First, pick a name for your company. Your company name must be distinct and cannot conflict with another name that is already registered with the Illinois Secretary of State. By conducting a search on the Illinois Secretary of State’s website, you can see if your proposed business name is available. Once you’ve decided on a name, you can 90 days online to reserve it.
Select a business structure next. In Illinois, sole proprietorship, partnership, LLC, and corporation are the most popular company structures. Choose the structure that is best for your business because each one has advantages and cons of its own.
You can submit your papers to the Illinois Secretary of State once you’ve decided on a name and organizational structure for your business. If you’re founding an LLC or a corporation, you must complete and submit the Articles of Organization or Articles of Incorporation, respectively. Your papers can be submitted in person, via mail, or online.
Depending on your company structure, there are different filing fees at the Illinois Secretary of State. A corporation’s articles of incorporation and an LLC’s articles of organization both have a $150 filing fee. There is an extra $5 cost if you file via mail.
What Constitutes Conducting Business in Illinois? You must register your company with the Illinois Secretary of State if you conduct business there. However, what is considered “doing business” in Illinois? According to the Illinois Secretary of State, if you have a physical presence in the state, such as an office, store, or warehouse, you are deemed to be conducting business there. You have workers who are employed by the state. • You are renting out property in the state; you are selling goods or providing services there. • You are hosting conferences or engaging in other professional activities in the state.
In Illinois, creating an LLC costs $150. When you submit your articles of organization to the Illinois secretary of state, you must pay this charge. A $5 filing fee is added if you file by mail. A $75 annual report fee is also required in order to keep your LLC in good standing.
Depending on your company’s needs, you may choose to choose between a sole proprietorship and an LLC. Although a sole proprietorship is a straightforward and affordable business structure, it offers no liability protection. The liability protection provided by an LLC, on the other hand, can be taxed either as a partnership or a corporation. The choice between an LLC and a sole proprietorship ultimately depends on the objectives and ambitions of your company.
Depending on the county where the firm is located, a sole proprietorship in Illinois may cost more or less to register. The cost is typically between $25 and $50 in most counties. The cost, however, might be as high as $150 in some areas. Other costs connected with obtaining licenses and permissions for your firm are also possible.
Yes, you must seek a business license from the state of Illinois if you are operating a business there. Online sales of goods and services are included. You might also need to apply for extra municipal licenses and permits, depending on the nature of your firm. It is advised that you look into the particular criteria in Illinois for your type of company and sector.