How to Start a Business in Illinois (Step by Step Guide)

Starting Business in IllinoisThinking about starting your own business in Illinois? If so, then you have come to the right place!

On this page, you can find step by step instructions on how to incorporate your business in Illinois. From selecting the business entity type to forms to be filled, we have covered it all.

Let’s get Started

The first step in setting up your business is to select the business structure.

Broadly there are 4 types of business entities that can be registered:

  1. Limited Liability Company (Most Popular)
  2. Corporation
  3. Sole Proprietorship
  4. Partnership

Each business structure differs on the basis of taxation, asset liability and estate planning. We have written a detailed tutorial on how to choose a business entity type for your business here.

Below we have given a broad outline of the steps involved in registering an LLC or Corporation in Illinois.

Clicking on each step, opens up a detailed guide on how to complete it.

How to Start an LLC in Illinois

Agency ResponsibleIllinois Secretary of State – Business Services
Form(s) to be filledArticles of Organization
ModeMail, fax, Online
Name ReservationOptional, Fee $25 (Mail) [Option to Expedite]
Filing Fee$150 + Expedite fee: $100 (optional)
Time2 weeks (Option to expedite)
LawBUSINESS ORGANIZATIONS (805 ILCS 180/) Limited Liability Company Act.


Summary:

  1. Search for business name availability on Illinois SOS website
  2. File for Business name reservation (Optional)
  3. Select a Registered Agent
  4. Fill Articles of Organization (Form LLC 5.5)
  5. Draft an Operating Agreement
  6. Get an EIN Number (IRS Form SS-4)
  7. Obtain Illinois Tax ID
  8. Obtain relevant licenses and permits
  9. File Annual Report (Ongoing)

How to Start a Corporation in Illinois

Agency ResponsibleIllinois Secretary of State – Business Services
Form(s) to be filledArticles of Incorporation (Form BCA 2.10)
ModeMail, fax, Online
Name ReservationOptional, Fee $25 (Mail) [Option to Expedite]
Filing Fee$150 + Expedite fee: $100 (optional)
Time2 weeks (Option to expedite)
LawIllinois Code – 805 ILCS 5

Summary:

  1. Search for a Business Name
  2. File for Business Name Reservation(Optional)
  3. Select Registered Agent
  4. Articles of Incorporation (Form BCA 2.10)
  5. Create Bylaws
  6. Get Federal EIN Number
  7. Obtain Illinois Tax ID
  8. Obtain relevant licenses and permits
  9. File Annual Report (Ongoing)



References:
http://www.cyberdriveillinois.com/departments/business_services/organization/llc_instructions.html
https://statelaws.findlaw.com/illinois-law/illinois-corporations-laws.html

Last fact-checked on 25/07/2018

5

Illinois Business Entity & Corporation Search

Looking for information on how to conduct business entity search in Illinois? Well, you’ve come to the right place. Department of Business Services, a subdivision of Illinois Secretary of State maintains the database of all the registered businesses in the state. Basic information about businesses can be accessed for on the Secretary of State website. […]

Continue reading