Illinois S Corp Formation

Illinois S Corporation Formation

Get Free Attorney Proposals
Steven S.

Steven Stark

259 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

153 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

188 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
Christopher M.

Christopher Matern

2 reviews
Christopher Matern is a well-rounded attorney who practices business law to include contract negotiations, commercial real estate, and even new business formation. Attorney Matern’s mission is to provide the best legal services to all clients throughout Chicago and Illinois. Mr. Matern has received multiple awards to include the Lincoln Park Chamber of Commerce Board of Directors-First Recipient of the Member of the Decade Award.
|
Get Proposal View Profile
Q. Anthony S.

Q. Anthony Siemer

With extensive experience working with both startups and mature companies, Q. Anthony Siemer practices in the areas of general business, corporate law, LLCs and partnerships, commercial real estate, estate planning, and probate. He has been part of the Leading Lawyers Network since 2004. Before embarking on his legal career, he served as a bank director for 41 years.
|
Get Proposal View Profile
Vlad C.

Vlad Chirica

Born in Bucharest, Romania, but now residing in Illinois, Vlad Chirica is an associate attorney. Previously working at Berton N. Ring, PC, Chirica argued pre-trial motions, attended daily court calls, and drafted motions and pleadings. He comes with much experience issuing subpoenas and leading depositions. Chirica has a wide breadth of work capabilities as a former law clerk, web designer, marketing consultant, and legal research assistant.
|
Get Proposal View Profile
Adam N.

Adam Nagreski

Adam Nagreski has been licensed to practice law in Illinois for over three years. He obtained his J.D. at the Southern Illinois University School of Law and has worked with companies such as Franklin County State’s Attorney and The Center for Financial, Legal and Tax Planning in his local area. Adam specializes in a variety of business legal cases, including the formulation of businesses, real estate, employment and copyrights.
|
Get Proposal View Profile
Michael B.

Michael Brennan

44 reviews
Your legal question is important, regardless of whether it is big or small. Michael Brennan firmly believes that every business deserves a lawyer that is both responsive and dependable and he strives to provide that type of service to every client. Mr. Brennan can help with various business law issues, including business structuring and funding and general transactional issues.
|
Get Proposal View Profile
Drew W.

Drew Whiting

5 reviews
Entrepreneurs face many unique challenges, and Drew Whiting understands that first hand because he is an entrepreneur himself. He loves sharing his legal knowledge and experience with up and coming businesses. He has experience working with mobile businesses, those who offer financial services, packaged good manufacturers, restaurants, bars, and taverns, and several technology-related enterprises.
|
Get Proposal View Profile

Why use UpCounsel to hire a Illinois S Corporation Formation Attorney?

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 S 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 S Corporation in Illinois

Starting an S Corporation in Illinois with a business startup attorney on UpCounsel is easy, informative, and cost-effective. In just three simple steps, our S Corporation attorneys will help you protect your business and personal assets, and help you organize your business for state and federal compliance for an S Corporation.

When forming an S Corporation in Illinois with UpCounsel, the attorney you choose to help you will conduct a business name search for your Illinois S Corporation and assist you in preparing your S 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 S Corporation has been formed and begins its existence as a corporate entity.

However, a corporation does not register as an S Corporation with the Secretary of State. It registers as a corporation with the state and then may file for S Corporation status with the IRS. S Corporation status is a taxation category which provides income tax advantages to small businesses.

Choosing a Company Name for Your S Corporation

One of the first steps in the process of forming your S 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 S Corporation reserved or registered.

Your S 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 S Corporation attorney can help you properly register your name with the State of Illinois.

Requirements for Forming a Illinois S Corporation

Articles of Incorporation: When forming an S 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 S Corporation.

This information must include:

  1. The S-Corp's name and address.
  2. The S-Corp's registered agent's name and address.
  3. The purpose for which the S 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 S Corporation formation generally requires inclusion and/or consideration of the following:

S Corporation Qualification Requirements: For a corporation to qualify as a S 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 S Corporation formation generally requires inclusion and/or consideration of the following:

S Corporation Operating Agreement: Although the S Corporation Operating Agreement is not required with the Articles of Incorporation, it is a good idea for every S 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 S 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 S Corporation directly from the S 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 S Corporation members, excluding the vote of the person acquiring the membership interest, and only when the person becomes a party to the S-Corp's operating agreement.

Business Licenses: Business licenses and/or permits are required for most S-Corp's offering specific professional services. Contact the Illinois State Corporations Commission for specific licenses.

Resident Agent needed for a Illinois S Corporation

Remember every Illinois S 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 S 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 S Corporations

Annual Report: Each S 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 S-Corp's anniversary date and the filing fee is $75.

Incorporator's Statement: Each S 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 S 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 S-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 S Corporation

A Illinois S 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 S 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 S Corporation for federal income tax purposes, so will it be taxable as a corporation for state tax purposes.

Federal Income Tax: An S Corporation does not pay federal income tax.

Illinois State Income Tax: Illinois does not impose an income tax on businesses. However, Illinois S 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 S Corporation. An EIN is similar to an individual's social security number. You will need an EIN for your S Corporation as long as there is one member, even if the S 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 Attorney in Illinois

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