One of the initial actions you’ll need to take if you want to launch a business in Illinois is to register your corporation with the government. Because of its possible tax advantages as well as its protection from responsibility, a C corporation (C Corp) is a popular choice among business owners. The following information will help you while registering a C Corp in Illinois.
Step 1: Select a Name You must decide on a name for your company before you can register your C Corp. Your company name must be original and not being used by another Illinois corporation. On the website of the Illinois Secretary of State, you can look up names that are available. Once you’ve decided on a name, you must submit a Name Reservation Application to the state in order to reserve it.
File Articles of Incorporation in Step 2 Articles of incorporation must then be submitted to the Illinois Secretary of State. This document contains details regarding your company, including its name, registration agent, and the total amount of stock shares your organization will issue. The cost to file the articles of incorporation is $150, and you can do it online or by mail.
Step 3: Obtain an EIN
The Internal Revenue Service (IRS) will issue your company with a special nine-digit number known as an Employer Identification Number (EIN). To open a business bank account, recruit staff, and file taxes, you’ll need an EIN. On the IRS website, you can request an EIN for nothing.
Register for State Taxes in Step Four In Illinois, your C Corp might be charged state taxes. You must get a Business Tax Registration Number (BTR) from the Illinois Department of Revenue in order to register for state taxes. There is no cost associated with obtaining a BTR, and you can register online or by mail.
Illinois Corporation Formation Fees
Depending on the type of business you select and the services you require, the price to form a corporation in Illinois can change. The filing fee for articles of incorporation for a C Corp in Illinois is $150. Additionally, you might have to pay for other services like registered agent services or legal fees. Difference:
involving C Corp and Inc There are some distinctions between the corporate forms of C Corp and Inc. A C Corp is a particular kind of corporation that pays taxes apart from its shareholders. This implies that the owners also pay taxes on any income they earn from the corporation, in addition to the corporation paying taxes on its profits. A corporation known as an Inc. or S Corporation permits profits and losses to be passed through to the owner’s individual income tax return. Illinois business license for online sales To sell online in Illinois, you might need to get a business license. Depending on the type of business you have and where you are located, there are different criteria. If you’re unsure whether you need a business license, you can inquire with your neighborhood city or county authority. In contrast to Inc., LLC Corporations and Limited Liability Companies are two business entity types that provide liability protection. There are certain distinctions to take into account, though. A corporation can issue stocks and has more structure and formality, whereas an LLC offers pass-through taxation and is more adaptable. To choose the right entity type for your company’s purposes, it’s crucial to speak with a legal or financial expert.
In conclusion, picking a distinctive name, submitting Articles of Incorporation, acquiring an EIN, and registering for state taxes are required in order to form a C Corp in Illinois. Depending on the services you require, forming a corporation in Illinois can cost different amounts. A C Corp and an Inc are different from one another, and both provide liability protection. To make wise business decisions, it’s crucial to conduct research and speak with experts.