Do I Need To Register A Simple Business Partnership In Illinois

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TLDR

The state of Illinois is home to ane.2 meg pocket-sized businesses, employing 2.five million people. Peak industries include professional scientific, technical services, construction, health care, and social services.
As a startup, when you register a concern in Illinois, you'll need to satisfy several requirements to successfully register your organization and be in compliance with country regulations.
Before you register your startup, y'all demand to determine its legal entity structure, such as a limited liability visitor, a general partnership, or a c-corporation.
In improver to choosing your startup's structure, y'all'll as well have to choose its name and registered agent. When picking a proper name for an LLC, corporation, or limited partnership, you lot'll need to distinguish it from other business names already registered inside Illinois while following the state's naming conventions.
Side by side, information technology'due south time to submit your formation certificate to the Illinois Secretarial assistant of State's Department of Business Services. For new or converting entities, the Country of Illinois provides sample forms for your use or review.
Unlike other states, Illinois has a few requirements for where to register a business.
Depending upon your called entity structure, yous besides need to empathize and be prepared for the expenses associated with registering a business. For instance, for registering a corporation in Illinois, you must pay a $150 filing fee. If you annals as a limited liability partnership, each partner must pay $100, with a minimum fee of $200.
When registering your startup with the Illinois Department of Acquirement, y'all typically will non have an boosted filing fee unless you lot are engaged in certain businesses, such as providing dry out cleaning services or selling tobacco products.
If you established your startup in another state, and yous'd like to register in Illinois as well, yous must file an Application for Authority.

Introduction

Illinois is domicile to 1.ii million small-scale businesses , employing 2.5 million people in the state. Industries leading the way in Illinois' small business sector include professional scientific and technical services, structure, health care, and social assistance. Further, Illinois comes in fourth in housing Fortune 500 companies , trailing New York, California, and Texas. Some of these giants include Walgreens, State Farm, and Boeing.

If you are considering Illinois every bit your state of record for your startup, this commodity will explore how and where to annals a startup in Illinois, focusing on what you should practise each step of the fashion.

When Do You lot Need to Annals a Business in Illinois?

When you register a concern in Illinois , you'll need to satisfy several requirements successfully and compliantly. Before registering your startup, it's a good idea to create a business plan, establishing a roadmap for moving frontward.

In drafting your concern plan, y'all'll want to consider your go-to-marketplace strategy, marketing and sales approaches, location, and buying -- to proper name a few topics. To assistance guide you, you can bank check in with the U.South. Small Business organization Administration or the State of Illinois , both of which provide additional guidance for determining the feasibility of starting your business as well as how to create a business plan.

Once you lot've identified some of the basics about your operations, it is then fourth dimension to register your startup. Below, nosotros've broken these requirements down into a stride-by-stride process.

Determine Your Business'due south Entity Construction

Before you register your startup in Illinois, you must determine your its legal entity structure . For instance, in Illinois, yous may choose to register every bit a(due north):

S-Corporation
C-Corporation
Express Liability Company (LLC)
General Partnership (GP)
Limited Partnership (LP)
Limited Liability Partnership (LLP)
Sole Proprietorship

Your chosen business entity determines the next steps in registering your startup. To larn more well-nigh Illinois' permissible entity types and the unlike rules applying to each, please visit the websites for either the Illinois Department of Acquirement or Secretarial assistant of State .

For example, when a concern name differs from the names of the owners, the Illinois Assumed Business Name Deed requires a sole proprietorship to "register with their local county clerk'due south office for registration under the Assumed Name Act." However, a sole proprietorship is non required to file as a new entity with the Illinois Secretary of Country's Department of Business Services. Continue in mind, though, that you may take other filing requirements depending upon your concern blazon, such as a concern license.

If you choose to organize your startup equally a limited liability visitor or a corporation, yous must follow specific steps to register it. For example, to register a corporation in Illinois, you lot'll need to file Manufactures of Arrangement with the Illinois Department of Business Services , which is office of the Secretary of State's office. The Illinois Secretary of Country website has sample documents for you to use. Nosotros talk over filing an Illinois LLC in more detail beneath.

Cull Your Business organization'due south Proper name

In addition to choosing your startup's structure, you'll also have to choose its name. When picking a name for an LLC, corporation, or limited partnership, y'all'll need to distinguish it from any other business names already registered with the country. Utilize proper designations such as "LLC" or "Limited Liability Company," as applicable, in your startup's proper name. You lot can check for available names by visiting Illinois' business concern entity name search .

Additionally, if you're not prepare to register your business in Illinois, but you desire to preserve the name of your startup, you may reserve its proper noun for upward to ninety (90) days by filing a Reservation of Name Application . The fee for reserving an entity proper noun is $25.

Identify Your Registered Agent

Next, you need to place a registered agent. A registered agent is a person or entity that tin can take public service of any courtroom documents on behalf of your startup. If you designate an private, that person should reside in Illinois. If you select an entity, and then that concern must be authorized to transact business and be in adept standing with the state of Illinois.

Submit Your Formation Forms

Finally, after yous complete the above steps, it's time to submit your formation forms to the Illinois Secretary of State's Department of Business Services. For new or converting entities, Illinois provides sample forms for your use or review. For case, suppose yous choose a limited liability company, a limited partnership, or corporate construction. In that case, you can apply the land's official forms , or you lot may apply your own document, as long as it meets all the rules specified by law.

Let's look at a specific example. If you choose to register your startup as an LLC in Illinois, you will file an Articles of Arrangement (Form LLC 5.5) (in duplicate) with the Department of Business concern Services. You may file online or through the U.Southward. Mail. The filing fee is $150. If necessary, you can asking an expedited filing, which requires an boosted fee of $100. If you file for an expedited filing, your Articles will exist filed within twenty-4 (24) hours of receipt, non including weekends or holidays. Expedited filing is not bachelor by mail.

Where Do I Register a Business in Illinois?

Unlike other states, Illinois has a few requirements for where to register a business. We'll walk through these steps below:

If yous are a sole proprietorship or a general partnership, you must register your business name under the Assumed Business Name Act with your local canton clerk'south office .
Next, register for an Employer Identification Number with the Internal Acquirement Service.
And so, file your entity documents, such as your Articles of Organization, with Illinois Department of Business Services, by U.S. Mail or online.
Register your startup with the Illinois Department of Acquirement (IDOR), if applicative. If y'all "plan to hire employees, purchase or sell products wholesale or retail, or manufacture appurtenances, you must register with the IDOR ." You may file online by filing an Illinois Business organization Registration Application (Class REG-one) to complete this step.
Finally, check with your city and canton to determine if y'all must besides register for local taxes or whatsoever other required permits.

How Much Does It Cost to Annals a Business in Illinois?

Depending upon the chosen entity for your startup, you demand to sympathize the almanac filing requirements in addition to any state revenue enhancement owed. For case, for registering a corporation, you must pay a $150 filing fee. If you register as a express liability partnership, each partner must pay $100, with a minimum fee of $200. You can cheque the Illinois Section of Business Services for more data on filing fees . Additionally, yous are responsible for paying an annual franchise revenue enhancement (a minimum of $25), along with your annual reporting fee of $75.

When registering your startup with the Illinois Department of Revenue, you typically will non have an additional filing fee unless y'all are engaged in sure businesses , such as providing dry out cleaning services or selling tobacco products.

How to Register a Business in Illinois That Started in Some other Land

If y'all started your business organisation in some other country, and y'all'd like to annals it in Illinois, your startup is considered a "foreign corporation." A strange corporation "is a corporation organized under the laws of a country or country other than Illinois." Further, according to the Illinois Secretary of State's office , "[w]hen a foreign corporation transacts business in Illinois, it must qualify to do business by procuring an Authority to Transact Business in Illinois from the Secretary of State's Department of Concern Services."

Therefore, offset, you must file an Awarding for Authority (Form BCA thirteen.15) , in duplicate, with the Department of Business Services. Along with that application, you should also submit recently certified copies of your Articles of Incorporation (or other applicable germination documents) with any amendments. Finally, you should submit payment for all appropriate license and filing fees, franchise taxes, and any penalties or interest to the land for which you may exist liable.

If you begin operating in Illinois earlier filing your Awarding for Dominance, the land volition fine you $200 plus $5 per month or ten percent of fees and taxes , whichever is greater. One time the state approves your application, it volition issue yous an Say-so to Transact Business in Illinois certificate. After you lot receive your certificate, y'all must pay any applicable Illinois franchise taxes plus file an annual report, with a $75 filing fee each year.

Benefits of Registering a Business organization in Illinois

Registering your startup in Illinois offers the following benefits:

Illinois is dwelling to the third largest metropolitan city in the U.South. -- Chicago -- providing ample business opportunities.
Illinois is also a favorable environment for businesses, where new companies can benefit from grants, loans, and revenue enhancement incentives from the Illinois Department of Commerce and Economical Opportunity (DCEO) .
The per capita income is six pct higher than the national average.
Illinois also has like shooting fish in a barrel access to transportation, including air, runway, and shipping.

Limitations of Registering a Business in Illinois

Hither are some limitations of registering your startup in Illinois:

The Country of Illinois has had some fiscal trouble, facing a high deficit of $3 billion , causing additional concern for small businesses equally state services take been cut or reduced.
Illinois has higher corporate income revenue enhancement rates than other states.
Based on contempo figures, in 2018, the Illinois economy grew slower than the national average.

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Learn more about state registration for your business organization

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We can aid!

At AbstractOps , we help early-stage founders streamline and automate regulatory and legal ops, Hr, and finance so yous can focus on what matters near—your business concern.

If yous're looking for help registering your Illinois startup, we can get your documentation ready, overall shepherding this procedure to ensure it's done right, get in touch with us.

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