Illinois C Corporation Formation Attorneys & Lawyers
How it Works
Steven Stark
Scott Stram
Jake Siciliano
Richard Gora
Michael Wieser
Brig Ricks
Grant Maynard
Chrystan Carlton
Timothy Duffy
Walid Tamari
Illinois C Corporation Formation Lawyers
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Why use UpCounsel to form an C Corporation in Illinois
Starting an C Corporation in Illinois with a business startup attorney on UpCounsel is easy, informative, and cost-effective. In just three simple steps, our C Corporation attorneys will help you protect your business and personal assets, and help you organize your business for state and federal compliance for an C Corporation.
When forming an C Corporation in Illinois with UpCounsel, the attorney you choose to help you will conduct a business name search for your Illinois C Corporation and assist you in preparing your C Corporation Operating Agreement, along with providing other legal services based on your needs. Once your Articles of Incorporation have been prepared and successfully filed with the Illinois Secretary of State Department of Business Services, your Illinois C Corporation has been formed and begins its existence as a corporate entity.
However, a corporation does not register as an C Corporation with the Secretary of State. It registers as a corporation with the state and then may file for C Corporation status with the IRS. C Corporation status is a taxation category which provides income tax advantages to small businesses.
Choosing a Company Name for Your C Corporation
One of the first steps in the process of forming your C Corporation is to choose your business name.
The business name that you choose must contain the word "Corporation", "Company", "Incorporated", "Limited", or an abbreviation of one of those words. It must be distinguishable (not the same as or deceptively similar to) the name of an S Corp or foreign C Corporation reserved or registered.
Your C Corporation name may contain the name of one or more members.
By using UpCounsel, you can choose several business names in order of preference. Your attorney of choice can then conduct a name check for your Illinois S Corp before filing to see which names are available. Once you have chosen an available name, your chosen C Corporation attorney can help you properly register your name with the State of Illinois.
Requirements for Forming a Illinois C Corporation
Articles of Incorporation: When forming an C Corporation in Illinois, the Articles of Incorporation must be filed with the Illinois Secretary of State Department of Business Services. Illinois state law requires that certain information be included in your Articles of Incorporation when forming your Illinois C Corporation.
This information must include:
- The C-Corp's name and address.
- The C-Corp's registered agent's name and address.
- The purpose for which the C Corporation is organized.
- The number of shares the corporation is authorized to issue and the consideration (money or property) the corporation will receive for the shares.
Additionally, a Illinois C Corporation formation generally requires inclusion and/or consideration of the following:
C Corporation Qualification Requirements: For a corporation to qualify as a C Corporation for tax purposes, it must meet the following requirements:
- Must be a domestic corporation.
- Have only allowable shareholders including individual, certain trusts, and estates; and may not include partnerships, corporations or non-resident shareholders.
- Have only one class of stock
- Have no more than 100 shareholders
- Not be an ineligible corporation (i.e. certain financial institutions, insurance companies, and domestic international sales corporations).
Additionally, a Illinois C Corporation formation generally requires inclusion and/or consideration of the following:
C Corporation Operating Agreement: Although the C Corporation Operating Agreement is not required with the Articles of Incorporation, it is a good idea for every C Corporation with more than one member to have one. The Articles of Incorporation may contain restrictions or prohibitions on the power of the members to adopt, amend, or repeal an operating agreement.
Membership: A C Corporation must have one or more members.
Eligibility Requirements: A natural person or an entity.
Procedure for Membership: The member may acquire an interest in the C Corporation directly from the C Corporation at the time of formation and, after formation, at the time provided in and upon compliance with the Articles of Incorporation or the operating agreement or, if not provided, only upon the vote of a majority in interest of the C Corporation members, excluding the vote of the person acquiring the membership interest, and only when the person becomes a party to the C-Corp's operating agreement.
Business Licenses: Business licenses and/or permits are required for most C-Corp's offering specific professional services. Contact the Illinois State Corporations Commission for specific licenses.
Resident Agent needed for a Illinois C Corporation
Remember every Illinois C Corporation must have a registered agent in Illinois, which is the person or office designated to receive official state correspondence and notice if the company is "served" with a lawsuit. The statutory agent may be an Illinois resident or business entity authorized to do business in Illinois. If the registered agent is a corporation, its articles must authorize it to act as an agent. The registered agent must have a physical Illinois street address.
Illinois Secretary of State
Once you create an C Corporation in Illinois, the Illinois Secretary of State will require that certain recurring responsibilities and duties be fulfilled. The most important of these are explained below.
For further information, contact the Illinois Secretary of State.
Recurring Responsibilities and Duties for Illinois C Corporations
Annual Report: Each C Corporation shall provide an annual report to the Illinois Secretary of State Department of Business Services regarding its financial condition to each of its members. The report must be filed by the C-Corp's anniversary date and the filing fee is $75.
Incorporator's Statement: Each C Corporation must keep in its records a signed "Incorporator's Statement" showing the names and addresses of the initial directors who will serve on the board until the first annual meeting of shareholders.
Filing Fees for a Illinois C Corporation
The filing fee is $150 plus an initial franchise tax payment assessed at rate of $1.50 per $1,000 of paid-in capital represented in Illinois. The minimum initial franchise tax is $25. Also, the general fees for filing and reserving a C-Corp's name is $300. These fees can change so it would be best to check with the Illinois Secretary of State Department of Business Services on what the latest fees are. You may pay these fees in many different forms including cash, check, money orders, or debit and credit cards.
Taxes for a Illinois C Corporation
A Illinois C Corporation is a special type of corporation created through an IRS tax election. An eligible corporation can avoid double taxation (once to the corporation and again to the shareholders) by a corporation with a Subchapter S designation by the IRS. A corporation must file a Form 2553 to elect "S" status within two months and 15 days after the beginning of the tax year.
Owners of the C Corporation report business losses or profits on their personal tax returns, and therefore the business itself is not taxed. Each shareholder is responsible for paying taxes on their pro rata share of the S corporation's items of income, deductions, and credits (through a Schedule K-1 form).
Illinois state law follows federal law for income tax purposes. Therefore if a corporation is classified as an association taxable as a C Corporation for federal income tax purposes, so will it be taxable as a corporation for state tax purposes.
Federal Income Tax: An C Corporation does not pay federal income tax.
Illinois State Income Tax: Illinois does not impose an income tax on businesses. However, Illinois C Corporations are Subject to Illinois' replacement tax at a reduced rate.
Federal Tax Identification Number: Your corporation will need to obtain a federal tax identification number, which is also known as an Employment Identification Number (EIN). You do not need to get a new EIN after the corporation choose to become a C Corporation An EIN is similar to an individual's social security number. You will need an EIN for your C Corporation as long as there is one member, even if the C Corporation does not have employees. For certain tax filing requirements the attorney you choose on UpCounsel can help prepare your Federal Tax ID Application, if you have not done so already.
Start Your Company Off Right with Affordable C Corporation Attorneys in Illinois
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This is the most recent 20 reviews out of 125 reviews for Business Formation attorneys in Illinois
Review Franchise Agreement
"Alisha was very professional, responsive, and thorough -- she wasn't afraid to do a little extra and was upfront and honest about pricing. Will definitely work with her again!"
William E
.
Chicago,
IL,
14 days ago
Consult on Corporate Restructure
"Mario was fantastic, quick response time and clearly explained legally why it needs to be done this way. Top notch and I will be using him again in the future."
David M
.
Chicago,
IL,
about 1 month ago
Consult on Corporate Restructure
"I decided to work with Ryan after two short consultation calls where Ryan shared his wealth of knowledge with me. He has been extremely helpful and efficient in resolving my case without any significant delays. He made everything easier for me so I could focus on running my business. I highly recommend him to any business owners seeking legal services without wanting to break the bank with traditional law firms. Very glad I found him on UpCounsel."
Vy V
.
Chicago,
IL,
5 months ago
Form Corporation
"Jon was great to work with. He instantly understood my objectives and worked in an efficient, collaborative, professional, and effective manner while communicating clearly throughout the engagement."
Matt H
.
7 months ago
Draft Shareholder Agreement
"Sara has been a great attorney to work with. She was able to step in and bring a significantly delayed project to completion in a timely manner when I decided to replace my previous attorney. Extremely knowledgeable, thorough, and responsive. Highly recommend"
Alex O
.
Chicago,
IL,
8 months ago
Assist with Other Business Formation Matter
"Very knowledgeable and responded to questions quickly."
Ryan D
.
Winnetka,
IL,
11 months ago
Business Formation Consults
"Knowledgeable, and very responsive."
Richard F
.
Berwyn,
IL,
over 1 year ago
Draft Operating Agreement
"It was such a refreshing experience working with Sam. His communication is excellent and he helps explain complicated legal language in a way that is easy for non-legal folks to understand. I would highly recommend Sam."
Sean C
.
Schaumburg,
IL,
over 2 years ago
Consult on Business Licenses & Industry Regulations
"It was truly a great experience working with Chrystan Carlton. The entire process was thoroughly explained from pre-start to post-finish. Chrystan removed barriers of the unknown and provided me knowledge throughout the entire process as well. Expedient, efficient, open lines of communications and genuinely cares for her clients and has a passion for her work!! Working with Chrystan Carlton is highly recommended!!"
Amreh H
.
Calumet City,
IL,
over 2 years ago
Draft operating agreement for Wyoming LLC
"Consummate professional."
Laurens V
.
Chicago,
IL,
over 2 years ago
Draft Operating Agreement
"Seun was prompt and took care of all of my previous series-LLC operating agreement issues that were raised from an underwriting team regarding loan I was qualifying for. He coordinated with the bank's legal team to efficiently address the previous issues line by line and successfully completed documents on time."
Richard V
.
Chicago,
IL,
over 2 years ago
Assist with Other Business Formation Matter
"Amy was a pleasure to work with. I'd highly recommend her and plan to work with again her in the near future."
Chris L
.
Chicago,
IL,
over 2 years ago
Consult on Corporate Restructure
"This would have taken me days, and honestly cost me thousands of dollars of my time and energy. Great experience here."
Brian A
.
Niles,
IL,
almost 3 years ago
Other Business Formation Matter
"Stacy was able to quickly interpret my request, determine what was needed, communicate the plan of action and turn the request around in a very short time frame. Overall a very pleasant experience. Would recommend Stacy to friends and colleagues that need similar services without hesitation."
Tina H
.
Elk Grove Village,
IL,
almost 3 years ago
Form LLC
"Matt was knowledgeable and effective at helping secure my LLC and EIN. Having said that, he could have been more proactive in communicating updates and needs to focus on improving his customer service. On one occasion, until I pushed back, he had expected me to call the IRS Dept of Treasury because he didn’t want to call back and wait on the line again because they had detected an error related to a “Sr.” name designation the was omitted from the registration form."
Reggie S
.
Saint Charles,
IL,
about 3 years ago
Form LLC
"Engaged Michael for the drafting of an Operating Agreement for a real estate investing start-up. He was mindful, informative, and a pleasure to work with. Thanks Michael!"
Cesar L
.
Chicago,
IL,
about 3 years ago
Draft Advisory Agreement
"Wonderful experience working with Michael. I intend to use this law firm moving forward."
Dan C
.
Chicago,
IL,
about 3 years ago
Operating Agreement
"Mr. Gandhi is a terrific lawyer! Have work with him for a couple years now and every time he delivers professional services and has quick response time. Every time my company have any need for any issues regarding a lawyer I do not hesitate to reach out to him."
Carlos G
.
Zion,
IL,
over 3 years ago
Business Formation Consultation
"Jeramie was wonderful helping me create my LLC. He did take awhile to get back to me, but always answered all My questions and was a pleasure to work with."
Amanda D
.
Oak Forest,
IL,
over 3 years ago
Review Operating Agreement
"Great and prompt communication. Grant was very quick with his responses, which was greatly appreciated."
Nathan S
.
Oswego,
IL,
about 4 years ago