Illinois Corporation

You can get an EIN directly from the IRS. The application is free, and most businesses can apply online. However, if you don’t have a social security number, you’ll need to submit a paper application form. Can’t bear to fill out yet another application? Hire Northwest to get your EIN for you. Just add on EIN service during checkout when you sign up for our incorporation service.

Corporate bylaws cover basic policies and procedures for issues such as company finances and management. Bylaws should cover a range of topics, answering key questions like those below:

• Meetings: When and where will meetings for shareholders and directors be held? How many attendees are required to transact business? What are the procedures for voting or proxy voting? How do you call a special meeting? What actions can be taken without a meeting?

• Stock: How are stock certificates issued and transferred? How is voting affected by issues such as corporate stock owners or fractional shares?

• Directors and officers: How many directors must there be? Which officer positions are required? What powers do they have? How do you fill a vacancy or remove a director or officer?

• Finances: What are the procedures for retaining profits, issuing dividends, and paying bills? Who can withdraw money from the corporate bank account or sign checks?

• Records: Where is the corporate book to be kept? What information will be maintained? How are requests for review or access honored? Can records or copies be kept or distributed digitally?

• Amendments and emergencies: Who can amend bylaws and how? Can emergency bylaws be adopted in the case of disaster?

Illinois bylaws can make other provisions as well, assuming additions are in accordance with state law. For example, §805 ILCS 5/2.10 states that Illinois bylaws can authorize or limit preemptive rights (the ability of shareholders to buy future shares before they become available to the public).

Creating bylaws can be overwhelming—where do you start? Northwest can help. We give you free corporate bylaws when you hire us to form your Illinois corporation. We know what kinds of topics and questions corporations need to address, and we’ve spent years refining and improving our forms. We offer many other free corporate forms as well, including templates for resolutions and meeting minutes.

A minimum of $75. The annual report has a flat fee of $75, but you’ll also need to pay however much franchise tax is owed. There is some good news though—the state is phasing out the franchise tax over the next few years. In the meantime, franchise tax exemptions increase each year until the tax goes away in 2024. In 2021, the first $1K is exempt. In 2022, the first $10K is exempt, and in 2023, the first $100K is exempt.

The filing is due before the first day of your anniversary month (the month you first incorporated). For example, if you formed your business on April 17th, you’re required to file by March 31st.each year.

These filings can be easy to forget—which is why we send our clients automatic reminders for your Illinois Annual Report and Franchise Tax filings. Or better yet, let us file for you. With our business renewal service, we send you the completed annual report for you to add your tax information, then submit the report for you for $100 plus the state fee and any tax owed.

Besides the annual franchise tax discussed above, Illinois corporations have two more major taxes to contend with: a corporate net income tax and a personal property replacement tax.

The corporate income tax rate is a flat 7%. The personal property replacement tax (which weirdly has nothing to do with property) also taxes net income. The rate is 2.5% for standard C corporations and 1.5% for S corporations. Essentially, this means a typical corporation pays a combined 9.5% rate on their net income.

The Illinois sales tax is 6.25%. City, county and specialty sales taxes can be tacked on as well, making the average total sales tax 7.758%.

Yes, if you conduct business in Illinois, you’re required to register with the Illinois Department of Revenue. You can register via MyTaxIllinois or by filing an Illinois Business Registration Application. You’ll need your EIN before you can register.

At least $175. The base filing fee is $150, but the state’s initial franchise tax is also due upon filing. The tax is $1.50 per $1K of paid-in capital in the state with a minimum tax of $25. If filing online, there’s also a “payment processor fee” of a few dollars.

Hire us for a one-time fee of $405, including the state filing fees and minimum franchise tax fee.

24 hours expedited. Have some time and want to save a hundred bucks in extra fees? Forgo expediting processing and receive your approval in about 10 days.

There’s no general, statewide business license required in Illinois, but some cities and counties have local requirements. For example, while Chicago only licenses specific business activities, Evanston requires all businesses to obtain a license and renew it each year.

For some license applications you may need an EIN or a certified copy of your Articles of Incorporation. At Northwest, we can streamline the process and get these for you—simply add on these items during checkout.

A corporation formed outside of Illinois—but which conducts business in the state—is considered a foreign Illinois corporation. For example, if you incorporated in Indiana but decide to open a storefront in Illinois, you would be a foreign Illinois corporation. This also means you would need to register with the state by filing an Application for Authority with the Illinois Secretary of State. Foreign corporations are required to file the Illinois Annual Report and Franchise Tax each year as well.

Absolutely! We’re happy to start a nonprofit corporation for you. Note that incorporating an Illinois nonprofit requires a different form. The filing fee is lower as well. Illinois nonprofits do not file the state’s franchise tax but must file an annual report each year ($10).

It’s a conundrum: you need a local number to display on your website and give to customers, but you don’t want to make your personal number quite so…public. We get it. And we’ve got you covered with Northwest Phone Service. We can provide you with a virtual phone number in any state—plus unlimited call forwarding and tons of easy-to-use features. You can try Phone Service free for 60 days when you hire us to form your corporation, and maintaining service is just $9 monthly after that. No contract required.