The document outlines the necessary steps and requirements for organizing a business entity in Illinois, including registrations with the Secretary of State, federal and state tax applications, and licenses. It details various entity types like LLCs and corporations, associated fees, and internal documents needed for compliance. Additionally, it provides links to relevant online resources for filing and registration processes.

1. Organizing an Illinois
Business Entity

2. Documents Required
• Entity Filing With Secretary of State (LLC,
C Corporation, S Corporation Usual
Forms)
• Federal Tax ID Application
• State Tax Registration
• Local Tax Registration
• Licensing, If Required

3. Entity Filing With Secretary of
State: Choice of Entity
a. Business Corporation
(subchapter C) tax at entity level and 2.5%
pass-through tax and franchise tax: qualified
small business stock capital gains tax
excluded
b. Limited Liability Company taxed
once at owner level, 1.5% pass-through tax,
$500 fee to file: Sub S business corporation
lower fee, but franchise tax and non US
owner restrictions

4. Entity Filing With Secretary of
State: Business Corp (C or S)
1. Search to see if proposed corporation
name available in Illinois:
https://www.cyberdriveillinois.com/departments/b
WARNING: State corporate name does not
give federal or state trademark rights: check
Google and USPTO/state registers, too, to
be sure name available

5. Entity Filing With Secretary of
State: Business Corp. (C or S)
2. File Articles of Incorporation online:
https://www.cyberdriveillinois.com/departmen
Fee: $281.46
Pdf form, use to check fill-in data:
https://www.cyberdriveillinois.com/publication

6. Business Corporation Internal
Organizing Documents (C or S)
Create “Corporate Book” with Articles of
Incorporation as filed with SoS and:
1.Shareholder actions to elect
Board/Officers, Shareholder agreements
2.Board actions to adopt Bylaws
3.Federal/State tax and other registrations

7. Entity Filing With Secretary of
State: LLC
1. File Articles of Organization online:
http://www.cyberdriveillinois.com/departments/busine
Fee: $614.10
Pdf form to check fill-in items for online form:
http://www.cyberdriveillinois.com/publications/pd
f_publications/llc55.pdf

8. LLC Internal Documents
Create “Corporate Book” with:
1.Articles of Organization as filed with SoS
2.Member Actions to adopt Operating
Agreement and elect Managers/other
officers (if any)
3.Tax, other registrations

9. Federal Tax ID Application
• File form SS-4 online
https://www.irs.gov/businesses/small-businesses-se
No filing fee
Pdf of form and instructions available at:
https://www.irs.gov/uac/form-ss-4-application-for-em

10. Sub S Corporation Election
• File form 2553, available with instructions
at:
https://www.irs.gov/businesses/small-
businesses-self-employed/s-corporations
No need to file for C corp status or LLC
pass-through (no entity level tax)
treatment

11. State Income/Sales/Excise Tax
Registration
File through My Tax Illinois online:
http://www.revenue.state.il.us/businesses/re
gister.htm
Pdf of form REG-1, to check fields to fill in
online, available at:
http://www.revenue.state.il.us/taxforms/Reg/
REG-1.pdf
Need federal EIN to file, do this after SS-4

12. State Unemployment Insurance
Tax Registration
Online registration required within 30 days
of organization: Use Illinois Tax Net:
http://www.ides.illinois.gov/Pages/Are_you_
a_new_employer_register.aspx
Pdf of form UI-1 available, to check fill
ins needed for online form:
http://www.ides.illinois.gov/IDES
%20Forms%20and%20Publications/UI-1.pdf

13. Local Tax Registration
Chicago requires registration: most other
cities instead have “general business
license”, not so many special taxes)
Chicago Department of Revenue
WebTax:
https://www.cityofchicago.org/city/en/depts/fi
n/provdrs/tax_division/svcs/pay_and_file_yo
urtaxesonline.html

14. State Licenses
• Many industries have separate
incorporation/registration or permit
requirements. See generally:
https://www.illinois.gov/business/pages/registrat
ion.aspx
• Individual licenses (except law) generally
available through Department of Financial
and Professional Regulation:
https://www.idfpr.com/

15. Local Licenses
• Licenses required for different lines of
business vary by county, city, sometimes
township
• City of Chicago licenses, see:
https://www.cityofchicago.org/city/en/depts
/bacp/sbc/business_licensing.html

16. Entity Service Options
Do it yourself: state/local fees, use links in
this presentation, copy available if email
wprice@growthlaw.com

17. Legal Service Options
Basic: state fees plus $250 gets LLC or corp
organized plus EIN
Corporate Book Setup Package: Articles of
Organization, EIN, bylaws or Operating
Agreement, initial entity actions, bank
resolutions: $500 plus state fees
Deluxe: Setup package plus tax/license
forms and registration help: $350/hour, (est.
10 hours) or $3500 flat fee plus state fees

18. For More Information/CC of
Presentation
Contact William A. Price, Attorney at Law
www.growthlaw.com
Tel: 1-800-630-4780
P.O. Box 1425, Warrenville, IL 60555
Email: wprice@growthlaw.com