Illinois Foreign Qualification

Illinois has long had a strong economy, and for many businesses operating nearby it makes sense to eventually begin operating in the state. But in order to legally do so you must take steps to foreign qualify. Doing so protects you and keeps your business compliant when you start doing business in Illinois.

Speak to an Expert today about
Foreign Qualification at 888-366-9552

Why Does A Company Need Foreign Qualification?

Why You Need To Do It – Any LLC or corporation will have to foreign qualify in order to legally do any kind of business in Illinois. This includes everything from opening a warehouse or storefront to just having an associate handling sales within the state.

When Should You Do It? – The sooner your business registers to foreign qualify, the sooner it can start doing business in Illinois. Additionally, procrastinating can lead to potential deals that may disrupt your initial business plan. Generally, you will need Illinois foreign qualification if your company falls under any of the following criteria:

Has a physical presence in Illinois
Buying a property there
Have remote employees
Accepts orders in Illinois
Owns a bank account in Illinois

What Happens If Your Entity Does Not Foreign Qualify?

If you fail to foreign qualify your business, you will be unable to bring forth any kind of civil lawsuits within the state. You’ll also potentially face fees, fines, and penalties as well as back taxes and tax related penalties.

Steps To Obtain Foreign Qualification

There are a few basic steps that must be taken by a business in order to successfully register for Illinois foreign qualification. These include the following.

1. Obtain Certificates – Start by obtaining the Application for Admission to Transact Business in Illinois for LLCs. Corporations will need the Application for Authority. These forms are available at the Secretary of State website for businesses to download and complete. Additionally, LLCs need to acquire a Certificate of Good Standing or Existence from the home state while corporations must get a certified copy of the Articles of Incorporation with all the amendments and mergers.

2. Collect And Submit Information – You’ll have to provide a lot of basic information when you register.

LLC

LLC name registered in the home state
The assumed name, if original name is unavailable
Name of the home state
The original date of organization
The duration of the LLC, which should be perpetual unless the operating agreement states a dissolution date
The principal office street address
Registered agent information
The date the LLC will start conducting business in Illinois
Purpose of the LLC and the nature of its business in Illinois
The management structure
The members and managers’ names and street addresses
An authorized signature

Corporation

Name of Corporation
An assumed corporate name if the original name is unavailable
Name of the home state
The original date of incorporation
The period of duration of the company
The principal office address in the home state
The principal office address in Illinois
Registered agent information
List of all names and addresses of officers and directors
The purpose of the corporation and the nature of its business in Illinois
The class, series, and par value of the authorized and issued shares
Paid in capital amount
Estimated total value of all the property (home state), estimated total value of all the property (Illinois), State estimated total business of the corporation to be transacted by it everywhere, State estimated annual business of the corporation to be transacted by it at or from places of business in Illinois.
Verify of the corporation is transacting business in the state currently and the date it began

3. Appoint Registered Agent – You’ll have to appoint a registered agent who will be responsible for handling most aspects of foreign qualification. They accept documents from the state and pass them on to the LLC or corporation. Most businesses will turn to a third party provider such as DoMyLLC to serve as their registered agent since it takes the burden from their shoulders.

4. File The Application – Upon completion of the forms, you will file them with the Secretary of State along with a filing fee of $150 for LLCs and $175 for corporations.

5. Ongoing Maintenance – Illinois requires that any business file an annual report with the state each year. It must be filed by the end of the month before your business registered – if you registered for foreign qualification in March, your annual report must be filed by the end of February each year. The filing fee is $75.

What Is the Difference Between Foreign Qualification And Incorporating?

Incorporation is a process that creates an entirely new business. Foreign qualification doesn’t create a business. Instead, it allows your existing LLC or corporation to do business in another state – Illinois, in this case.

How DoMyLLC Can Assist With Streamlining The Process

Business leaders have a lot of different things that they have to manage. Luckily, we’re here to take the stress and the hassle out of Illinois foreign qualification. We offer:

Dedicated account managers
Ongoing, unlimited customer support
Name availability checks
Full registration and filing services

If you’re ready to begin operating in Illinois, you’ll have to foreign qualify. But instead of dealing with the process on your own, contact us. We’ll take the hard work off your shoulders and let you focus on other aspects of your business, free from worry.

Name of business
Business address
Date of business formation
Names and addresses of managers and members
Registered agent information

What If My Name Is Not Available?

You’ll have to file for foreign qualification under a fictitious name. This will have no impact on the name you operate under in your existing state.

Illinois Business Resources:

Illinois Office of Secretary of State
Phone Number:
(217) 782-6961