What makes Illinois an exciting place to start your business? According to Economist Fred Giertz, the economic health of Illinois is showing an upward trajectory. The economy has been driven by several industries including some of the biggest names like McDonald’s, Boeing, United Airlines, and Motorola. The total gross state product was $792 billion in 2016 and incorporation in Illinois showed an increase in industries like higher education, financial trading, medicine, and logistics. The question is: are you ready to start your business in this state?
Why Choose Illinois for Incorporation?
There are many reasons why the number of small businesses being formed in Illinois has increased over the years. The state and federal agencies provide assistance for business entities in the form of grants and a variety of lending programs. Business incorporation in Illinois can enable your business to benefit from the various incentives and tax assistance programs as well.
Now let’s take a look at some of the salient benefits that are responsible for fuelling growth of small businesses:
- Illinois Business Enterprise Zone Program: The Illinois Enterprise Zone Program has been designed essentially for stimulating economic growth especially in the economically depressed areas within the state. If you set up company in Illinois Enterprise Zones like Bedford Park or Clark County then you will be able to benefit from state as well as local tax incentives. Apart from tax incentives, business entities will be exempted from retailer’s occupation tax that is normally paid on building materials. You can check the Illinois enterprise zone map here.
- Business Grants and Loans: The Illinois Department of Commerce and Economic Opportunity (DCEO) makes different types of loans and grants available to small and medium sized businesses. You can qualify for these incentive programs post incorporation in Illinois and some of the popular programs include:
– Illinois Capital Access Program: This is a loan program specifically targeted at those new or small business entities that are unable to qualify for a conventional loan.
– Participation Loan Program: This is a loan program wherein the Illinois Department of Commerce and Economic Opportunity (DCEO) participates with lenders to ensure loans amounting to a minimum of $10,000 and a maximum of $750,000 is made available to small businesses post incorporation in Illinois.
How do you incorporate in Illinois?
What is the process of company incorporation in Illinois? What type of documentation is required? These are some of the common questions that you will be confronted with if you planning to set up a new business in the state. The following steps will enable understanding of the entire process:
What type of business do you want to set up in Illinois? It is important to identify the type of business so that you can set up company in Illinois with ease. You can choose from Sole Proprietorships, Limited and General Partnerships, Limited Liability Companies (LLC), Limited Liability Partnerships (LLP), and Corporation including S-Corporations and C-Corporations. The type of business entity you want to form can be domestic or foreign entity. The forms and fee will be different for each type of entity. Know more
Business Entity Name
One of the most important steps towards incorporation in Illinois is naming your business entity. You have to start by identifying, searching, reserving, and then registering the business entity name. There are 3 steps towards business name formation and they are:
- Naming Requirements: A corporate name pursuant to (805 ILCS 5/) Business Corporation Act of 1983 should contain the words “corporation”, “incorporated” or abbreviation like “corp.”, and “inc.” The names should be distinguishable from existing names.
- Business name search: You need to search for a business name that is not in use currently. You can conduct name search here.
- Name Reservation: Once you have identified business entity name, it is advisable to reserve the name by filing an application with the Secretary of State pursuant to 805 ILCS 5/4.10 Business Corporation Act of 1983. Name reservations are valid for 90 days.
Choose a Registered Agent
A domestic business entity as well as foreign entity authorized to transact business in the state of Illinois will have to maintain a registered agent pursuant to (805 ILCS 5/) Business Corporation Act of 1983. We are one of the respected registered agents in Illinois and will be responsible towards initiating incorporation in Illinois through processing of your “Articles of Incorporation” for domestic corporations and “Application for Authority” for foreign corporations.
Articles of Incorporation and Application for Authority
You will be required to submit “Articles of Incorporation” if your business is a domestic corporation and an ” Application for Authority” if it is a foreign business entity. In order to streamline the process of incorporation in Illinois, we can file documents on your behalf through the online process or through expedited process.
Date Stamped Copies
As a part of the process of company incorporation in Illinois, we will ensure, you receive date-stamped and filed copies that verifies the state has filed as well as formed your corporation.
Costs and Fees associated with Illinois Incorporation
What would it cost to set up company in Illinois? Check Fees here!