Your Illinois Professional Corporation name can identify the type of products and services your business will provide; or it may be the name of the founder; or it can be a combination of the two or something else.

In any case, the Illinois Professional Corporation name that you choose must be distinguishable from the name of any other registered Illinois Professional Corporation or other business entity and the name must also be different from any reserved names on record with the state of Illinois.  Your Illinois Professional Corporation name must not imply that it was formed for a purpose other than that stated in your Articles of Incorporation; and your Illinois Professional Corporation name must not be a name that is likely to mislead the public.

The name of an Illinois Professional Corporation must include the word "Corporation" or "Incorporated" or an abbreviation of one of these words.

It's important to choose a good name for your Illinois Professional Corporation because if you want to change it after you incorporate you will have to file amended Articles of Incorporation with the Illinois Secretary of State (and pay a fee).

Every Illinois Professional Corporation must have an address that is physically located in the state of Illinois.  This address is "registered" with the Illinois Secretary of State.  The Registered Address is where official and legal correspondence can be delivered.

The individual or company that is registered with the state of Illinois to receive all correspondence on behalf of the Illinois Corporation is called a "Registered Agent".  You may act as your own Registered Agent, however, many Illinois Professional Corporations hire a Registered Agent because they don't have a physical address within the state of Illinois or to provide a distinct level of privacy.

All Illinois Professional Corporations are required to have a Board of Directors.  Directors are the people who will set policies for your Illinois Professional Corporation and manage the business and its resources.  In the majority of small corporations directors are the owners. The Articles of Incorporation or Corporate Bylaws may define specific qualifications for Directors. 

The Board of Directors is responsible for creating rules, approving budgets and distributing profits to shareholders. One of the most important duties of the Board of Directors is electing Officers for your Illinois Professional Corporation.  The same person may be a Director and an Officer at the same time.  Directors need not be residents of the state of Illinois or shareholders of the Illinois Professional Corporation unless the Articles of Incorporation or Bylaws require it.

Normally Directors for your Illinois Professional Corporation are elected for a term of one year.  Elections are held at the annual meeting of Shareholders.  The Directors serve until the next annual Shareholders meeting.

The Board of Directors elects Officers for your Illinois Professional Corporation in accordance with the Corporate Bylaws and Articles of Incorporation.  Officers serve at the pleasure of the Board of Directors of the Illinois Professional Corporation.  Officers handle the day to day operation of the Illinois Professional Corporation.

Unless specifically prohibited by the Corporate Bylaws or Articles of Incorporation, in a Illinois Professional Corporation the same person may hold more than one Corporate Office at the same time.  However, there are certain legal affairs in which the same person cannot act in more than one capacity.

One Officer - usually the Secretary - is given responsibility for preparing Minutes of Directors and Shareholders meetings and for authenticating records for the Illinois Professional Corporation.

The Illinois Corporate Income Tax Rate is %.  You may form an S Corporation in Illinois.  S Corporations may "pass through" all corporate profits to the shareholders (owners) who then pay tax at their applicable personal rate.  S Corporations do not pay any Illinois Corporate Income Tax.

In order to form a Corporation in Illinois you must file Articles of Incorporation with the Illinois Secretary of State.  The Articles of Incorporation must include certain specific information about your Illinois business. If the Articles do not conform exactly to state of Illinois requirements they will be rejected.  You may subsequently amend the Articles of Incorporation for your Illinois Professional Corporation but you will have to pay a fee to the state of Illinois in order to make the changes official.

A Federal Employer Identification Number, also known as a Federal Tax Identification Number, is used by the IRS to identify a business entity.  An FEIN is like a Social Security Number for your Illinois Professional Corporation.  All Illinois Professional Corporations are required to have an FEIN.

Corporate stock is evidence of ownership of a Illinois Professional Corporation.  When you form your Illinois Professional Corporation, you will need to determine what type of stock and the number of shares of each type that you want to authorize.  You do not have to sell the number of shares that are authorized.  Many small Illinois Professional Corporations hold 100% of the shares.

Stockholders in a Illinois Professional Corporation are entitled to voting rights or dividends of the Corporate profits or both.  Whoever owns over 50% of the stock of the Illinois Professional Corporation is able to make all Corporate business decisions.  Illinois Professional Corporations usually hold at least 51% of the corporate stock in order to retain control of the Illinois Professional Corporation.

The Board of Directors holds an initial meeting to elect Officers, authorize issuance of stock and adopt the Corporate Bylaws.  Bylaws are the internal rules of your Illinois Professional Corporation.  They are adopted by the Board of Directors and vary widely from Corporation to Corporation.  Commonly bylaws include the number of seats on the board of directors; how Directors are elected; how meetings of Directors and Shareholders are to be conducted; what Officers the Illinois Professional Corporation will have and a description of each of their duties. 

As your company grows over time, you may amend your bylaws as necessary.  Bylaws generally cannot be amended by the Board of Directors unilaterally.  A vote by the majority of Stockholders of the Illinois Professional Corporation is usually required to amend the Corporate Bylaws.  Bylaws may include any rules for managing the business and conducting corporate affairs.  Almost anything may be written into the Bylaws, however, the Bylaws must not be in violation of any federal or Illinois law or the Illinois Professional Corporation's Articles of Incorporation.  A copy of the Corporate Bylaws should be maintained at the Corporation's principal Illinois office.

It's very important that you have a separate business bank account for your Illinois Professional Corporation.  Mixing personal and business funds can get you in a lot of trouble with the tax man down the line.  It's a good idea to contact the bank before you open a business bank account.  Specific requirements vary from bank to bank.

Note that forming an Illinois Professional Corporation doesn't take the place of obtaining a business license, tax registration certificate, or other required business permits.  An Illinois Professional Corporation merely creates an ownership structure that limits the owners' personal liability.  You may still need to take care of getting set up to do business with your local government.

Depending on the nature of the business and the location of your Illinois Professional Corporation you may need to get one or more city business licenses or permits.  The business licenses or permits that are required for your Illinois Professional Corporation vary depending on your business activities and the specific locations within the state of Illinois in which you want to conduct business.

If your Illinois Professional Corporation will be selling products in Illinois you may be required to obtain a Reseller's Permit from the appropriate Illinois state agency.  If your Illinois Professional Corporation will be selling products in Illinois you will also be responsible for all applicable local and state of Illinois sales taxes if there are any.

Every Illinois Professional Corporation must hold corporate and shareholder meetings, at least annually, and must keep minutes of each meeting on file.  A copy of the minutes is evidence that the meetings took place and includes all resolutions that were adopted.  The minutes of each meetings must be open for inspection by any Shareholder or Director.  This meeting requirement is often overlooked and comes into play when the Illinois Professional Corporation is challenged for any reason.  Keeping proper meeting minutes and documenting resolutions made and approved by the Directors is a formality that could save your Illinois Professional Corporation a lot of potential trouble.

The Illinois Secretary of State does not have any Initial Corporation Annual Report requirements for new IL Corporations.

Every Illinois Corporation must file an Annual Report with the Illinois Secretary of State EACH year.

The Illinois Corporation Annual Report is due at the IL Secretary of State in the month previous to the anniversary month in which the Illinois Secretary of State initially approved the Articles of Incorporation for the IL Corporation.

For example, if the Illinois Corporation was approved by the Illinois Secretary of State on April 15, the next IL Corporation Annual Report would be due by March 31 of the following year.

If an Illinois Corporation does not submit its Annual Report to the IL Secretary of State by the due date then the Illinois Corporation will have to pay a late fee that is based on the annual franchise tax of the Illinois Corporation; and may eventually be administratively dissolved by the Illinois Secretary of State.