Illinois Business Filing Tips
No one loves paperwork, but with these filing tips, anyone can form a company in Illinois. We cover what you need to figure out before you file your Articles of Organization/Incorporation, how to file, and what to do after you file.
Filing Tips:
- Check on Business Name Availability
- Appoint an Illinois Registered Agent
- Create an Operating Agreement/Corporate Bylaws
- For Faster Turnaround, File Online
- Prepare for State Tax and Reporting Requirements
With almost a decade of experience forming businesses in Illinois, we’ve mastered the art of speedy, accurate business filing. Hire us to file your formation paperwork for $303 total. This includes state fees, a year of Illinois registered agent service, AND a free 90-day trial of our business website, email, and phone services.
#1 Tip for Easy Filing: Hire Us!
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Annual Report Compliance Service at No Upfront Cost
Lifetime Local Support from Illinois Business Experts
Before You File
Tip #1: Check on Business Name Availability
If you submit a filing with a company name that is already in use by another business, your filing will be rejected. To avoid this issue, you can conduct a simple Illinois Business Entity Search. If you perform a search and there are no records found for that name, then the name is (most likely) available for use.
Another way to check if your preferred name is available is to submit a Corporate Name Availability Inquiry Form or call the Secretary of State’s office.
Tip #2: Appoint an Illinois Registered Agent
Every business entity in the state must have an Illinois registered agent. Your registered agent’s job is to accept state and legal notices sent to your business and forward them promptly to you. You’ll need to appoint a registered agent before you file your formation paperwork.
You can appoint yourself as registered agent if you live in Illinois, but if you do, you’ll need to keep regular business hours at your registered office address, in case you need to accept a legal notice in person. This often isn’t practical for business owners who work from home, keep nontraditional hours, or travel regularly.
Another option is to hire a registered agent service. At Illinois Registered Office LLC, we provide Illinois registered agent service for $49 per year.
Tip #3: Create an LLC Operating Agreement/Corporate Bylaws
Whether you’re forming an LLC or a corporation, it’s essential that you create a governing document for your company. Your governing document lays out the ownership and management of your business. For LLCs, this is known as an operating agreement. For corporations, it is called corporate bylaws.
A governing document is not filed publicly (unless you are a publicly traded corporation) and you will not be asked to submit it to the Secretary of State. But it is useful to write in advance, as the ownership of your company is laid out in this document.
NOTE: Operating agreements and bylaws are legally binding documents, so it’s a good idea to consult a lawyer before finalizing yours. When you hire us to form your company, we’ll send you a custom operating agreement or bylaws template to get you started.
How to File
Tip #4: For Faster Turnaround, File Online
For most companies, filing your formation paperwork online through the Illinois Secretary of State website is faster and more efficient than filing by mail. Online filings take up to 10 business days (regular processing), or 24 hours (expedited). Mailed filings can take up to three weeks, and there is no expedited option. However, not all companies can file online. Below, we break down the process for LLCs and corporations.
Formation Documents & Fees:
- LLC: Articles of Organization ($150)
- Corporation: Articles of Incorporation ($150)
- Not-for-Profit Corporation: Articles of Incorporation – Not for Profit ($50)
For expedited processing, add an additional $100.
LLC Online Filing
You can form an LLC online, but there are certain restrictions. In order to process your LLC, your company must meet ALL of the requirements:
- Existence: Your company must come into existence at the time of the electronic filing, not a later date.
- General Purpose Clause: A purpose clause is the section of your Articles of Organization that refers to the character of your business. Your business must be organized for a general purpose, as opposed to providing a professional service for which you’d need a license (like medicine).
- No Optional Provisions: Your articles cannot contain any optional provisions, which means you cannot add any additional provisions not already covered by the Illinois Limited Liability Company Act.
- No Dissolution Date: Your company must exist perpetually without a planned date of dissolution.
- Organizer: You can only include the name of one organizer when forming your LLC, and your organizer cannot be someone executing the document on behalf of someone else through power of attorney.
If your LLC meets ALL of these requirements, then you’re in the clear to file online. Otherwise you’ll need to submit the paper Articles of Organization form by mail or in person. (Expedited filing only available in person.)
Corporation Online Filing
Corporations can be formed online as long as they meet the following requirements:
- Only One Class of Stock: You can only issue Common Stock. You cannot issue any Preferred Stock through an online filing.
- General Purpose Clause: A purpose clause is the section of your Articles of Incorporation that states what your company is being organized to do. To file online, you must be able to use the general purpose clause, “The transaction of any or all lawful purposes for which corporations may be incorporated under the Illinois Business Corporation Act.” Professional Corporations and Medical Close Corporations CAN’T use the general purpose clause.
If your corporation doesn’t meet these requirements, you’ll need to file by mail or in person using the paper Articles of Incorporation form.
Bonus Tip: If you want expedited filing and can’t file online, hire us and get free courier service. We’ll deliver your expedited filing in person for no extra charge.
After You File
Tip #5: Prepare for State Tax and Reporting Requirements
Starting a company isn’t a “one and done” activity. To keep your company active, you’ll need to file the Illinois annual report each year and stay on top of tax requirements.
Illinois Franchise Tax
Illinois corporations are subject to the state franchise tax. (LLCs are not.) You’ll calculate and pay this tax as part of the annual report. It’s a pretty complex tax, so most corporations hire a tax accountant to handle this filing.
The franchise tax is based on the amount of paid-in capital your corporation has. Paid-in capital is the amount of capital your shareholders have contributed in exchange for their stock (this includes yourself). If your shareholders have paid cash, then this is amount of cash exchanged. If your shareholders have contributed assets, such as property, then this includes the value of those assets.
As of 2025, the first $10,000 of liability is exempt, so you may not owe anything other than the $75 annual report filing fee.
Annual Report
Both LLCs and corporations are required to file an Annual Report every year with the Illinois Secretary of State. Annual Reports are due the day before the month in which you incorporated your business. If you formed you company in November, then your Annual Report would be due by October 31 each year.
Annual Report Fees
- Illinois LLC: $75
- Illinois Corporation: $75 plus Franchise Tax
Your Illinois Annual Report is due by the end of the month prior to your anniversary date. (For example, if you formed your LLC in November, you’d have until October 31st to file your annual report.)
You can file Annual Reports online through the Illinois Secretary of State website. This is the recommended method, as the filing is processed immediately. Failure to file your Annual Report is a serious offense which can lead to your company being administratively dissolved by the Illinois Department of Business Services.
Annual Report Compliance Service
To help keep you from worrying about your annual report filing at all and make sure your business stays in good standing, we include enrollment in our Annual Report Compliance Service with Registered Agent and Company Formation Service. You’ll pay nothing upfront and we’ll send you reminders as your due date gets near.
You can keep the service (and know that your report will be filed well ahead of time) or cancel and file for yourself. Compliance Service costs just $100 plus state fees and can be added to other services, such as out-of-state registration, as well.