What is Illinois Corporation Dissolution? |
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An Illinois Corporation is created when the IL Secretary of State approves the Articles of Incorporation.
A record of the Illinois Corporation is added to the list of Corporations which have officially registered with
the Illinois Secretary of State.
Once a Corporation is registered with the Illinois Secretary of State, that Corporation immediately has both reporting and tax
obligations which incur penalties if the obligations are not met by the required deadlines.
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An Illinois Corporation is created when the IL Secretary of State approves the Articles of Incorporation.
A record of the Illinois Corporation is added to the list of Corporations which have officially registered with
the Illinois Secretary of State.
Once a Corporation is registered with the Illinois Secretary of State, that Corporation immediately has both reporting and tax
obligations which incur penalties if the obligations are not met by the required deadlines.
If you've registered an Illinois Corporation with the Illinois Secretary of State and want to cease business activities
you have to let the IL Secretary of State know that you intend to close your company.
Only after the IL Secretary of State has made sure that all of the obligations of the Illinois Corporation have been fulfilled will
the Secretary of State approve of the closure of the company.
When the Illinois Secretary of State approves the closing of an IL Corporation, that Illinois Corporation is said to be
Dissolved.
The process of Dissolving an Illinois Corporation is called Illinois Corporation Dissolution.
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Why do I need to Dissolve an Illinois Corporation? |
As soon as an Illinois Corporation is registered with the IL Secretary of State, that Corporation is responsible for
recurring obligations of the Illinois Secretary of State and the Illinois Department of Revenue.
If the Illinois Corporation does not file reports or pay taxes then that IL Corporation could be responsible for
penalties which go up as time goes by.
Unless you Dissolve your Illinois Corporation with the Illinois Secretary of State that IL Corporation will be responsible for
all recurring fees and penalties.
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What do I have to do to Dissolve an Illinois Corporation? |
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Illinois Corporation Dissolution is one part of a larger process commonly called the "Winding Up" process.
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Illinois Corporation Dissolution is one part of a larger process commonly called the "Winding Up" process.
There are things you need to do before you can request approval of Corporation Dissolution from the Illinois Secretary of State;
and things that you have to do after the IL Secretary of State has approved Dissolution of the Illinois Corporation.
What you have to do both before and after the Illinois Corporation is Dissolved largely depends on how much stock, if any, has been
issued and how much and what kind of debts and liabilities that the Illinois Corporation has.
If the Illinois Corporation has not commenced business then the IL Corporation Dissolution process is easier.
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What do I have to do before I Dissolve an Illinois Corporation? |
Things you need to do before you Dissolve an Illinois Corporation.
1. Hold a Directors meeting and record a resolution to Dissolve the Illinois Corporation
2. Hold a Shareholder meeting to approve Dissolution of the Illinois Corporation
3. File all required Annual Reports with the Illinois Secretary of State
4. Clear up any business debt
5. Pay all taxes and administrative fees owed by the Illinois Corporation
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1. Hold a Board of Directors meeting and record a resolution to Dissolve the Illinois Corporation
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If a Board of Directors has been appointed for the Illinois Corporation then the Board is required to adopt a
resolution to Dissolve the IL Corporation.
Minutes of the meeting must be recorded and retained in the business records.
If the Board of Direcrtors has not been appointed then the Incorporator(s) have to apply for Dissolution of the Illinois Corporation.
- We can transcribe and compile minutes or approvals into a form that is legally recognized by the Illinois Secretary of State.
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2. Hold a Shareholder meeting to approve Dissolution of the Illinois Corporation
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If an Illinois Corporation has issued shares of stock then a majority of Corporate Shareholders must approve the Dissolution plan.
The approval actions should be documented and kept in the business records.
If no shares have been issued then the Illinois Corporation Dissolution process is easier.
- If necessary, we can transcribe and compile minutes into a form that is legally recognized by the Illinois Secretary of State.
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3. File all required Annual Reports with the Illinois Secretary of State
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The Illinois Secretary of State will not approve the Dissolution of a IL Corporation until all required
reports have been filed.
- We can file any required Annual Report with the IL Secretary of State.
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4. Clear up any business debts
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All creditors of an Illinois Corporation should be given notice of the pending Corporation Dissolution.
Each creditor should be given a mailing address to which they may submit claims as well as a deadline by which claims may
be submitted.
While the Illinois Secretary of State does not legally require the publication of a Notice of Dissolution of an Illinois Corporation, publication is
a good way to notify anyone who might have a claim against the Illinois Corporation.
Evidence of publication might prove useful down the line if someone makes a claim against the IL Corporation after
the Illinois Corporation has been dissolved.
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5. Pay all taxes and administrative fees owed by the Illinois Corporation
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The Illinois Secretary of State will definitely not approve the Dissolution of an Illinois Corporation until all
outstanding taxes and applicable registration and administrative fees have been paid.
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What do I have to do after I Dissolve an Illinois Corporation? |
Things you have to do after you Incorporate in Illinois.
1. Distribute all remaining assets of the Illinois Corporation
2. Close all business bank accounts of the Illinois Corporation
3. Cancel all local business licenses and permits
4. File Form 966 with the IRS
5. Cancel the IRS account associated with the IL Corporation's Federal Tax ID (EIN)
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1. Distribute all remaining assets of the Illinois Corporation
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If the Illinois Corporation has any remaining assets, these may be divided according to the Shareholders' ownership interests
in the IL Corporation.
All distributions to Corporate Shareholders must be reported to the IRS.
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2. Close all business bank accounts of the Illinois Corporation
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If there are any business accounts that have been opened for the Illinois Corporation then those accounts must be closed.
If Corporate business accounts are left open there may be liability and obligations of the Dissolved Illinois Corporation which could
lead to legal problems.
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3. Cancel all local business licenses and permits of the IL Corporation
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If the Illinois Corporation has obtained any state, regional, county or city business licenses or permits, each
of those must be cancelled to avoid any reporting or fiscal obligations of the Illinois Corporation.
This includes business registration licenses as well as reseller permits.
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4. File IRS Form 966
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All Dissolved Illinois Corporations must file IRS Form 966 with the US Internal Revenue Service.
This filing is required within 30 days after the final Dissolution plan is approved.
Filing IRS Form 966 lets the Federal Government know that the Illinois Corporation has been legally Dissolved
so that it may take the appropriate actions.
- We can prepare IRS Form 966 for you to file.
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5. Cancel the IRS account associated with the IL Corporation's Federal Tax ID (EIN)
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A Federal Tax ID, or Federal Employer Identification Number (EIN), is like the Social Security Number for the Illinois Corporation.
Once the IRS links an EIN to a Illinois Corporation, that EIN stays with the Illinois Corporation even after the Company has been Dissolved by the
Illinois Secretary of State.
When the IRS processes the final tax return for the Illinois Corporation, they automatically make the EIN inactive.
However, the account associated with the EIN is not automatically closed.
Closing the account associated with the EIN lessens the likelihood of any problems with the EIN account, or with the IRS, in the future.
If you should decide to revivie the Illinois Corporation down the line the IRS will reactivate the old EIN for your new Business.
Before an Illinois Corporation can close an EIN account, it must be in Good Standing with the IRS.
The Illinois Corporation must have filed all required tax returns and paid any applicable fees and penalties due to the IRS.
The Illinois Corporation cannot close its EIN account until the IRS has received payment for any tax amounts the Company may owe.
- We can prepare the formal documents which you can sign and submit to the IRS in order to close the account
associated with your EIN.
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How long does it take to Dissolve an Illinois Corporation? |
The time it takes to Dissolve an Illinois Corporation varies depending on how long it takes to complete the actions that are
required in each specific case - holding meetings, closing accounts, distributing assets, etc.
Once the initial actions are completed, the Illinois Secretary of State usually takes around 7-10 business days to process the Articles of Dissolution.
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The time it takes to Dissolve an Illinois Corporation varies depending on how long it takes to complete the actions that are
required in each specific case - holding meetings, closing accounts, distributing assets, etc.
Once the initial actions are completed, the Illinois Secretary of State usually takes around 7-10 business days to process the Articles of Dissolution.
Processing times for Illinois Corporation Dissolution filings vary depending on the work load of the
Secretary of State's staff.
We've found that normal processing of Illinois Dissolution filings takes the state around 7-10 business days.
PLEASE NOTE: WE CANNOT GUARANTEE ILLINOIS SECRETARY OF STATE PROCESSING TIMES.
We are dependent on, and have no control over, the staff and systems of the Illinois Secretary of State .
In our experience 7-10 business days is the time it usually takes the Illinois
Secretary of State to process an Illinois Dissolution filing.
We get your Illinois Corporation Dissolution filing to the IL Secretary of State ASAP.
Once it is at the state we have no control over the Illinois Dissolution approval process.
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How much does it cost to Dissolve a Corporation in Illinois? |
The total cost to Dissolve an Illinois Corporation varies depending on exactly what is required for each specific
IL Dissolution.
We charge $249.00 plus any state fees for our Illinois Corporation Dissolution services. This includes:
- Same day processing
- Transcribe minutes of Board of Directors meeting which proposes Dissolution
- Transcribe minutes of Shareholders meeting at which Dissolution was approved
- Prepare and file Articles of Dissolution with the Illinois Secretary of State
- Prepare US IRS Form 966 for you to sign and file
- Prepare documents to cancel Federal EIN account
- Certified copy of Dissolution filing from IL Secretary of State
- Priority Mail Delivery of all documents
- Unlimited Customer Support
We also offer these Illinois Corporation Dissolution services separately as explained on the right side of this web page.
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What do I have to do if I want to Dissolve a Foreign Corporation that is tied to an IL Domestic Corporation? |
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If there are Foreign Corporations in states other than Illinois that are tied to the Domestic Illinois Corporation then
each of those Foreign Corporations must be Dissolved before the Illinois Corporation is legally Dissolved.
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How long before someone can use my Corporation name in Illinois after I Dissolve? |
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An Illinois Corporation company name becomes available for anyone to use when the Illinois Corporation is Dissolved by the Illinois Secretary of State.
There are no Corporation company name protections in Illinois once an Illinois Corporation has been Dissolved by the Illinois Secretary of State.
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Do I have to publish a Notice of Dissolution of the Illinois Corporation? |
There are no state of Illinois requirements for the publication of a Notice of Dissolution of an Illinois Corporation.
While the Illinois Secretary of State does not legally require the publication of a Notice of Dissolution of an Illinois Corporation,
publication is a good way to notify anyone who might have a claim against the Illinois Corporation.
Evidence of publication might prove useful down the line if someone makes a claim against the IL Corporation after
the Illinois Corporation has been dissolved.
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