Incorporating in Illinois

Corporate Name Endings

* The name shall contain word “corporation,” “company,” “incorporated,” or “limited,” or an abbreviation thereof. The name shall not contain any word or phrase which indicates or implies that it is organized to conduct business of insurance, assurance, indemnity, acceptance of savings deposit, banking, or corporate fiduciary. The name shall be distinguishable from the name of any domestic or foreign corporation authorized to transact business or a name exclusive right to which is, at the time, reserved or registered.

Articles of Incorporation Requirements

Director Information

  • Minimum Number – One or more.
  • Residence Requirements. – No provision.
  • Age Requirements – None.
  • Directors are not required to be listed in the articles of incorporation.

Officer Information

  • The officers are not required to be listed in the articles of incorporation.

Stock Information

  • An increase in the shares may cause an increase in the initial filing fee.

Yearly Requirements

Annual Statements

  • The annual franchise tax payable by each domestic or foreign corporation is computed at the rate of 0.1% of stated capital for the 12-month period beginning on the 1st day of the anniversary month. The tax cannot be less than $25 or more than $1 million per year.
  • The annual report must be filed within 60 days immediately preceding the first day of the anniversary month of corporation each year (or in the case of a corporation which has established an extended filing month, the extended filing month of the corporation each year). Filing fee, $15.

Income Tax Rate

  • 4.8% of the corporation’s net income.

Franchise Tax Rates

  • The basis for an additional franchise tax payable by a domestic corporation is (1) the increased amount represented in Illinois of its paid-in capital, or (2) in the case of a merger or consolidation, the increased amount represented in Illinois of the paid-in capital of the surviving or new corporation. The basis for the annual franchise tax payable by a domestic corporation is the amount represented in Illinois of its paid-in capital on the last day of the 3d month preceding the anniversary month. The “taxable period” is the 12-month period commencing with the first day of the second month preceding the corporation’s anniversary month in the preceding year and prior to the first day of the second month immediately preceding its anniversary month in the current year.
  • The annual franchise tax payable by each domestic or foreign corporation is computed at the rate of 0.1% for the 12-month period beginning on the 1st day of the anniversary month. The tax cannot be less than $25 or more than $1 million per year.
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C-Corporation

  • Shareholders have limited liability protection
  • May be listed and traded as a publiccorporation on the stock market or “over the counter”
  • Has a separate and independent tax status from its owners

S Corporation

  • Profits are not subject to “double taxation”
  • Corporate losses may be “passed through” to share holders
  • Shareholders are afforded the same protection as C Corp.

LLC formation

  • Contains characteristics of both corporation and partnership
  • Shareholders may take advantage of “Pass-Through” taxation
  • Limited liability for share holders

Not for profit corp

  • Eligible for tax-exempt status
  • Limited Liability protection
  • Qualify for public and private gains