How to Start a Nonprofit in Illinois
To incorporate a nonprofit in Illinois, file nonprofit Articles of Incorporation with the Illinois Secretary of State. This filing officially creates your organization, but it is really just one step toward pursuing your nonprofit’s goals. The main steps to forming an Illinois nonprofit are as follows:
- File nonprofit Articles of Incorporation
- Get a federal EIN tax ID from the IRS
- Register for a state tax ID with the Illinois Department of Revenue
- Hold your organizational and adopt bylaws
- Apply for federal and/or state tax exemptions
- Register as a charity
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Illinois nonprofit Articles of Incorporation free download. When you’re done filling out the form, submit it to your state.
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1 Day Illinois Nonprofit For $302.75 Total
How To File Illinois Nonprofit Articles Of IncorporationTo form an Illinois nonprofit, file nonprofit Articles of Incorporation using the following steps:
How Much Does It Cost To Incorporate An Illinois Nonprofit?
Illinois charges $50 for the Secretary of State’s routine filing time (around 30 days), but you can also pay an extra $25 for expedited, 24 hour service, and the state will charge an additional processing fee if you pay with a credit card. Hire Northwest to form your Illinois nonprofit, and your total, which includes a full year of registered agent service, is $275 for 30 day filing and $302.75 for expedited one day filing.
If your nonprofit is a non-religious charity, you’ll pay an additional $15 fee to register as a charity with the Illinois Attorney General’s office.Get Started
How Much Does An Illinois Nonprofit Cost Each Year?
All nonprofits submit an annual report, which comes with a $10 filing fee, and most non-religious charities pay $15 each year to renew their registration with the Illinois Attorney General’s office.Get Started
What Is The Illinois Nonprofit Annual Report?
The Illinois annual report updates (or confirms) your nonprofit’s information as it appears on the state’s records, including your nonprofit’s name and registered agent information (among other details). There is a $10 filing fee for nonprofits, and you can file online at the Illinois Secretary of State’s website or by mail. The deadline is always prior to the first day of the anniversary month of your nonprofit’s incorporation with the state.
Hire Northwest, and we’ll remind you when your annual report’s deadline approaches, but you can also sign up for our Illinois Annual Report Service and leave the entire process to us.
Is An Illinois Nonprofit Registered Agent Required?
Yes, your nonprofit is required to appoint an Illinois registered agent. You can do the job yourself, appoint a willing associate, or hire an authorized business that provides registered agent service (like Northwest). We recommend hiring a registered agent service.
Why? Because your registered agent has to be available during normal business hours to receive services of process, which isn’t an easy job for an individual human being. If you take on the job yourself, you can’t get bogged down in lengthy business meetings, travel to meet with potential donors, take vacations, or do much of anything, really, that takes you away from your nonprofit’s registered office. The address you list also goes into the public record, so you will most likely deal with a lot of junk mail, spam, and unwanted solicitors.
When you hire Northwest, however, our Illinois address replaces yours, and we will always scan services of process and send them to you on the day we receive them. We help you protect your privacy, keep your organization in good standing with the state, and free you up to manage your nonprofit’s vision on your own terms.
desks, not you. You’ll have more privacy, receive less junk mail, and have the freedom to manage and grow your nonprofit on your own terms.Get Started
Will My Illinois Nonprofit Be Tax-Exempt?
Not immediately. First, you need to get the IRS to recognize your nonprofit as a tax-exempt organization, and that takes more than a little time and effort. You’ll submit the detailed Application for Recognition of Exemption to the IRS, pay a hefty filing fee, and wait around 3-6 months while the IRS examines your organization and makes its decision. If your nonprofit intends to seek 501(c)(3) tax-exempt status for public charities and private foundations, be sure your Articles of Incorporation include the special language required by the IRS that dedicates your activities exclusively to the pursuit of one or more tax-exempt purposes.
If your nonprofit obtains federal tax-exempt status, it’s then automatically exempt from the Illinois state income tax. To get an Illinois sales tax exemption, however, you’ll need to file Form STAX-1 (the Application for Sales Tax Exemption) to the Illinois Department of Revenue. Learn more at Northwest’s guide to Illinois state tax exemptions.
Do I Need A Federal Tax ID Number (EIN) For My Illinois Nonprofit?
You will need a federal employment identification number (FEIN or EIN) if you want to apply for a bank account in your nonprofit’s name and apply for federal and/or state tax exemptions. After the Illinois Secretary of State approves your articles, you can apply for an EIN on the IRS website or by phone. You can also add our EIN service for an additional fee when you hire Northwest.
Does An Illinois Nonprofit Need A Business License?
Illinois doesn’t require a statewide business license, but some cities and counties have licensing requirements of their own. It’s best to contact your city and county clerks and research your local requirements before conducting business in Illinois.
Should My Nonprofit Get An Illinois State Taxpayer ID?
Yes, your nonprofit should register for a state taxpayer ID with the Illinois Department of Revenue before hiring any employees or making any purchases or sales (basically, before doing business of any kind). You can register by submitting a Business Registration Application (REG-1) online at the MyTax Illinois website or by sending your printed application to:
Central Registration Division
Illinois Department of Revenue
PO Box 19030
Springfield, IL 62794-9030
Do I Have To Register My Nonprofit As A Charity In Illinois?
If your nonprofit will collect donations, you will need to register as a charity with the Illinois Attorney General. There is a $15 registration fee, and an additional $15 fee each year when you submit your Charitable Organization Annual Report (Form AG0990-IL), not to be confused with the annual report you will submit each year to the Illinois Secretary of State! The charitable annual report’s deadline is 6 months after the close of your nonprofit’s fiscal year. If your nonprofit is a religious charity, however, it may be exempt from the annual reporting requirement and fee.
Whatever you do, make sure to register before soliciting donations in Illinois, and always submit your charitable annual report on time. The Illinois Attorney General charges a $200 fee if you solicit contributions prior to registration and a $200 re-registration fee for nonprofits that don’t file annual reports by the deadline.
Can I Register An Out Of State Nonprofit In Illinois?
Absolutely. You can register an out of state nonprofit (also called a “foreign nonprofit”) by filing the appropriate paperwork with the Illinois Secretary of State. See our Illinois foreign nonprofit page for more information.
Illinois Nonprofit Articles Of Incorporation Requirements
Your nonprofit’s name needs to clearly differ from any existing business entity operating in Illinois, and it can’t contain words indicating established political parties (for example, “democratic,” “democrat,” and “republican”). You can do a name search at the Illinois Secretary of State’s website. An optional 90-day name reservation is available for a $25 fee.
Registered Agent and Registered Office
Your registered agent needs to be a natural individual (such as yourself or a willing associate) or a business authorized to provide registered agent service. In either case, the agent needs an office with a street address in Illinois to receive services of process. When you hire Northwest, our name and Illinois street address go here.
Illinois has some pretty specific guidelines for how to describe your nonprofit’s purpose. You must select from one of 33 allowable purposes (“charitable,” “eleemosynary,” “athletic,” etc.), which you can read through on the Illinois Secretary of State’s website, and you’ll also provide a more detailed description of your nonprofit’s purpose to supplement the selected category. Moreover, if you intend to apply for federal tax-exempt status with the IRS, keep in mind that some of Illinois’s allowable purposes won’t qualify as exempt purposes in the eyes of the IRS. Check out our guided to understanding the IRS 501(c)(3) requirements to see the specific tax-exempt language required by the IRS.
The First Board of Directors
Illinois requires your nonprofit to have at least 3 directors. Your directors don’t have to be residents of Illinois or members of your nonprofit unless you craft your bylaws or additional provisions to include requirements of this kind.
You may also include additional, optional provisions that govern your nonprofit, including descriptions of your directors’ and officers’ duties (some of this material, however, may appear in your bylaws instead). More importantly, if you intend to apply for 501(c)(3) tax-exempt status as a charity, for instance, you should include a statement of purpose and a description of your nonprofit’s procedures for preventing individual enrichment if and when your nonprofit dissolves (often called a “dissolution clause”). If your Articles include additional provisions, you will need to print and mail in a paper form instead of filing online.
Include the name and address of at least one incorporator. An incorporator is simply the person who signs and submits your articles of incorporation, and it doesn’t need to be a director, officer, or member of your nonprofit. When you hire Northwest to form your nonprofit, we will be your incorporator.