Form Your Illinois S Corporation
Incorporate in the Prairie State and elect S-corp status for pass-through taxation and payroll tax savings, with access to Chicago's world-class business ecosystem
Filed in Illinois
The Prairie State · IL
- State filing fee$150
- Processing time5-10 business days (online)
- Our formation feeFree (you pay $100 if you choose a paid plan)
- Annual report$75/yr + franchise tax ($25 min, $10K exempt) — due Before the first day of anniversary month
- State tax rate9.5% corporate income tax
- Expedited option1 business day (24-hour service) (+$100)
Form your Illinois S-Corp — pay only the state filing fee, nothing more.
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Everything to launch your Illinois S-Corp
Free formation means you pay only the $150 state filing fee. All core services are included at no extra charge.
Articles of Incorporation filing
We prepare and submit your Articles of Incorporation to the Illinois Secretary of State.
Registered agent
Required in Illinois — we act as your agent for the first year.
EIN from the IRS
Your federal Tax ID — required to open a US business bank account and file taxes.
Corporate bylaws
Professionally drafted corporate bylaws — defines ownership, voting, and profit splits.
Benefits of forming an S-Corp in Illinois
Illinois pairs world-class transportation infrastructure with Chicago's standing as a global business center, giving an S corporation a strategic base in the heart of the US. The state's 9.5% corporate income tax is higher than some neighbors, but S-corp pass-through treatment moves taxable income to shareholders' personal returns and the reformed franchise tax now exempts the first $10,000 of liability.
Pass-through taxation avoids the C corporation's entity-level double tax
Self-employment tax savings on profit distributions beyond a reasonable W-2 salary
Limited liability protection for shareholders' personal assets
Central US location with world-class transportation and logistics infrastructure
Access to Chicago's global business center at lower costs than NYC or LA
Builds credibility with banks, investors, and clients as a formal Illinois corporation
Deep talent pool from top universities like Northwestern and the University of Chicago
Pass-through profits and losses flow straight to shareholders' personal returns
Key features of a Illinois S-Corp
- S-corp status is an IRS tax election (Form 2553), not a separate Illinois filing
- Pass-through taxation eliminates the C corporation's double tax
- Distributions above a reasonable salary are not subject to self-employment tax
- Central US location with O'Hare Airport and an extensive rail network
- Online incorporation through the Illinois Secretary of State in 5-10 business days
Major industries in Illinois
Form your Illinois S-Corp in 6 steps
We handle every step while you stay in the loop. Processing takes 5-10 business days (online).
- 01
Choose Your Corporation Name
Your name must include 'Corporation,' 'Incorporated,' 'Company,' 'Limited,' or an abbreviation. Search the Illinois Secretary of State's database to verify availability before filing.
- 02
Appoint a Registered Agent
Illinois requires a registered agent with a physical address in the state to accept legal and tax documents on behalf of your corporation.
- 03
File Articles of Incorporation
Submit your Articles of Incorporation to the Illinois Secretary of State to create the corporation. The filing fee is $150 and online filing takes about 5-10 business days.
- 04
Hold the Organizational Meeting
Adopt bylaws, appoint directors and officers, and issue a single class of stock. S corporations may have no more than 100 shareholders, all of whom must be US citizens or residents.
- 05
Elect S Corporation Status (Form 2553)
File IRS Form 2553 to elect S-corp tax treatment within 75 days of formation, or by March 15 to apply for the current tax year. This is a federal election, not a separate state filing.
- 06
Obtain an EIN and File the Annual Report
Apply for a free EIN from the IRS, then file the Illinois annual report before the first day of your anniversary month. The fee is $75 plus franchise tax.
Illinois S-Corp costs at a glance
Kicker formation is free — you pay only the required state fees. No hidden charges.
Illinois S-Corp requirements checklist
Everything you need to form and maintain a Illinois S-Corp in 2026.
- File Articles of Incorporation with the Illinois Secretary of State ($150)
- File IRS Form 2553 to elect S-corp status within 75 days of formation
- Limit ownership to 100 or fewer shareholders, all US citizens or residents
- Issue only one class of stock
- Pay shareholder-employees a reasonable W-2 salary before taking distributions
- Appoint a registered agent with a physical Illinois address
- File the Illinois annual report before the anniversary month ($75 + franchise tax)
Filing information
- Formation document
- Articles of Incorporation
- Filing agency
- Illinois Secretary of State
- Registered agent
- Required
- Corporate bylaws
- Recommended
- EIN
- Required
- Name reservation fee
- $25 (90 days)
Free formation — pay only the state fee
Kicker formation is free. You pay the $150 Illinois state filing fee and nothing more for the Starter plan. Optional plans add registered agent, EIN, corporate bylaws, and compliance.
Starter
- Articles of Incorporation filing
- Name availability check
- Digital document delivery
- Formation status tracking
Booster
- Everything in Starter
- Registered agent (required in Illinois)
- EIN / Federal Tax ID
- Expedited processing (1–2 days)
- Corporate bylaws
- Priority support
- Kicker Voice — 3-day free trial
- Kicker Pay — free for 15 days
Founder
- Everything in Booster
- Business mailing address
- Bookkeeping — 3 months free
- Dedicated account manager
- Rush processing
- Kicker Voice — 6-day free trial
- Kicker Pay — free for 30 days
Kicker
- Everything in Founder
- ITIN filing & preparation
- Same-day priority processing
- 2nd year annual filing $0
- Kicker Voice 12-day + Kicker Pay 60 days free
Compare all plans on our pricing page.
Illinois S-Corp questions, answered
Common questions about forming an S-Corp in Illinois. Can't find an answer? Talk to our team.
How do I form an S corporation in Illinois?
You first form a corporation by filing Articles of Incorporation with the Illinois Secretary of State for a $150 fee, then elect S-corp status with the IRS by filing Form 2553. The S corporation is a federal tax election, not a separate Illinois entity or filing.
How much does it cost to form an S corporation in Illinois?
The Illinois state filing fee for the Articles of Incorporation is $150. Ongoing costs include a $75 annual report fee plus franchise tax ($1.50 per $1,000 of paid-in capital, $25 minimum, with the first $10,000 of liability exempt from 2025). Electing S-corp status with IRS Form 2553 is free.
How long does Illinois take to process the incorporation?
Online filings with the Illinois Secretary of State typically take 5-10 business days. Expedited 24-hour service is available for an additional fee.
When do I file Form 2553 for the S-corp election?
File IRS Form 2553 within 75 days of forming your Illinois corporation, or by March 15 to have the election apply to the current tax year. Missing the deadline means the corporation is taxed as a C corporation until the next eligible year.
How does an Illinois S corporation save on taxes?
Profits pass through to shareholders, avoiding the C corporation's entity-level double tax. Shareholder-employees take a reasonable W-2 salary subject to payroll tax, while remaining distributions are not subject to self-employment tax. Illinois still applies its 9.5% corporate income tax framework, so state income tax remains.
Who is eligible to own an Illinois S corporation?
An S corporation may have no more than 100 shareholders, all of whom must be US citizens or resident aliens, and it may issue only one class of stock. Foreign owners are not eligible, so non-resident founders should consider a standard C corporation or an LLC instead.
Does my Illinois corporation have to file a BOI report?
No. Under FinCEN's March 2025 interim final rule, US domestic entities and US persons are exempt from Beneficial Ownership Information reporting. Only foreign-formed entities registered to do business in a US state still file.
What ongoing filings does an Illinois S corporation have?
You must file an Illinois annual report with the Secretary of State before the first day of your anniversary month, paying the $75 fee plus franchise tax (minimum $25). You also file federal Form 1120-S and provide each shareholder a Schedule K-1.
Illinois government filing resources
Filing fees for common S-Corp services
Official Illinois state charges for the filings you may need after formation — our service fee is separate, and we confirm the current amount before filing.
$25 to reserve an available name for 90 days across all entity types (LLC 1.15, BCA 4.10, NFP 104.10 each $25).
Flat per-document fee, not per-page.
$2 per document, same fee for an Apostille or a Certificate of Authentication.
No registration fee - the Illinois Dept of Revenue issues the Certificate of Registration free (the official pages describe registration with no fee.
Learn moreIllinois has no separate S-corporation state entity — an S-corp is an Illinois corporation with a federal IRS S election.
Learn moreIllinois has no separate S-corporation state entity — an S-corp is an Illinois corporation with a federal IRS S election (Form 2553).
Learn moreEverything you need to run your Illinois S-Corp
Formation is the first step — stay compliant and operational with these services.
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Ready to form your Illinois S-Corp?
Formation is free — you pay only the $150 Illinois state filing fee. Personal-asset protection, pass-through taxation, and a complete document package, filed in 5-10 business days (online).
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