Filing a Illinois Corporation
Registering as an Illinois Corporation could provide many benefits, such as tax breaks and instant credibility with consumers. However, if you have not created a business before, you could find yourself overwhelmed by the process. To ensure the filing is approved with the state of Illinois, it’s imperative that you meet all administrative and regulatory requirements.
Steps To Filing a Illinois Corporation
Choose A Name
The first thing that new business owners must do is choose a name for their entity. The state of Illinois requires all companies to include an indicator in their name, such as “Corporation,” “Incorporated,” “Company,” “Limited,” or any abbreviation of these terms, such as “Inc.” Additionally, owners must ensure that the name under which they wish to register is not already in use by another entity. To prevent this from happening, owners can take advantage of the DoMyLLC Name Availability Check Page.
Choose An Agent For Service Of Process
After choosing a name, prospective Illinois Corporation owners will need to find a registered agent. The registered agent is responsible for accepting all legal correspondence on the company’s behalf. Their role is more integral to a company’s success than many realize. To put the company in the best position for success, owners should consider hiring a professional third-party company, such as DoMyLLC, to serve as the registered agent.
File Articles Of Incorporation & Pay Filing Fees
Once owners have chosen a name and registered agent, they can begin filing the paperwork necessary to create their company. They’ll want to submit Articles of Incorporation to the Business Services Department of the Secretary of State’s office. The fee structure associated with this document is a bit complicated.
All entities must pay a minimum filing fee of $175. There is an optional $100 expedite payment. Filing online is considered “expedited” for this purpose. There is also a franchise tax equal to $1.50 per every $1,000 of paid-in capital. Unlike some other states, Illinois does not accept personal check or credit card as forms of payment. Instead, new business owners must pay using a cashier’s check, certified check, money order, or an Illinois attorney or CPA’s check.
Information required on the form includes:
- The name of the company
- Name and address of the registered agent
- The purpose for which the Corporation is organized
- Authorized shares, issued shares, and consideration received
- Optional: Information about directors
- Estimates about property value
- Name, addresses, and signatures of incorporators
File Initial Report
The state of Illinois does not have an Initial Reporting requirement. But owners should be mindful of the fact that should they expand into another state, they may need to file Initial Reports
Create Corporate Bylaws, Appoint Directors And Hold Meetings
After submitting the Articles of Incorporation, members should hold the initial corporate meeting. In attendance at this meeting should be the directors who were listed on the Articles of Incorporation. These directors will serve in this capacity on the board until the next annual meeting of shareholders, where directors are up for re-election.
If incorporators chose not to list directors on the Articles of Incorporation, they then are responsible for overseeing the meeting. Incorporators should appoint individuals to the board of directors at this meeting and record this information in the corporate records.
Once the board is in place, directors should draft corporate bylaws, elect officers, and define the roles of the organization’s leadership. Corporate bylaws are a private, internal operating manual. A Corporation cannot exist or operate until the board of directors has adopted a set of bylaws. Additionally, many banks and insurers will not work with a Corporation if they have not adopted bylaws.
While at the initial corporate meeting, directors should also issue stock and begin maintaining the stock ledger. The board of directors approves the issuance of stock. The amount of stock they can issue should be defined in the Articles of Incorporation. The board is responsible for issuing stock throughout the life cycle of the Corporation. The stock ledger helps maintain transparency and protect the corporate veil.
Obtain Employer Identification Number
An Illinois Corporation will also need to obtain an Employer Identification Number from the IRS. This allows them to file taxes, open a business banking account, and hire employees.
File Illinois Required Annual Reports
The Illinois Corporation will need to file an Annual Report each year. It is due before the first day of the registration anniversary month. For instance, if a business incorporates on July 14, the report is due June 30. There is a $75 fee to file, along with a minimum franchise tax of $25. The expedite fee is $50. Learn more on our Illinois Annual Report page.
Each year, the Illinois Corporation must also file taxes and renew business licenses.
How DoMyLLC Can Assist With Streamlining The Process
At DoMyLLC, we handle your administrative needs so that you can focus on your business. Our services include:
- Name availability check
- Prepare Articles of Incorporation
- File Articles of Incorporation with the Secretary of Illinois’s office
- Provide sample bylaws, meeting notices and minutes for meetings
- Dedicated account manager
- Unlimited customer support
We pride ourselves on our customer service. Contact us today to learn more about we can help your business.