How to form a corporation in Illinois
Starting a corporation in Illinois is a structured process, but it’s more straightforward than many business owners expect. Below is a high-level checklist outlining the key steps involved when you start a corporation in Illinois.
1. Choose your corporation type
There are several corporation structures available in Illinois. The most common options are C corporations and S corporations, though some businesses may qualify as nonprofit or professional corporations depending on their purpose and industry requirements.
2. Decide on a company name
Once you’ve selected your corporation type, you’ll need to choose a compliant business name. Illinois requires that corporate names be distinguishable from those already registered. Terms such as “Corporation,” “Incorporated,” or appropriate abbreviations must be included. Most business owners run an Illinois corporation search before filing to confirm availability and avoid delays.
3. Get a registered agent
All Illinois corporations are required to appoint a registered agent with a physical street address in the state. The registered agent is responsible for receiving legal documents, government notices, and service of process on behalf of the corporation. An individual resident or an authorized third-party service can fulfill this role.
4. Choose an incorporator
Illinois Articles of Incorporation must identify at least one incorporator. The incorporator signs and submits the filing to the Illinois Secretary of State. This role can be filled by an individual, an attorney, or a professional service provider authorized to act on your behalf.
5. Issue shares
Illinois corporations must authorize shares as part of the formation process. You may choose how many shares to authorize and whether the corporation will have more than one class of stock. If multiple classes are created, each class’s rights and privileges must be clearly defined. Because share structure can impact taxation, ownership, and future fundraising, many businesses consult legal or tax professionals at this stage.
6. File the Articles of Incorporation
After gathering the required information, the Articles of Incorporation are filed with the Illinois Secretary of State. Filing can be completed by mail or online, depending on preference. Once the filing is accepted and processed, your Illinois corporation is officially formed. Additional organizational steps typically follow, such as adopting bylaws and issuing stock certificates.
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