Illinois · Corporation
How to Start a Corporation in Illinois
In Illinois, the number of shares you issue sets part of your startup bill.
See the stepsShort answer
File articles of incorporation with the Illinois Secretary of State for $150. At checkout that is $154 for Illinois plus $123.75 for our formation, $277.75 before card processing. Illinois also charges an initial franchise tax of 15/100 of 1% of your paid-in capital, with a $25 minimum, when you report your first shares. The annual report then costs $75 each year.
Last checked .How do I incorporate in Illinois, step by step?
Illinois adds an initial franchise tax of 15/100 of 1% of paid-in capital, with a $25 minimum, due when you file your first report of issuance of shares. A founder who puts in a small amount pays close to the minimum. The annual report is due within the 60 days before the first day of your anniversary month.
Choose and check the name
An Illinois corporate name must contain "corporation," "company," "incorporated," or "limited," or an abbreviation of one. Check the Secretary of State's corporation name search before you file. See the Illinois name search guide.
Name a registered agent
Every corporation needs one in the state (the rule). Ours is $74.25 a year.
File articles of incorporation
File the Articles of Incorporation with Illinois. The fee at our checkout is $154. Details are below.
Adopt bylaws
Bylaws are the board's rules: how directors are elected, how meetings run and how officers are chosen. Every corporation we form includes them.
Name directors, officers and issue shares
An Illinois board of directors must have one or more members. 4 Hold an organizational meeting, record it in minutes, and issue stock to the owners.
Get an EIN
The EIN is the corporation's federal tax ID. The IRS issues it free at irs.gov.
Register for state taxes
Before you pay wages, open a payroll withholding account with the state’s tax department, and a sales tax account if you sell taxable goods or services.
File the annual report
Put the first deadline on your calendar before you file anything else. See the Illinois annual report page and the filings below.
How much does it cost to incorporate in Illinois?
| Item | Cost | When |
|---|---|---|
| State fees (what our checkout charges) | $154 | At filing |
| Our formation, bylaws included | $123.75 | At filing |
| Total for the filing | $277.75 | Before card processing |
| With our registered agent for a year (Formation + Registered Agent) | $332.20 | At filing |
| With the Day-One Bundle | $376 | At filing |
| Annual report (each year) | $75 5 | each year within the 60 days before the first day of your anniversary month |
| Illinois initial franchise tax (one time, with the filing) | $25 minimum 6 | At filing |
| First-year total: filing, our formation and the one-time tax minimum | $302.75 | Before card processing |
| Registered agent after the first year | $74.25 a year | Optional |
Card processing is added at checkout and shown before you pay. State fees: $150 articles; the other $4 of the $154 is not itemized on the state's fee schedule.
Illinois at a glance
| Question | Illinois |
|---|---|
| Formation filing and state fee | Articles of Incorporation, $150 1 |
| Name rule | Must contain, separate from any other word, corporation, company, incorporated or limited, or an abbreviation of one 2 |
| Registered agent | Registered office in Illinois and a registered agent: an Illinois-resident individual at that office, or an authorized entity 3 |
| Directors and officers | At least 1 director; officers: as set in the bylaws; any two or more offices may be held by the same person if the bylaws allow 4 |
| Annual report | Annual report, $75, due each year within the 60 days before the first day of your anniversary month 5 |
| Franchise or minimum tax | Illinois initial franchise tax: 15/100 of 1% of paid-in capital represented in Illinois, minimum $25, due once, at incorporation 6 |
| Corporate income tax | 7% income tax plus 2.5% replacement tax 7 |
Do I need a registered agent in Illinois?
Every Illinois corporation must keep a registered office and a registered agent in the state, and an individual agent must be an Illinois resident whose business office is the registered office. 3 You can be your own agent if you have a street address in the state and are there in business hours, but the address goes on the public record. Ours, through our partner Registered Agents Inc, is $74.25 a year, or $178.20 with the formation. Illinois registered agent rules.
What goes in the Illinois articles of incorporation?
The articles state the corporation's name, its authorized shares, and the initial registered office and agent. An individual agent must be an Illinois resident whose business office is the registered office.
Which annual reports and franchise taxes will a Illinois corporation owe?
Pay the one-time initial franchise tax, then file the annual report every year. Elect your officers under your bylaws; one board member is enough.
How do I start an S corp in Illinois?
A corporation is a C corporation unless it elects otherwise. An S corp is a tax election, not another kind of entity. The order is plain: form the corporation, get the EIN, then file IRS Form 2553 within 2 months and 15 days after start of the tax year the election takes effect (or any time in the prior tax year) 9. Illinois treats S corporations as pass-through for income tax; the shareholders pay Illinois income tax, not the company. 8
We file Form 2553 for $165. Run your own numbers in the calculator or read Illinois: S corp or C corp.
Should I form a corporation or an LLC in Illinois?
Shares, a board and officers. The usual choice when you plan to raise money from investors or issue stock options.
Fewer formalities and flexible ownership. Often the simpler choice for one owner or a small team.
Compare the two: How to start an LLC in Illinois.
Raising venture money? Investors usually ask for a Delaware C corporation, which you then register in Illinois as a foreign corporation. See how to start a corporation in Delaware.
What do I do after filing in Illinois?
- Adopt the bylaws and hold the first board meeting; write minutes.
- Issue stock to the owners and keep a stock ledger.
- Get the EIN, open a business bank account and keep money separate.
Form your Illinois corporation
We file it for $123.75 plus the state fee ($154), with bylaws included. Add the registered agent for $178.20 in all, or take the Day-One Bundle at $222.
Common questions
How much does it cost to incorporate in Illinois?
The filing fee is $150, plus the initial franchise tax and the $75 annual report.
What is the Illinois initial franchise tax?
A tax for exercising your franchise in Illinois: 15/100 of 1% of paid-in capital, with a $25 minimum.
When is the Illinois corporation annual report due?
Within the 60 days before the first day of your anniversary month, the month your articles were filed.
How many directors does an Illinois corporation need?
One or more, with the number fixed by your bylaws.
Sources 9 links, checked Nov 7, 2026
- Illinois charges $150 to file articles of incorporation. ilga.gov, checked Nov 7, 2026
- An Illinois corporate name must contain the word "corporation," "company," "incorporated," or "limited," or an abbreviation of one of them. ilga.gov, checked Nov 7, 2026
- Every Illinois corporation must keep a registered office and a registered agent in the state, and an individual agent must be an Illinois resident whose business office is the registered office. ilga.gov, checked Nov 7, 2026
- An Illinois board of directors must have one or more members. ilga.gov, checked Nov 7, 2026
- Illinois charges $75 to file a domestic corporation's annual report. ilga.gov, checked Nov 7, 2026
- Illinois charges a one-time initial franchise tax of 15/100 of 1% of your paid-in capital, with a $25 minimum. ilga.gov, checked Nov 7, 2026
- An Illinois C corporation pays 7% income tax plus 2.5% replacement tax. tax.illinois.gov, checked Nov 6, 2026
- Illinois treats S corporations as pass-through for income tax; the shareholders pay Illinois income tax, not the company. tax.illinois.gov, checked Nov 6, 2026
- IRS: Form 2553 instructions irs.gov, checked Nov 6, 2026
Last verified Nov 7, 2026.
This page explains the rules; it is not legal or tax advice.