of SOP and all other state temporary and annual requirements in accordance with specified laws. The registered agent requirements in this state are governed by the 2024 Illinois Compiled Statutes, Chapter 805 – Business Organizations for different entity structures.

What are the roles and responsibilities of a registered agent in Illinois?

Although governed by Illinois business laws, the roles and responsibilities of a registered agent remain almost the same in all states of the USA. Registered agent services in Illinois are available for both domestic and foreign entities. The core duties of a statutory agent include the following:

• Service of Process – You probably wonder what service of process (SOP) really implies. This service is most required when you hear words like “You will hear from my lawyer” or “I will sue you.” The important thing to understand here is that when an individual or company files a lawsuit, they must deliver a notice of the lawsuit to the other party or company. This includes all types of legal documents. If such a notice is not delivered on time, then the case cannot proceed. This is where a registered agent in Illinois comes into the picture. You will receive the notice or the service of process for the RA service you hired as sent by a legal authority.
• Business Documentation – If you are planning to start a business in Illinois, you will need to undergo different types of processes. Each process has its own requirements, including submitting documentation containing business and personal information.

  Example: If you want to register a company in Illinois, you will need to reserve a business name and then file formation documents according to the chosen entity structure. Once business registration is complete, you must apply for and obtain business licenses. You must comply with state annual requirements like filing taxes and annual reports. Reputable registered agent services in Illinois will assist you with fulfilling all these requirements.

Who can be a registered agent for your Illinois business?

Every state has its laws defining the requirements for an RA. Similarly, Illinois’s guiding laws highlight Illinois registered agent requirements and qualifications. There is a general criterion that exists in almost all states. In Illinois, a natural person can be an agent, and a foreign or domestic entity can be a statutory agent. It is important to note that such a person or firm should possess the license necessary to transact business in this state. Hence, it is extremely important to conduct a proper Illinois registered agent search.

What are the requirements of an Illinois registered agent?

The primary objective of a registered agent in Illinois is to receive legal and tax documents on behalf of your business. A statutory agent in the state can be a corporation, limited liability company (LLC), or a limited partnership (LP). The state has specified certain criteria focusing on Illinois registered agent requirements. They are –

• If you want to change to an Illinois registered agent, choose an agent with a physical street address in this state. This is one of the primary requirements. P.O. Box addresses for RA services are unacceptable.
• If the statutory agent is an individual, then they should be at least 18 years old.
• An important requirement is the agent’s availability. They should be available during regular business hours.
• If your agent is a firm, they should have proper authorization or licenses to conduct business in Illinois.

Looking for the top Registered Agent Services in Illinois?

Can I be my own registered agent in Illinois?

Yes, you can offer your registered agent services in Illinois. It is important to ensure you comply with the regulations mentioned in the Illinois Compiled Statutes. As an individual, you need to meet the following criteria:

• You should be a resident agent in Illinois
• Your age should be over 18 years
• You have a proper physical street address and not a PO Box address
• If a company conducts Illinois registered agent search then they should be able to find you
• You should be available during working hours through the week

How to choose a registered agent in Illinois?

Illinois is one of the USA’s most culturally and industrially vibrant states. It has an extremely positive business environment and world-class research and innovation hubs. If you are planning to form a new company or move your existing business, you must comply with certain state requirements. One such requirement is to appoint a registered agent in Illinois.

• Look for a statutory agent service that possesses knowledge of state business laws and various compliance rules of this state
• You should appoint a registered agent in Illinois who has skilled staff with experience in handling and forwarding SOP documents
• The RA services should have state-of-the-art automated systems for handling, sorting, and delivering crucial business documents
• A reputable resident agent should be able to provide additional compliance tools that help towards fulfilling annual state requirements
• The registered agent services should keep business hours
• A nationwide registered agent service like IncParadise not only possesses the necessary knowledge and expertise but can help you with the other aspects of managing a company in this state.
• Registered agent services in Illinois should be able to provide reliable software like the Entity Management Software by IncParadise

Why choose a professional registered agent service in Illinois?

Although the state of Illinois will allow you to serve as your registered agent, hiring a professional RA service is always recommended for several reasons. They are the channel that creates a streamlined connection between a business and the office of the Illinois Secretary of State. They will also need to be available during regular business hours so that service of process can be received on behalf of your business. If you appoint a registered agent in Illinois, you will enjoy several benefits. They are –

• One of the main benefits of hiring a resident agent instead of being your agent is saving time. A professional RA service can accomplish several important tasks much faster and in a way that will help save time.
• It is important to note that the Secretary of State’s office will reject any business filing you make if you have not appointed a registered agent.
• You can opt to change your Illinois registered agent if your existing agent does not have the necessary license to serve in this state.
• They also act as a communication channel so the state and public can contact you or your business.
• A reputable RA with years of experience working with multiple businesses. Some resident agents like IncParadise can represent your business in multiple states.
• They also possess the staff and resources necessary to handle your requirements in this state.
• One important registered agent service in Illinois is maintaining privacy. Your personal and business information will thus remain protected.

Want to hire us as your Illinois registered agent?

How do you change a registered agent in Illinois?

As a new or existing business, your requirements may differ from those of other businesses in Illinois. You may want to change Illinois registered agent or choose a new RA service for several reasons. One of the most common reasons is the lack of services offered by a specific agent. Certain steps may be involved. They are –

• To appoint a registered agent in Illinois, you will need to choose a service that is licensed in this state to offer Service of Process (SOP).
• Conduct your search and select an agent according to your business requirements.
• Notify your current registered agent that you will be discontinuing their services.
• Complete and submit the Statement of Change of Registered Agent And/Or. Registered Office (Form BCA 5.10), along with a fee of $5.
• Alternatively, you can directly file a change Illinois registered agent with IncParadise.

Want to change your Illinois registered agent?

Choose IncParadise as Your Illinois registered agent!

If you are planning to start an LLC, corporation, or any other form of entity in Illinois, then it is mandatory to hire and maintain a registered agent in this state. You will need to conduct an Illinois registered agent search to find a licensed and competent RA service. IncParadise is one of the reputed registered agents in this state and is compliant with all Illinois RA requirements as governed by Illinois Compiled Statutes.

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.

Illinois Foreign Qualification

The type of entity structure chosen by you will determine the application process for foreign qualification. If you have registered a limited-liability company then you will need to apply for Illinois LLC foreign registration. The process, fee, and laws vary from one state to another although the spectrum of activities may remain almost the same. It is important to understand that once you apply for Illinois foreign business registration, you will need to be compliant with all state laws related to the entity structure like applying for necessary business licenses and filing state business taxes. One of the advantages though is that you will have access to various Illinois business incentive and tax credit programs as well as grants and other funding options.

What is Illinois foreign qualification?

Illinois foreign corporation registration or LLC foreign qualification is a terminology that refers to registering your company in another state apart from the state you are currently operating in. This is a legal process that will enable your business to pursue growth and expansion opportunities across various state borders without the need to incorporate or form a new business entity. Foreign qualification is governed by the 2024 Illinois Compiled Statutes, Chapter 805 – Business Organizations.

Doing business in Illinois?

One of the areas that entrepreneurs or business owners may face difficulty in is understanding what “doing business” in Illinois refers to. This could mean transacting in this state, but it is not that simple. Each state has its laws and code of conduct for businesses. These point out certain conditions or parameters qualifying for business in that state. If your company fulfills such parameters, you must only apply for a foreign qualification in Illinois. According to 2024 Illinois Compiled Statutes, Chapter 805 – Business Organizations, 805 ILCS 5/13.75 and 805 ILCS 180/45-47, activities that do not constitute doing business in Illinois are:

• Engaging in an isolated transaction, which is completed within 120 days and is not repeated
• Maintaining a passive bank account
• Holding meetings of the board of directors
• Maintaining an office solely for the purpose of internal management
• Holding shareholders’ meetings concerning internal affairs
• Selling through an independent contractor
• Soliciting any orders that have been accepted outside of the state of Illinois
• Owning personal or real property
• Engaging in an activity related to transferring or maintaining securities of the company

Illinois Foreign Qualification Process

Suppose you have an existing business like an LLC or a corporation in any other state in the USA and want to expand operations in Illinois. In that case, your company will be considered a foreign entity. You will be required to apply for a foreign qualification in Illinois. The Illinois Compiled Statutes will govern the process. The law states that each entity will need to procure authority from the Secretary of State before transacting business in this state. It is important to note that the Secretary of State has the authority to revoke Illinois foreign business registration based on certain criteria as specified in 805 ILCS 5/13.50 (from Ch. 32, par. 13.50). Let us look at the process of foreign qualification for LLC’s and corporations.

Illinois Foreign Corporation Registration

If you have already incorporated in another state and want to transact in the state of Illinois, you will need to apply for foreign qualification. This involves applying for Illinois foreign corporation registration to get the necessary authority. Let us understand in detail what this process entails.

• Corporation Name – The existing name of your corporation, as it is in your home state, must be available for use in Illinois. This name should be compliant with the laws of Illinois. The law states that the corporate name should contain words like “corporation,” “incorporated,” or abbreviations like “Inc.,” “corp.,” and “co.” You need to conduct an Illinois foreign entity search, also known as a name availability search. If your existing name is unavailable, you must file for a DBA or register for an assumed name in Illinois.
• Registered Agent – Whether you are forming a domestic entity or applying for Illinois foreign corporation registration, there are certain state laws and guidelines you need to follow. You will be required to maintain a registered agent in this state continuously. Failure to maintain a registered agent in Illinois can lead to revocation of foreign qualification pursuant to 805 ILCS 5/13.50. We at IncParadise are one of the top Illinois registered agents and have helped several domestic and foreign entities incorporate into this state.
• Application for Authority to Transact Business in Illinois – The most important step towards Illinois foreign corporation registration is getting the necessary authorization to transact business in this state. You will need to file the Application for Authority to Transact Business in Illinois (Form BCA 13.15) pursuant to the provisions of 805 ILCS 5/13.05. This application has to be submitted to the Secretary of State, Department of Business Services, along with a fee of $150. You can submit the Illinois foreign business registration application online or in person. You must also submit a certified copy of the Articles of Incorporation from the home state. The articles of incorporation and any or all amendments should be dated within 90 days of the date of submission of the foreign qualification application.

Do you want to register a foreign corporation in Illinois?

Illinois Foreign LLC Registration

Once you register a limited liability company in another state, how do you expand your operations to Illinois? To do so, you must apply for foreign registration with Illinois LLC. This process is also known as foreign qualification and will give you the authority to transact business in this state. The 2024 Illinois Compiled Statutes will govern foreign qualification in this state, Chapter 805 – Business Organizations, 805 ILCS 180/ – Limited Liability Company Act, Article 45 – Foreign Limited Liability Companies. Here’s an example –

• LLC Name – In order to apply for Illinois LLC foreign registration, you need to first register your business name. You can use the existing LLC name as registered or reserved in the home state. However, there is a condition. The name should be available for use in the database of the Illinois Secretary of State. Hence, you will need to conduct an Illinois foreign entity search. If this name availability search reveals unavailability of your existing name then you will need to file an Application for an Assumed Name or DBA name.
• Registered Agent – It is of utmost importance to continuously maintain a registered agent in the state of Illinois pursuant to 805 ILCS 180/45-5. You will need to provide the name and business address of the proposed registered agent in your Illinois foreign business registration application. If you fail to hire an agent then your company will not be authorized to do business in this state. Illinois registered agent services offered by IncParadise will not only help fulfill state requirements like service of process but also assist with other annual compliances like filing of annual reports.
• Application for Admission to Transact Business – If you want to transact business in Illinois even though you have a fully operational business in another state then foreign qualification is the path to take. You will need the authority to transact in this state. You can receive this authority after filing the Illinois LLC foreign registration application. This is known as the Application for Admission to Transact Business (Form LLC 45.5). It has to be submitted with the Secretary of State, Department of Business Services, Limited Liability Division along with a filing fee of $150. You will also need to submit a certificate of good standing or a certificate of existence dated within 60 days along with the Illinois foreign business registration application.

Want to form a foreign LLC in Illinois?

Need Any Assistance in Applying for Illinois Foreign Qualification?

If you have been thinking of expanding your existing operations, Illinois is the perfect destination. The state offers a robust transportation and logistics infrastructure, a highly skilled workforce, and a wide variety of small business grants and tax incentives. In order to move your existing business to Illinois, you will need to undergo the process of foreign qualification. IncParadise can assist you with the process of foreign LLC registration or incorporation.

Doing Business in Illinois

Illinois is one of those states offering an exceptional business opportunity platform to new and existing companies. It can be considered as the epicenter or business hub of North America. Doing business in Illinois has advantages as your company will have a world-class business environment. Illinois’s actual gross domestic product (GDP) has crossed $800 billion and is considered one of the most diverse economies in the USA today. A central location supported by a strong cluster of transportation, distribution, and logistics (TDL) hubs. You can reach almost 83 percent of the continental U.S. with the help of the state’s transportation and logistical network. An experienced workforce and several Illinois small business incentive programs provide the much-needed advantage that will help you make your business self-sustainable.

Why do businesses prefer doing business in Illinois?

If you plan on doing business in Illinois, it is one of the most culturally vibrant and business-friendly states. Several government agencies and private institutions provide meaningful assistance to new businesses. In fact, the Illinois Department of Commerce and Economic Opportunity is one such government agency that provides information and assistance to businesses, individuals, and communities. You can leverage many advantages while conducting a business, including Illinois small business grants. Let us take a look at some of the reasons why entrepreneurs and business owners prefer Illinois.

• World Class Infrastructure – Infrastructure is as important to any business as is finance. State infrastructural framework plays a key role in any business’s growth and success, especially manufacturing ones. Illinois is known for its robust infrastructure, which includes
• two major inland ports
• 14 waterway ports
• the 3rd most extensive interstate highway system in the USA
• 145,000 miles of highway
• Class 1 freight railroads
• 7 commercial and 5 international airports
• Technology & Innovation – The modern age of business belongs to technology and innovation. Technology is considered a critical enabler and strategic driver of business innovation and growth. Illinois is witnessing an increasingly competitive landscape; hence, technological innovation becomes necessary to ensure businesses stay at the top by reducing operational errors and speeding up their internal and external processes. The advantage in Illinois is that you can benefit from the several state-supported innovation hubs. Some of the top hubs include the Illinois Accelerator Research Center (IARC), PeoriaNEXT, Quad City Manufacturing Lab (QCML), and the National Center for Supercomputing Applications (NCSA).
• Business Climate – The state of Illinois has an extremely pro-business climate. Several factors play an important role. Some of the key factors are:
• Business incentive programs like small business tax credits in Illinois
• According to a report by Illinois Science & Technology Coalition, STEM Jobs in the state have reached a record high
• There are over 350,380 STEM Employees and 6.01 percent of all jobs in the state are in STEM fields
• Doing business in Illinois is much easier thanks to several startup incubators specifically designed for propelling new ventures
• You can enjoy quick access to venture funding through private firms like Abundant Venture Partners or government opportunities like Illinois Innovation Venture Fund (INVENT).
• The state is home to several foreign trade zones and Opportunity Zones

Register your company in Illinois today to enjoy great benefits!

Small Business Incentive Programs and Grants in Illinois

When you form a company in Illinois, you will get access to Illinois small business grants and other incentive programs. There are several grant programs like the DCEO grants in Illinois and Community Development Block Grant programs that will play a crucial role in shaping your business. So, let’s list some of the most popular grant and incentive programs in this state.

DCEO Grants

The Illinois Department of Commerce and Economic Opportunity (DCOE) is a department of the Illinois state government that sponsors and focuses on statewide economic development and creating opportunities for business investment. They are responsible for administering various loans, tax credits, and grant programs like the DCEO grants in Illinois.

• Illinois Travel and Tourism Grant Program
• Small Business Development Centers
• Accelerate Illinois Broadband Infrastructure Planning Program, Round 3
• Human Services Capital Investment Grant Subaward Program
• Illinois Meat & Poultry Supply Chain Capital Grant Program
• Community Development Block Grant, Public Infrastructure
• Connect Illinois Broadband Grant Program

State Small Business Credit Initiative

The State Small Business Credit Initiative (SSBCI) is a type of Illinois small business funding program. It is a part of the American Rescue Plan Act 2021 and provides $10 billion to the SSBCI fund annually. The state of Illinois received $354.6 million for administering four different programs as a part of this Illinois small business incentives program. It is being implemented by the Illinois Department of Commerce and Economic Opportunity (DCEO). SSBCI will focus on enabling Illinois to support small businesses across this state through this program. This will help small businesses to get capital investment and expand their operations in several key industries or sectors.

• Advantage Illinois (AI) Participation Loan Program</li>
• Advantage Illinois (AI) Loan Guarantee Program
• INVENT Venture Capital Program (VCP)
• Climate Bank Finance Participation Loan Program

Incentives and Tax Credits

If you thought doing business in Illinois was expensive, think again. The state offers various support to small businesses through incentive programs. Whether your company is a small startup or a medium-sized enterprise, you can take advantage of several small business tax credits in Illinois. There is a competitive range of credit incentives to encourage job creation and business growth. On top of this, there is access to loans, other funding programs, and several grant programs. You can even apply for early-stage investment incentives.

• Quantum Campus Enterprise Zone incentive program
• Reimagining Energy and Vehicles (REV) promoting utility tax exemption
• Manufacturing Illinois Chips for Real Opportunity (MICRO)
• Economic Development for a Growing Economy (EDGE)
• Research and Development Tax Credit
• Rivers Edge Redevelopment Zone expansion
• Blue Collar Jobs Act (BCJA) Tax Credit Program
• Illinois Historic Preservation Tax Credit Program

Community Development Block Grant

There are several Illinois small business grants programs, some of which are state-sponsored and some are Federal grants programs. The Community Development Block Grant (CDBG) program is a Federal grant program that specializes in providing funding for certain community-based projects planned in non-metropolitan areas. It is a formula-allocated program where eligible individuals, businesses, and communities receive Illinois small business funding grants. The key focus areas include housing rehabilitation, public infrastructure, disaster response, and economic development.

Loan and Relief Programs in Illinois

Once you start a new company in Illinois, there are three types of programs that you can participate in. They are business incentives programs like tax credits, grants programs like DCEO grants in Illinois, and loan programs. The state of Illinois offers several loan and relief programs, most offered by the Illinois Department of Commerce & Economic Opportunity. The “Advantage Illinois” is one such program, where qualifying businesses can get loans varying from $10,000 to a maximum of $2 million. This program is a part of the Illinois Small Business Incentives Program by DCEO.

Support for Key Sectors and Industries

When you start a new company or move your existing business to Illinois, there are several types of financial assistance that you can apply for. These Illinois small business grants and funding programs support the growth and sustainability of small and medium-sized enterprises (SME’s) in this state. These initiatives target businesses in specific sectors or industries, like the Illinois Enterprise Zone Program, which benefits businesses in an enterprise zone or an economically depressed area. Similarly, the Manufacturing Illinois Chips for Real Opportunity Act (MICRO) ensures businesses in microchips and semiconductor manufacturing have access to capital investment. Some of the other Illinois small business funding and grants programs for key sectors are –

• The Business Attraction Prime Sites Capital Grant Program
• Illinois Angel Investment Tax Credit Program
• High Impact Business Program
• Data Center Investment Tax Exemptions and Credits
• Film Production Tax Credit

Ready to Start a Business in Illinois?

Whether you are planning to move your existing business, expand your company, or register a startup, Illinois offers grants, loans, and other funding. You may need Illinois small business grants in the start-up stage or a loan to make your business operational. Either way, there are several options and many opportunities that you will be able to access in this state.

Illinois Business Tax

The state of Illinois is a business friendly state and like all other states, also requires new and existing entities to file taxes. You may be required to file Illinois business tax at the state level and local level. Depending on the type of entity you form, federal taxes may be required to be filed. The type of taxes that you may need to file may also depend on certain other factors like business activity and number of employees. Each type of state or local tax has different rates. Hence, it is important to use an Illinois business tax calculator to determine the exact tax amount. If you are moving your company through foreign qualification then you will be required to file state business taxes in the state of formation (home state) as well as Illinois.

What taxes do businesses pay in Illinois?

Illinois is a business friendly state and home to several Fortune 500 companies. Some of the largest multinational companies based in this state include Boeing, Walgreens Boots Alliance, Caterpillar, United Parcel Service (UPS), Baxter International, Hyatt Hotels, Aon, Northern Trust, and CNA Financial among others. There are several key industries in this state right from pharmaceutical and drugs to cosmetic & toiletry, life sciences, Casualty and Direct Insurance, transportation, distribution, and logistics, and commercial banking among others. The industry also plays a key role in determining the type of small business tax in Illinois that may be applicable.

Illinois business income tax

There are two types of income tax prevalent in the state of Illinois. One is a personal or individual income tax, and the other is a small business tax, also known as the state business income tax. The tax rate is a flat 7 percent of your federal taxable income, along with adjustments. The tax returns are due on the 15th day of the fourth month after the end of an entity. This is one of the important Illinois corporation taxes.

Illinois pass-through entity tax

An important Illinois business tax is the Pass-through Entity (PTE) tax. This is considered an entity-level income tax. The PTE tax rate is 4.95 percent (.0495) of the taxpayer’s net income during a taxable year. S corporations and partnerships can elect this tax. This tax will be paid on all Illinois net income post allocation or apportionment.

Illinois personal property replacement tax

Personal property replacement taxes (PPRT) are an essential source of revenue for the state. It is collected by the Illinois state and paid to the local governments. The PPRT tax is governed by the 2024 Illinois Compiled Statutes, Chapter 30 – Finance, 30 ILCS 115/ – State Revenue Sharing Act – (30 ILCS 115/12) (from Ch. 85, par. 616). It is an essential form of Illinois Corporation taxes where the rate can vary from 1.5 to 2.5 percent depending on the entity type.

Illinois sales and use tax

One of the important forms of Illinois corporate income tax is the sales and use tax. The sales and use tax is imposed on different business activities connected to selling products and services. The most important component of the sales tax act is known as the Retailers’ Occupation Tax Act. This act imposes sales tax upon individuals or businesses that are engaged in selling tangible personal property through retail to vendors or purchasers for use or consumption.

Illinois withholding tax

The employer withholding tax is an important form of Illinois business tax. The application of this tax is governed by the 2024 Illinois Compiled Statutes, Chapter 35 – Revenue, 35 ILCS 5/ – Illinois Income Tax Act., Article 7 – Withholding Tax. According to this law, every employer who maintains an office or is transacting their business within this state is required under the provisions of the Internal Revenue Code to withhold a tax on any form of compensation paid in this state to an individual according to Section 304(a)(2)(B)). If you are paying wages and salaries, you must first register with MyTax Illinois. The tax rate for withholding is 4.95 percent, effective July 1, 2017. You can use an Illinois business tax calculator to determine your withholding tax rates.

Illinois individual income tax

There are certain types of entities that have to file one or more small business tax in Illinois. In some forms of entities, the owners of such businesses have to file individual income tax returns. This tax applies to individuals, estates, and trusts. A flat income tax rate of 4.95 percent of the net income. If it is applicable, then you will need to file Form IL-1040. You can file it electronically using MyTax Illinois. You can file this return using your Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN).

Are you thinking of starting a new business in Illinois?

How Illinois Businesses are Taxed?

Suppose you have decided to form and operate a new company in Illinois, and then you must maintain compliance with all important state requirements. One such requirement is filing Illinois business tax returns. The state has different types of taxes; one entity may be required to file multiple taxes. The type of taxes that will apply to your business will depend on the entity structure, business activity, and even location. You may need to file multiple Illinois LLC taxes if you form a limited liability company. Let us examine the various entities and their tax obligations in this state.

Taxes for an LLC

If you plan to form a limited liability company in Illinois, then it will be considered a pass-through entity for taxation purposes. Such an entity will not be required to file any federal or Illinois corporate income tax. This being said, the income earned by an LLC will always pass through to the owners and other members. As a result, you or the members will be required to file personal income tax at a flat rate of 4.95 percent. However, suppose a limited liability company is considered a disregarded entity for federal income tax purposes. The income, deductions, and other relevant items must be reported on the owner’s federal income tax return.

Taxes for a C Corporation

If you are thinking of incorporating in Illinois then your company will be subjected to different types of taxes. One of the foremost amongst them is the Illinois corporate income tax. The current tax rate is a flat 9.5 percent. Apart from this, corporations are also charged a franchise tax. This is quite a complex tax and will require you to use an Illinois business tax calculator. Apart from this, a corporation may be subjected to Replacement Tax, which is also known as the Personal Property Replacement Tax (PPRT). Corporations will have to pay a replacement tax of 2.5 percent on their net income in this state. You can file this tax using Form IL-1120.

Taxes for S Corporation

An S Corporation is not exactly an entity structure but is a type of tax election. You will actually need to register some form of entity prior to opting for this election. The most common form of companies that elect S Corporation tax status are C Corporations and Limited Liability Companies (LLC’s). Once your company gets the S Corporation status, the Illinois corporate income tax liabilities will also change. The most important feature is that of pass-through taxation and due to this, an S corp will not file any federal income taxes at the company level. Instead, the profit and loss will be “passed through” to company shareholders and they will need to file individual tax returns.

Taxes for a Sole Proprietorship

A sole proprietorship is one of the easiest forms of business that you can operate in the state of Illinois. Since it is owned and operated by a single owner hence the most important small business tax in Illinois for a sole proprietorship is individual income tax return (Form IL-1040). You will have to file this return at a flat rate of 4.95 percent irrespective of your earnings. Apart from this, depending on the business activity, sole proprietors may also be required to file sales and use tax returns.

Taxes for Partnerships

The income generated from a partnership firm is normally distributed to the individual partners. These partners pay tax on this distributed amount through their federal as well as state tax returns. One of the Illinois Corporation taxes that partnerships are required to file is the personal property replacement tax. The applicable tax rate for this type of entity is 1.5 percent of its net income. Partnerships can also elect to file Pass-through entity (PTE) tax at a rate of 4.95 percent. If the business activity of a partnership involves retail sales then sales and use tax will also be applicable.

Ready to Incorporate Your Illinois Company?

You can register several types of entity structures in Illinois right from a Partnership to an LLC or C Corporation. You can even elect S Corporation tax status to enjoy certain tax privileges. The process for new company formation and the applicable taxes will vary according to the chosen structure. IncParadise, one of the state’s top incorporation service providers, can provide information about Illinois’s small business tax. We can help you register your LLC or corporation in this state.

Doing Business As or DBA in Illinois

Illinois is home to over 1 million small businesses including LLC, sole proprietorships, and partnerships among others. You can form any type of company structure in this state but one of the primary requirements is that of a business name. The importance of a company name or a DBA lies in the fact that no business can be registered or can operate without this. You may opt to use your name (owner’s legal name) like Sarah Ferguson LLC or use a “Doing Business As” (DBA) name like Ferguson & Friends. If you proceed with filing a DBA in Illinois then it is important to ensure compliance with the requirements as governed by Illinois Compiled Statutes, Chapter 805 – Business Organizations, 805 ILCS 405/ – Assumed Business Name Act. If you are wondering how to look up a DBA in Illinois then there is a specific process that you need to follow.

What is DBA in Illinois?

A business name is considered to be the identity of a company. Your customers, vendors, or partners will be able to recognize your company with the help of a name. Example – When we say IBM, immediately customers globally can relate to the name as one belonging to a technology giant. There are basically three types of business names that any company can choose and they are:

• The name of the business owner – James Beck LLC
• Traditional company names like Vermillion Inc.
• A DBA or an assumed name like Dennis Bakery

When do you need a DBA in Illinois?

Many companies conduct their business under multiple names. If you plan to form an LLC, C Corporation, sole proprietorship, or partnership, then filing a DBA in Illinois is necessary. Of course, there is nothing wrong in using a DBA name or an assumed name as long as you comply with state laws. Several reasons or situations require businesses to file an Illinois DBA online application. Some reasons you may need a DBA are:

• Operate multiple businesses – If you want to operate multiple businesses or more than one business, you must apply for Illinois DBA online. A single company cannot use the same name for any other business. Hence, you can apply for an assumed name instead of registering a new legal entity.

  Example: Your primary business activity is party planning. Now, you want to expand into baked cookies and cakes. You can simply file an Illinois DBA online application to promote this new venture. After a few months, you can use another assumed name to brand this new business activity if you want to branch off into entertainment.

• Maintaining Business Compliance – Certain forms of businesses, like corporations or LLCs, automatically enjoy some degree of legal protection. If you start another business with a different name but don’t file a DBA, that company will not have any legal protection, and your client or project contracts will not hold up in court.
• Complexity and expenses – One of the reasons for filing a DBA in Illinois, especially by a sole proprietorship, is to avoid complex processes and expenses related to it. You don’t have to register a sole proprietorship with the state. The only costs involved are those of licenses and individual income tax.

Filing DBA in Illinois for LLC and Corporation

If you focus on expanding your business horizontally, then applying for a DBA would help. This is also known as an assumed name in the state of Illinois. There is a specific process to apply for and obtain an Illinois assumed name or file a DBA in Illinois, especially for a business corporation or an LLC. The process and fee will also differ from the traditional LLC or corporate name reservation process and fee.

Do Illinois Business Name Search

If you want to apply for an Illinois DBA online for your LLC or corporation, then you will first need to ensure compliance with Illinois’s assumed name laws. This will be governed by the Assumed Business Name Act – 805 ILCS 405/0.01 from Ch. 96, par. 3m. You must also ensure your chosen assumed business name is unique. This means it will not be the same as any other registered business name or LLC or corporation’s assumed name in the database. You would now want to know—how I look up a DBA in Illinois.

• Business Name
• Registered Agent
• President
• Secretary
• Manager
• File Number
• Keyword
• Partial Word

File the Certificate of Assumed Name with the County Clerk

Once you have conducted a DBA search and if your chosen name is available, then the next step is to file the Illinois DBA online application. The filing process, the application, and the fee will differ according to the county in which you operate.

Register your Illinois DBA with ease!

Managing Illinois DBA

After conducting an Illinois DBA name search, you can register the assumed name with the office of the County Clerk. Each county in Illinois has its own rules and regulations pertaining to an assumed name. These laws are also applicable for renewal, changing, or cancelling of the assumed name in the jurisdiction where the DBA application was filed. Let’s look at the various processes applicable for managing an Illinois DBA in the future.

How to renew Illinois DBA?

Filing a DBA in Illinois can be done only with the office of the County Clerk. Normally, the assumed names registered at the County level do not expire. If you have registered an assumed business name at the state level after conducting an Illinois DBA name search then you will have to renew your registration every 5 years.

How to change Illinois DBA?

After filing an Illinois DBA online application, if you want to change the DBA name then you will need to cancel it and apply for a new name. There is no easy process for the same. Even if there is any change in business information, you will be required to re-register.

How to cancel Illinois DBA?

Once you publish a DBA name in Illinois, this will become the business name legally. At any given point in time, if you want to cancel or withdraw the assumed name then there is a simple process for the same. If you are filing for canceling at the state level, then you will need to fill and submit the Application to Adopt, Change, Cancel, or Renew an Assumed Name. There is a fee of $5 for corporations and LLC’s.

Need Any Assistance in Filing Illinois DBA?

The process for filing a DBA in Illinois requires you to provide accurate business information while being compliant with state assumed name laws, federal trademark laws, and local county laws. The process of conducting an Illinois DBA name search can be quite confusing. IncParadise can gladly assist you with this process. We have expertise and knowledge regarding the Illinois state and county regulations about DBA and new businesses.