Illinois
Forming a Company in Illinois
Chicago is America’s third largest city and the urban jewel of Illinois. It is a logical state to form a corporation. Illinois serves as the heart of America both geographically and culturally. As the hub of a vast transportation network, Illinois is where East and West, North and South meet and mix. Big cities and small towns, quiet farms and heavy industry are all important parts of this microcosmic America.
Illinois is an international leader in business development. With its skilled workforce, unparalleled transportation and technology infrastructure, world-class educational institutions and advanced financial markets, Illinois is a premier location to start, expand or locate a business. Over thirty-three Fortune 500 Companies are headquartered in Illinois including: ADM, Abbott, Baxter, Boeing, Caterpillar, Dade Behring, John Deere, Kraft, Motorola & SaraLee etc.
Service industries provide the largest portion of income to the Illinois economy. Community, business and personal services (private health care, hotels, law firms, repair shops, accounting firms, advertising agencies, engineering companies, law firms) lead the way in the services industry. Finance, insurance and real estate industries rank second, with real estate producing the most income in this group.
Illinois promotes a healthy business climate through numerous public and private support agencies. Advantages for Illinois incorporation includes following among others:
- Avoid Corporate Franchise Taxes: Your business located and incorporated in Illinois does not have to pay additional corporate franchise fees as charged by some other incorporating states, resulting in substantial savings up front and in future years.
- Reduced Legal Costs: You may avoid thousands of dollars in legal and administrative costs associated with maintaining corporate affairs in two states.
- Illinois businesses that incorporate in their home state have more control over corporate affairs. They enjoy more flexibility and can better protect the interests of their employees, shareholders, investors and clients. An Illinois company that incorporates here also can participate more effectively in the evolution of the corporate laws under which it operates.
- Excellent Workforce: Illinois has a wonderful workforce that is one of the most productive and educated in the country. Nearly half of Illinois’ six million workers are professionals, skilled technicians, craftspeople and machine operators. Over 1.2 million people in Illinois work in biotechnology and related fields, including 210,600 high tech workers.
- Unparalleled Infrastructure: Not only does Illinois offer one of the best interstate highway networks in the nation, but Illinois is also at the center of the national rail network & is home to O'Hare International Airport, the world's 2nd busiest airport, as well as major commuter hubs both at Midway Airport and throughout downstate Illinois.
- In addition, Illinois is home to a dozen port districts, some located in Foreign Trade Zones, which provide low-cost production and warehousing facilities for imported and export-bound products. Illinois has one of the most technologically advanced and cost-effective telecommunications infrastructures in the USA. These things have a lot of effect on businesses as it offers excellent transport facilities.
- Abundant Energy Resources: Illinois makes sure that the businesses are provided with long term stability for the proper functioning of the businesses with sources of energy & electricity supply. Besides it is also one of the major nuclear power generators in U.S. and holds 1/8 of the total U.S. reserves of coal.
- Avoiding Double Taxation: Selecting an Illinois incorporation for-profit, Subchapter S corporation entitles shareholders to "pass through" corporate earnings without experiencing double taxation, as is the case with the more widespread C corporation.
- Access to Key Industries: The diverse nature of Illinois makes it a proven location for your company incorporation. From manufacturing, to agriculture, to warehousing, to the new emerging fields in technology, Illinois is a successful home for all.
- Illinois has also adopted a limited liability company (LLC) law and, more recently, a limited liability partnership (LLP) law, so that businesses operating in Illinois in LLC or LLP form may now obtain the advantages of limited liability, without incorporating or becoming subject to corporate taxation, generally.
- Illinois also offers different types of incentive programs for the businesses to function.
Some of the major benefits you can experience while incorporating in Illinois include:
- Protection of Assets: In the event of a lawsuit or if business fails, personal assets can not generally be touched. This limited liability feature of corporations is not available in a sole proprietorship or partnership, where the individual or partners are personally liable for all business debts.
- Additionally, when incorporate in Illinois, there is a greater degree of separation between personal information, life and activities and corporation’s information, life and activities. This leads to enhanced privacy for owner and family.
- Pass-through taxation allows owners to report profit and loss on their individual tax returns
- Tax Advantages: Your corporations and LLCs can take advantage of tax savings options that are not available to sole proprietorships or partnerships. For example, Illinois corporations can establish pension, profit-sharing and stock ownership plans, which can lower the corporation's taxable income.
- Raise Capital: When incorporating in Illinois, you can raise capital by issuing stock, bonds or other securities.
- Long Life: By forming a company in Illinois, one becomes part of the pool of corporations and LLCs that are the most enduring form of business structure. If a corporation owner dies, their portion of the business can be transferred quickly without interruption of the corporation's operations. Estate and family planning is simplified since shares of a corporation can be easily distributed to family members.
With the help of The Department of Commerce & Economic Opportunity (DCEO), the Illinois government is availing its best possible resources and regulatory structures in new business formations.
Illinois is a great state in which to form your company and Elite Incorporation is glad to help you make that happen.
Useful Links
State Home Page
http://www.illinois.gov/
Illinois Corporation and Business Entities Law
http://www.ilga.gov/legislation/ilcs/ilcs2.asp?ChapterID=65
Illinois Secretary of State
http://www.cyberdriveillinois.com/
Illinois Division of Corporations
http://www.ilga.gov/legislation/ilcs/ilcs2.asp?ChapterID=65
Illinois Department of State
http://www.illinois.gov/