Illinois C Corp Formation

Illinois C Corporation Formation

Get Free Attorney Proposals
Steven S.

Steven Stark

274 reviews
For over 30 years, Steven Stark has offered counsel to non-profit organizations and private companies. He has a passion for helping small businesses in particular since he himself started several businesses of his own in New York and Florida. He understands the importance of small businesses having a reliable attorney to advise them about legal matters from their inception.
|
Get Proposal View Profile
Richard G.

Richard Gora

156 reviews
Looking for an attorney with experience? Richard Gora is the exact attorney you want. Having defended over 100 cases both in state and federal courts and working with clients from around the globe, Richard has an array of different experiences. His services are wide-ranging and include business litigation, securities litigations, employment litigation, and business counsel. Prior to founding Gora LLC, he worked for Finn, Dixon & Herling LLP for eight years.
|
Get Proposal View Profile
Joshua G.

Joshua Garber

196 reviews
Representing notable clients like Tesla and the City of Los Angeles, Josh Garber excels at helping clients with employment and labor laws. Many of his past clients have had great success using Josh for employment agreements and Division of Labor Standards Enforcement (DLSE) hearings. With his practical advice, he has even helped clients avoid going to court.
|
Get Proposal View Profile
Bryan D. P.

Bryan D. Pitts

Bryan Pitts has a little over 3 years of experience practicing business law including taxes, business formation, non-profit formation, and commercial contracts. Prior to working as an attorney, Mr. Pitts worked as a legal extern for the IRS and researched current and past tax issues and reviewed and submitted them to the Appeals Division. His experience guides him and he can help you navigate all of your business tax-related concerns.
|
Get Proposal View Profile
Cathy C.

Cathy Cupp

Cathy Cupp is a business law guru with over 34 years of experience in the field. She has served as general counsel to small and medium sized companies. Some of her notable clients include Aha!, Enesco, Travelport, and Glasswall Solutions. Attorney Cupp specializes in corporate acquisitions, licensing, executive employment, and IP matters. In addition to her current experience, Attorney Cupp served 13 years at Galileo International where she served client in 110 different countries.
|
Get Proposal View Profile
T. Phillip B.

T. Phillip Boggess

T. Phillip Boggess is a business lawyer with more than two decades of experience. He is licensed to practice law in Illinois. Phillip holds a J.D. in law, which he obtained from the Drake University Law School. Phillip specializes in real estate law, and is also able to assist corporate clients with drafting, reviewing and negotiating commercial contracts. In November 1996, Phillip founded his own law firm, where he now acts as the principal attorney.
|
Get Proposal View Profile
Salina C.

Salina Canoy

Salina Canoy practice law in Illinois. She mainly focuses on business law and has experience in numerous practice areas, including venture capital, mergers, debt collection and corporate legal matters. She graduated with a Juris Doctor in law from Harvard Law School in 2007. Salina is a member of McClain & Canoy. She has also worked as an attorney at Axiom and was an associate at McGuireWoods between 2010 and 2013.
|
Get Proposal View Profile
Mark S.

Mark Schiff

Mark Schiff has 38 years of experience and helps both businesses and entrepreneurs throughout their business formation and journey. Attorney Schiff specializes in business litigation and he is heavily involved in the manufacturing and technology niches. Mr. Schiff is here to help you and is also an approved mediator for the Law and Chancery divisions within the Circuit Court of Cook County.
|
Get Proposal View Profile
Lana N.

Lana Nassar

2 reviews
Lana has counseled clients in the technology space, start-ups, and trademark & copyright matters. In addition to transactional work, Lana practices in a variety of civi... read more
|
Get Proposal View Profile
Jeffrey  S.

Jeffrey Salas

One of the founding partners at Salas Wang, LLC, Jeffrey Salas concentrates on arbitration and litigation. Earlier in his career, he was involved in some of the most important cases of corporate governance law. Mr. Salas has represented clients in a variety of cases related to securities, financial fraud, breach of fiduciary duty, and breach of contract actions in state and federal courts.
|
Get Proposal View Profile

Why use UpCounsel to form your C Corporation in Illinois?

Confused by complicated questionnaires and government forms? Want to get your questions answered by a real attorney? UpCounsel provides personalized legal services with experienced attorneys to help form your Illinois C Corp the right way.
14 years

Average experience

You always get experienced professionals and high caliber work.

3x

Faster

Your work gets done quickly because professionals are always available.

60%

More cost effective

We use technology to cut traditional overhead and save you thousands.

UpCounsel has been talked about in:

Money-Back Guarantee on All of Your Legal Work

Applies to all transactions with verified attorneys on UpCounsel

In the event that you are unsatisfied with the work of an attorney you hired on UpCounsel, just let us know. We’ll take care of it and refund your money up to $5,000 so you can hire another attorney to help you.

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:

  1. The C-Corp's name and address.
  2. The C-Corp's registered agent's name and address.
  3. The purpose for which the C Corporation is organized.
  4. 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:

  1. Must be a domestic corporation.
  2. Have only allowable shareholders including individual, certain trusts, and estates; and may not include partnerships, corporations or non-resident shareholders.
  3. Have only one class of stock
  4. Have no more than 100 shareholders
  5. 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 Business Off Right with an Affordable C Corporation Attorney in Illinois

Start Your Company Off Right with Affordable C Corporation Attorneys in Illinois

Connect with Top Illinois C Corporation Formation Attorneys & Lawyers

What Our Customers Have to Say

"UpCounsel gives me access to big-firm lawyers minus the big-firm price tag. I work with several attorneys on the platform and there are never surprises...I always receive quality legal work at competitive rates that larger firms simply cannot match."

Scott Woods
SVP & General Counsel

"Every startup needs to know about UpCounsel. We found great attorneys at great prices and were able to focus our resources on improving our business instead of paying legal bills."

Sean Conway
Co-founder & CEO

"Before UpCounsel it was hard for us to find the right lawyer with the right expertise for our business. UpCounsel solves those problems by being more affordable and helping us find the right lawyer in no time."

Tristan Pollock
Co-founder & COO

Find the best lawyer for your legal needs

Find a lawyer