No, but it is recommended to reserve a name prior to filing to ensure that it remains available during the incorporation process.
How do I reserve a corporate name?
The reservation of your corporate name will be handled by IncParadise and is included in the price of our service.
Do I have to renew my name registration?
No, only foreign corporations doing business in Illinois are required to register on an annual basis.
How do I incorporate in Illinois?
When using our service, IncParadise will file, on your behalf, the required administrative forms and articles of incorporation with the appropriate Illinois agency.
Is a registered agent required?
Yes. . The registered agent must be either (1) a resident individual of Illinois whose business office is the same as the registered office or (2) a corporation with authority to transact business in this state that is authorized by its articles of incorporation to act as such agent and whose business office is the same as the registered office. As part of our ongoing service, IncParadise does provide a registered agent service option that you can select during the online registration process.
How many Incorporators are required to form a corporation in Illinois?
One or more are required.
How many Directors are required to start a corporation in Illinois?
One or more as defined in the bylaws.
Are corporations in Illinois required to file an Annual Report?
Yes. A report must be filed each year within the 60 day period prior to the month of incorporation or the extended filing month.
What makes Illinois an exciting place to start your business? According to Economist Fred Giertz, the economic health of Illinois is showing an upward trajectory. The economy has been driven by several industries including some of the biggest names like McDonald’s, Boeing, United Airlines, and Motorola. The total gross state product was $792 billion in 2016 and incorporation in Illinois showed an increase in industries like higher education, financial trading, medicine, and logistics. The question is: are you ready to start your business in this state?
Why Choose Illinois for Incorporation?
There are many reasons why the number of small businesses being formed in Illinois has increased over the years. The state and federal agencies provide assistance for business entities in the form of grants and a variety of lending programs. Business incorporation in Illinois can enable your business benefit from the various incentives and tax assistance programs as well.
Now let’s take a look at some of the salient benefits that are responsible for fuelling growth of small businesses:
Illinois Business Enterprise Zone Program: The Illinois Enterprise Zone Program has been designed essentially to stimulate economic growth especially in the economically depressed areas within the state. If you set up a company in Illinois Enterprise Zones like Bedford Park or Clark County then you will be able to benefit from state as well as local tax incentives. Apart from tax incentives, business entities will be exempted from retailer’s occupation tax which is normally paid on building materials. You can check the Illinois enterprise zone map here.
Business Grants and Loans: The Illinois Department of Commerce and Economic Opportunity (DCEO) makes different types of loans and grants available to small and medium sized businesses. You can qualify for these incentive programs post incorporation in Illinois. Some of the popular programs include:
– Illinois Capital Access Program: This is a loan program specifically targeted at those new or small business entities that are unable to qualify for a conventional loan.
– Participation Loan Program: This is a loan program which allows the Illinois Department of Commerce and Economic Opportunity (DCEO) participate with lenders to ensure loans amounting to a minimum of $10,000 and a maximum of $750,000 are made available to small businesses post incorporation in Illinois.
How do you incorporate in Illinois?
What is the process of company incorporation in Illinois? What type of documentation is required? These are some of the common questions that you will be confronted with if you planning to set up a new business in the state. The following steps will help you understand the entire process:
Business Type
What type of business do you want to set up in Illinois? It is important to identify the type of business so that you can set up company in Illinois with ease. You can choose from Sole Proprietorships, Limited and General Partnerships, Limited Liability Companies (LLC), Limited Liability Partnerships (LLP), and Corporation including S-Corporations and C-Corporations. The type of business entity you want to form can be either domestic or foreign. The forms and fee will be different for each type of entity. Know more
Business Entity Name
One of the most important steps towards incorporation in Illinois is naming your business entity. You have to start by identifying, searching, reserving, and then registering the business name. There are 3 steps towards business name formation and these are:
Naming Requirements: A corporate name pursuant to (805 ILCS 5/) Business Corporation Act of 1983 should contain the words “corporation”, “incorporated” or abbreviation like “corp.”, and “inc.” The names should be distinguishable from existing names.
Business name search: You need to search for a business name that is not in use already. You can conduct name search here.
Name Reservation: Once you have identified business entity name, it is advisable to reserve the name by filing an application with the Secretary of State pursuant to 805 ILCS 5/4.10 Business Corporation Act of 1983. Name reservations are valid for 90 days.
Choose a Registered Agent
A domestic business entity as well as foreign entity authorized to transact business in the state of Illinois will have to maintain a registered agent pursuant to (805 ILCS 5/) Business Corporation Act of 1983. We are one of the respected registered agents in Illinois and will help you initiate incorporation in Illinois through processing of your “Articles of Incorporation” for domestic corporations and “Application for Authority” for foreign corporations.
Articles of Incorporation and Application for Authority
You will be required to submit “Articles of Incorporation” if your business is a domestic corporation and an ” Application for Authority” if it is a foreign business entity. In order to streamline the process of incorporation in Illinois, we can file documents on your behalf through the online process or through an expedited process.
Date Stamped Copies
As a part of the process of company incorporation in Illinois, we will ensure, you receive date-stamped and filed copies that verifies the state has filed as well as formed your corporation.
Costs and Fees associated with Illinois Incorporation
What would it cost to set up a company in Illinois? Check Fees here!
Illinois LLC and Corporation Registration and Formation
Have you been wondering if your business will grow exponentially once you establish in Illinois? The fact is that the state has seen several reforms in the new business development sector. A report by the State of Illinois Commission states that the state provides small and medium sized businesses with access to customers and capital, talent, transportation hubs, and incentive programs and this is expected to enable Illinois economy build the right momentum. The industry segments that experienced a high growth rate include Construction, Wholesale Trade, Professional and Business Services, Retail Trade, Leisure and Hospitality, and Manufacturing among others.
We are one of the top Illinois registered agents and are familiar with all processes pertaining to the Illinois State and can provide information and assistance for successful set up of your business!
Let’s take a look at how you can form an Illinois business LLC or Corporation.
Illinois LLC Registration and Formation
LLC company formation in Illinois is governed by Article 5 of the Limited Liability Company Act. The procedure for registration and formation of LLC is as follows:
Step#1: Maintain a registered agent
According to 805 ILCS 180, Section 1-35 of the Limited Liability Company Act, a domestic and foreign LLC needs to continuously maintain a registered agent in the state. If you are planning to form an Illinois business, you will need to appoint an agent authorized to receive service of process on your behalf. We would take this opportunity to share with you the fact that we are one of the top registered agents in the state and have been responsible for over 11,494 businesses set up in Illinois.
We are in compliance with all regulations in the State of Illinois.
The name should contain the phrase or words “limited liability company” or the abbreviations “L.L.C.”, or “LLC” pursuant to 805 ILCS 180, Section 1-10 of the Limited Liability Company Act.
The chosen name should be distinguishable from any other name that exists in the records of the Secretary of State
Apply for reservation of name by downloading Form LLC-1.15.
File with the Secretary of the State along with the applicable fee. An LLC can reserve its name for a period of 90 days.
Step#3: Articles of Organization and Certificate of Authority
If you are planning to form an Illinois business LLC then the most important step is to prepare and file the proper documents for a Limited Liability Company.
If you want to register a domestic LLC then you will be required to file “Articles of Organization” pursuant to 805 ILCS 180, Section 5-5, Limited Liability Company Act.
If your business entity is a foreign LLC then you will be required to file an “Application for Certificate of Authority” pursuant to 805 ILCS 180, Section 45-5, Limited Liability Company Act.
The application or documentation for registration of LLC can be filed with Secretary of State, Department of Business Services Limited Liability Division, in person or online.
We can file the form on your behalf as your registered agent in the state and provide you with certified copies of the LLC registration.
Should you have any questions regarding how to form an Illinois business, feel free to call us on 702-871-8678.
Illinois Corporation Registration and Formation
If you are planning to form a Corporation in Illinois then the procedure for registration and formation is as follows:
Step#1: Maintain a Registered Agent
According to 805 ILCS 5, Section 5.05 of the Business Corporation Act of 1983, a domestic and foreign Corporation needs to continuously maintain a registered agent in the state. If you are planning to form a corporation in Illinois, you will need to appoint an agent authorized to receive service of process on your behalf. We would take this opportunity to share with you the fact that we are one of the top registered agents in the state and have been responsible for over 11,494 businesses set up in Illinois.
We are in compliance with all regulations in the State of Illinois.
The name should contain the phrase or words “corporation”, “company”, “incorporated”, or the abbreviations “Corp.”, or “Inc.” pursuant to 805 ILCS 5, Section 4.05 of the Business Corporation Act of 1983.
The chosen name should be distinguishable from any other name that exists in the records of the Secretary of State
Apply for reservation of name by downloading Form BCA 4.10.
File with the Secretary of State, Department of Business Services along with the applicable fee. A business corporation can reserve its name for a period of 90 days.
Step#3: Articles of Incorporation and Certificate of Authority
If you are planning to form a corporation in Illinois, then the most important step is to prepare and file the proper documents for a business corporation.
If you want to register a domestic corporation then you will be required to file “Articles of Incorporation” pursuant to 805 ILCS 5, Section 2.10, Business Corporation Act of 1983.
If your business entity is a foreign corporation then you will be required to file an “Application for the Certificate of Authority” to transact business in the state pursuant to 805 ILCS 5, Section 13.15, Business Corporation Act of 1983.
The application or documentation for registration of a corporation can be filed with the Secretary of State, Department of Business Services, in person or online.
We can file the form on your behalf as your registered agent in the state and provide you with certified copies of the incorporation.
If you have any questions regarding Illinois incorporation or LLC formation, you can simply visit the Illinois Business formation page.
Registration of a new business does not necessarily mean that you have got the “go ahead” to operate your business in the state of Illinois. Most often than not, business owners forget to include the “requirement of a business license” in their starting a new business checklist. It is recommended that business owners have all necessary information about licensing prior to registration of their business entity. It is important to know if your business requires a license or permit because if you are operating without one, you can be charged heavy penalties and in some cases, closure of your business.
How to Get a Business License in Illinois
Where and how do you apply for a business license in Illinois? Does your business require a license or a permit? Does the business entity require a single license or multiple licenses or permits? Who is the issuing authority for these licenses or permits? The only way to answer these questions is by understanding the process of business licensing.
There are two steps towards acquiring a business license in the state of Illinois and they are:
The Industry or Business Type
Which industry is your business entity a part of? It is important to identify the industry as some businesses may require a business license while others may require only a permit to become operational. On the other hand, some businesses may also require multiple licenses or a license and a permit. Let’s look at an example to understand this well.
HOSPITAL/NURSING HOME
If you are planning to establish a “Hospital” or a “Nursing home” in Illinois then you will require a business license. This is apart from the fact that your hospital or nursing home will need to be inspected, regulated, and certified by private and public agencies at the federal as well as state level. The agencies responsible for regulation, certification and licensing include the U.S. Department of Health and Human Services’, Illinois Department of Public Health (IDPH) and Health Care Financing Administration (HCFA).
Another important aspect to consider is whether your Illinois company license will be issued directly by the state authorities or you will need to acquire a license or a permit from city council as well. Let’s look at an example to understand this well.
If you are planning to establish a “Wholesale Drug Distribution” business in Chicago then you will not require a Chicago business license as this type of license will be issued directly by a state department, and in this case by Illinois Department of Financial & Professional Regulation (IDFPR). On the other hand, if you were to establish a “Manufacturing” business that focuses on mechanical and/or chemical processing then your license will be issued by a Chicago Small Business Center or other City agencies.
Who Issues the License?
Once you have identified the type of Illinois company license you require, the next step is to file the application for the appropriate license. The license or business permit pertaining to your business is dependent on the type of business and will be issued by either the state licensing agency or city licensing agencies.
In order to understand this process, let’s look at another example.
Business license in Illinois is issued by the Illinois Department of Financial & Professional Regulation (IDFPR). So, if you were to establish a Real Estate firm then you will be required to apply to the Division of Real Estate (DRE) for the required license. The license needs to be renewed each year within 90 days preceding the expiration date.
CITY OF ROCKFORD
Now, if you are planning to establish a business in the city of Rockford and cater to the amusement industry then you will require a license for same. You will have to file an Illinois company license application with the Rockford City Council along with the prescribed fee. The fee for the license will vary according to the type of amusement. For example, a Bowling Alley License fee will be ‘Number of Bowling Lanes x $17.’ The license fee for a skating rink will be $138.00 and if you are planning to start a Video Game Parlor then you will only require a ‘Video Gaming Permit’ and the fee would be ‘Total Number of Machines/Devices X $25.00.’
Have you identified the industry or the city you are planning to establish your business in?
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.
Illinois ranks 7th largest tech economy in the nation. (Cyberstates, 2005)
Illinois ranks 1st in States for Biotech Growth (Laboratories of Innovation: State Bioscience Initiatives, 2004)
Illinois ranks 4th for “insourcing,” or bringing in jobs to the state from foreign-headquartered international firms (Organization for International Investment, 2004)
Illinois ranks 5th in the number of privately-held, 50% or more women-owned firms in 2004, 4th in employment, and 5th in sales. (Center for Women?s Business Research)
Cost of living
For Chicago, IL (2005):
Index Score
Composite:
103.9
Housing:
105.8
Utilities:
112.4
Misc. Goods & Services:
99.9
Crime Rate
Illinois has the 23rd lowest crime ranking in the U.S. (F.B.I., 2004)
Fees & Taxes
Business Inventory Tax Business inventory is exempt.
Corporate Income Tax Rate: 4.8%. An additional personal property replacement tax is imposed on corporations at the rate of 2.5% of taxpayer’s net income.
Personal Income Tax Rate: 3% of net income
Personal Property Tax Exempt.
State Sales and Use Tax Base Rate: 6.25%
Machinery Rate: none
There is an exemption for sales of machinery and equipment, including maintenance and repair machinery, for use primarily in manufacturing or assembling tangible personal property for sale or lease.
Unemployment Insurance The new employers’ rate in Illinois is 4.7% for 3 years.
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