Selecting the appropriate legal form for your business is one of the most crucial decisions you will make if you plan to launch a business in Illinois. The S company, sometimes known as a S Corp, is one of the most well-liked options since it provides the advantages of a corporation while preventing double taxation. But how much does it cost in Illinois to set up a S Corp?
The filing fees, legal fees, and other charges all have a role in how much it costs to incorporate a S Corp in Illinois. In Illinois, there is a $150 filing cost for forming a S Corp. However, there can be extra costs if you need to file more documents or expedite the processing of your application.
You might also be required to pay legal fees to an attorney or other expert to assist you with the incorporation procedure in addition to the filing fee. Depending on your business’s intricacy and the services you need, these costs may be very different.
The Internal Revenue Service (IRS) assigns an Employer Identification Number (EIN), a special number, to identify your company for tax purposes. Applying for an EIN number in Illinois is free. Using Form SS-4, you can apply for an EIN number either online or by mail.
A common business form that combines the tax advantages of a partnership with the liability protection of a corporation is a limited liability company (LLC). The revenue and losses of an LLC are passed through to the owners and recorded on their personal tax returns since LLCs are taxed as pass-through businesses in Illinois.
LLCs must submit an annual report to the Secretary of State’s office in Illinois. The annual report filing fee is $75. Your LLC’s status may be revoked if the yearly report is not submitted. Every year, on the first day of the month the LLC was created, the annual report is due. Should I Form a Corporation in Illinois?
Several variables, including your business objectives, the size of your company, and the state’s tax and regulatory requirements, must be taken into consideration when deciding whether to incorporate in Illinois. Illinois has a broad economy, a talented workforce, and is business-friendly. To find out if incorporating in Illinois is the best option for your company, it’s crucial to speak with an expert.
In conclusion, it costs $150 to incorporate a S Corp in Illinois, and you could also have to pay legal fees. In Illinois, obtaining an EIN number is free. LLCs must submit an annual report along with a $75 filing fee and are taxed as pass-through entities. Last but not least, incorporating in Illinois depends on a number of variables and need professional advice.