Leverage the Best S-Corp Formation Services in Illinois

Our trusted partner Inc Authority offers free business formation services and will help you through the entire process making it hassle-free. They’ve helped form over 250K businesses and can help you too.

Start Your S-Corp Today

1Year Registered Agent Service Free

Form an S-Corp in Illinois by just filing the state fees and Inc Authority will take care of the rest for free.

You will also get a reliable registered agent for one year with any of their free or paid plans, absolutely free.

Elect for the S-Corp status by filing Form 2553 of the Internal Revenue Service with Inc Authority’s help.

Why Should You Form an S-Corp in Illinois?

Any domestic corporation or an LLC can choose the S-Corp designation for tax purposes. You can get many tax benefits with the S-Corp tax designation.

Check out the key benefits of starting an Illinois S-Corporation:

    • If you have an Illinois LLC, you can convert it to an S-Corp to avoid paying self-employment taxes & saving money.
    • An Illinois Corporation can opt for the S-Corp status to avoid paying federal income tax & avoid double taxation.
    • The S-Corp status allows pass-through taxation, so business income will be taxed on owners’ personal income tax returns.
    • Even if they’re taxed like Sole Proprietorships, S-Corps have a formal structure that is considered more credible by stakeholders.

An S-Corp in Illinois provides the tax benefits of a Sole Proprietorship with the liability protection and ease of raising capital of a Corporation or an LLC.

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Select a Business Name

Before you can start an S-Corp in Illinois, you need to choose a unique business name that no other business is using. To ensure that you need to check the state databases to see if any other business has the same or similar name.

Inc Authority makes this process easier. You can use the search tool on their website to enter your business name and it will search the databases to find a match. If there’s no match, you can go ahead and use your chosen name.

Select a Business Name
Get an Illinois Registered Agent

Get an Illinois Registered Agent

The next in this guide to starting an S-Corp in Illinois is to find and hire a reliable registered agent. The individual or organization should be available at the given address during business hours to receive all business correspondence.

You can, of course, choose to be your own agent, but that would limit your ability to be out of the office during business hours. A better way is to leverage the registered agent services of Inc Authority, which are free for the first year.

Create an Operating Agreement or Corporate Bylaws

Before you start a business, you need to set down some ground rules on how it would be run, who’ll be responsible for what, and how conflicts would be resolved. That’s where LLC operating agreements and corporate bylaws are useful.

These documents will govern how your business will operate and how strategic business decisions will be taken. If you take Inc Authority’s paid plans, they help you prepare a detailed LLC operating agreement or corporate bylaws.

Create an Operating Agreement or Corporate Bylaws
Register Your Illinois LLC or C-Corp

Register Your Illinois LLC or C-Corp

Before you can start an S-Corp in Illinois, you’ll need to form an Illinois Corporation or Illinois Limited Liability Company. This requires you to fill out an application, along with all required documents, and submit it to the Secretary of State.

Inc Authority offers this service for free, wherein their team will review and file the paperwork, ensuring there are no errors and your application gets approved smoothly. They will expedite the filing if you choose the Fasttrack plan.

Apply for an Employer Identification Number

Once you’ve registered your business, the next step before you can get the S-Corp status is to apply for an EIN or Tax ID. It’s like the social security number of your business and helps the IRS identify your business for tax purposes.

An EIN is necessary for businesses to hire and pay employees, file taxes, acquire funding, open a business bank account, and other purposes. With Inc Authority’s paid plans you can apply for an EIN online and get it quickly.

Apply for an Employer Identification Number
File Form 2553

File Form 2553 to Get the S-Corp Tax Status

The final step for forming an S-Corp in Illinois is to fill out and submit Form 2553 of the Internal Revenue Service. This is the S-election form that shows that you want your business to be taxed as an S-Corp or get the S-Corp tax status.

Inc Authority will help you through the process of preparing and filing the form and will ensure that there are no mistakes. They’ll review and submit the paperwork on your behalf and get you the S-Corp tax designation in no time.

Choose Inc Authority to Start an S-Corp

Why Choose Inc Authority to Form an S-Corp in Illinois

As you now know, forming an S-Corp in Illinois requires multiple steps and a single mistake can get your application rejected. Inc Authority takes away the scope for error by getting your application reviewed and filed by experts.

Free-Service

Free Service

While other service providers charge hundreds of dollars for business formation services, Inc Authority does it for free—no hidden charges. You will get exceptional service and a hassle-free experience at zero cost.

Expert-Guidance

Expert Guidance

When working with Inc Authority you’ll get access to experts on business formation, tax planning, banking, funding analysis, and more. They’ll guide you through the entire process of starting and growing your new business.

Seamless-Process

Seamless Process

With Inc Authority taking care of your application and paperwork, you can rest assured there will be no hiccups. They’ll file your application and ensure that it gets approved without and hurdles, reiterations, or regulatory hassles.

Start an S-Corp in Illinois for Free

Free

Here are the features you’ll get with this plan:

    • Business name search: Allows you to quickly check if your chosen legal business name is unique and usable.
    • 1-year registered agent service: Provides you with a reliable registered agent for one year, completely free.
    • Digital document storage: Lets you store, organize, and access your documents online in a single dashboard.
    • Tax advisory: Lets you talk to tax professionals to get guidance on saving money on your income tax returns.
    • LLC or Corporation formation: Helps you form an LLC or Corporation or any other business entity for free.
    • S-Corp election and filing: Helps you file the S-election form to get the S-Corp status in Illinois state.
    • Business funding analysis: Provides you with a free analysis of your business funding needs & how to meet them.

This is the most popular plan offered by Inc Authority. It has all the basic features that you’ll need to start a new business in Illinois and get the S-Corp tax designation for it for tax purposes. For more advanced features and add-on services, you’ll need to upgrade to one of the paid plans.

Price: Free

Starter

This plan offers all the features of the free plan, along with the following:

    • LLC operating agreement/corporate bylaws: Experts at Inc Authority will help you prepare your LLC operating agreement or corporate bylaws.
    • Initial meeting minutes & resolutions: If you go the C-Corporation route, Inc Authority will help record the minutes of your initial board meeting.
    • Ownership or stock certificates: Their team of experts will help you issue ownership certificates or stock if you want to raise capital this way
    • Employer identification number: Inc Authority will help you quickly obtain an EIN or Tax ID by reviewing and filing your application correctly.
    • Corporate forms and documents package: They will give you free and customizable legal document templates for your business.
    • Annual compliance notifications: They’ll inform you about your business’s compliance requirements and upcoming deadlines.
    • Detailed tax consultation: Unlike the free tax consultation that’s part of the free plan, this will be more detailed and comprehensive.
    • Web domain + 5 business email addresses: With this plan, you’ll not only get a web domain but also 5 email addresses for your business.

Price: Custom

Fasttrack

The Fasttrack plan offers all the features of the Starter plan, along with the following additional services/features:

    • Dedicated customer success advisor: A dedicated account manager or success advisor will help you through the entire business formation process. They’ll provide guidance on how to form your business the right way and will always be available to answer any questions you may have.
    • Private banking specialist: You’ll get access to a banking expert who will help you choose the best banking account for your business and give you multiple options to choose from. They’ll ensure that your business checking account that meets your business requirements perfectly.
    • Personalized business advisory services: A dedicated business advisor will help you start your business and grow it quickly. They’ll help you through all the important tasks required in the initial phases of starting and running a business and help you take your business to the next level.
    • Expedited preparation & filing: This is the highest-tier plan and the only one that offers expedited filing service. Your S-Corp application will go right to the top of the pile and their team prepare and file it on the same day. If you want your business up and running quickly, this is the way to do it.

If you want premium, high-touch services with dedicated support and expert guidance, then the Fasttrack plan is the right choice for you. This plan offers a lot more than just S-corp formation, but useful advisory services to grow your new business and take it to new heights.

Price: Custom

FAQ

Both S-Corps and LLCs have their own set of advantages and disadvantages. 

An LLC is one of the most popular types of business entities as it offers liability protection, while also providing the flexibility of a small and uncomplicated business structure.

Some LLCs choose to be taxed as an S-Corp to get the benefits of pass-through taxation and avoid paying self-employment taxes. However that’s not the only way for LLCs to get tax advantages—itemized tax deductions are equally helpful.

It’s entirely up to you to decide which of the two business structures is better for you.

Yes, you can start an S-Corp in Illinois by yourself by paying the state fees, filing various applications, and providing proper documentation. However, the process can be overwhelming and a single mistake can get your application rejected. 

That’s where professional business formation service providers like Inc Authority can help you. They’ll take care of the entire process and paperwork for free, while you focus on more important tasks like growing your business.

Here are some of the key differences between an LLC and an S-Corp in Illinois:

    • An LLC needs to pay a self-employment tax on business profits before salaries are deducted, while S-Corp shareholders need only pay personal income tax on their respective salaries or taxable income.
    • An S-Corporation has a more formal business structure and it’s easier to raise funding for it than for an LLC, which usually relies on banks for funding.
    • An S-Corp is limited to a maximum of 100 shareholders, while a multi-member LLC has no limits on how many members it can have. 
    • LLCs also have a lot more flexibility on who can be the members, while Illinois S-Corporations have stricter regulations in that respect.
    • An Illinois S-Corp can issue one type of stock while an Illinois LLC can’t issue stock.
    • It’s easier to form and run an LLC than it is to form and run an S-Corp in Illinois.

Yes, Illinois recognizes the federal S-Corp tax designation and does not require you to make an S-election at the state level. This means that business income will pass through to shareholders, who’ll pay federal income taxes on their personal income.

Some S-Corps can choose to pay Illinois PTE taxes (pass-through entity taxes) on their net income, which individual owners who are tax-exempt can get a refund for in their personal income tax returns. The PTE tax rate is 4.95% for Illinois.

You can start an S-Corp in Illinois by simply paying the state filing fees and submitting your application, along with all required documents, to the Illinois secretary of state via fax, mail, or online application.

If you don’t want the hassle of filing complicated forms and dealing with government departments, you can outsource the task to a third-party service provider. While some business formation services charge hundreds of dollars, Inc Authority offers this service for free.

Inc Authority will prepare, review, and file your application, ensuring there are no mistakes, and submit it on your behalf. They’ll make the process much easier and simpler for you, and that too for free.

Choose Inc Authority to Form an S-Corp