What type of entity is right for your Illinois Startup?
Choosing the right company structure for your new business
Ready to own your own Illinois startup? ClickAndInc.com makes forming your new business
in Illinois fast, hassle-free, and affordable. Our incorporation services cost a
fraction of what you’d pay a corporate attorney for the same filings. The first
step in the process is to select your business type. Read on—we’ve put together
information on several different entity types for you so that you can make an informed
Illinois C Corporation
To incorporate in Illinois, you’ll start by filing
Articles of Incorporation. This document will list key information about
your business—your corporate name, the contact person for the corporation, your
location in Illinois—and will be a matter of public record, on file with the Secretary
of State’s office and searchable in their office’s database.
A C corporation is the default type of corporation. Many people enjoy the flexibility
of a C corporation, such as the ability to issue multiple classes of shares, and
the ability to own and be owned by other entities or non-US citizens. C corporations
can also have unlimited shareholders. Corporate income will be reported by the corporation,
and will be separate from the owners’ individual income taxes.
Learn more about forming and maintaining an
Illinois C Corporation.
Illinois S Corporation
An S corporation is a corporation that files Articles of Incorporation with the
state, just as in a C corporation, and then files paperwork with the IRS to gain
the S status.
While an S corporation has a few more limitations than a C corporation—no more than
100 shareholders, owners must be US citizens, only one class of stock—the “S” status
means that the owners pay corporate income tax themselves, thus avoiding what is
known as the “double-taxation” of a C corporation.
If you’re not sure if this is the type of entity for you, take a look at further
information about forming an
Illinois S Corporation.
LLCs (or Limited Liability Companies), like S corporations, are pass-through entities
as far as tax purposes, which means that owners claim corporate gains or losses
on their individual tax returns. Like a C corporation, they can have unlimited members
and can be owned by US citizens, non-citizens, and other business entities.
For further information, please take a look at our section on forming an
Illinois Foreign Corporation
If you’ve formed a corporation somewhere other than Illinois (your home state is
called your domestic state) and you plan to do business in Illinois, you can form
a foreign corporation. A foreign corporation is formed in much the same way—by filling
out formation documents and submitting them to the Secretary of State of Illinois.
A Certificate of Good Standing or Existence from your domestic state is required
to be attached to these formation documents when you submit them for filing.
When you set up your
Illinois Foreign Corporation with ClickAndInc.com, we will take care of
obtaining your Certificate of Good Standing for you.
In Illinois, the jurisdiction involved with registering your business depends on
your structure. If you are an individual or an unincorporated partnership, your
DBA—called an Assumed Name in Illinois—is filed with the County Clerk of the county
in which your business is located. You will need a physical address in this business
in order to file. Once you’ve done so, you are required to publish notice of your
filing in a newspaper of general circulation in your county. When you work with
ClickAndInc.com, you have the option to do this yourself, or to have us take care
of publication for you.
If you have an existing corporation, LLC, or other incorporated entity, your Assumed
Name is filed at the state level, affecting your corporate records with the Secretary
Take a look at our Illinois
DBA page for more information.
Illinois Nonprofit Corporation
When you form a Nonprofit Corporation, you do so at the state level just as you
would file For-Profit Articles of Incorporation at the state level. Once you’ve
registered as a Nonprofit Corporation and have legal status, you can apply for your
501c3 status (or other status) with the IRS. It’s important that the IRS-required
501c3 language is included in the state Articles—the state doesn’t require the language
upon filing, but the IRS will need it later. When you form a 501c3 Nonprofit Corporation
through Click and Inc, we make sure the requisite 501c3 language is present from
the very beginning.
Take a look at our
Illinois Nonprofit Corporation page for more information.
Illinois Startup Quicklinks