All Illinois corporations, LLCs, nonprofits, and LPs must file an annual report each year with the Illinois Secretary of State, Department of Business Services. In addition to filing an annual report, every corporation must also pay an annual franchise tax. The following is an easy-to-read guide for how to file the Illinois Annual Report yourself. Our instructions also include due dates, filing fees, required information, and answers to questions you may have along the way. Or, you can avoid the hassle of filing all together and hire us to do it for you!
Follow the steps below to successfully file your Illinois Annual Report:
The following instructions will guide you through the process of filing your Illinois Annual Report.
Illinois Annual Report Fee Schedule
Corporations – foreign and domestic
Before the first day of your anniversary month
Online or Paper Form
LLCs – foreign and domestic
Before the first day of your anniversary month
Online or Paper Form
Nonprofits-foreign and domestic, Cooperatives, and Religious Corporations
Before the first day of your anniversary month
Online or Paper Form (foreign Nonprofits must file the paper form)
LPs – foreign and domestic
Before the first day of your anniversary month
Late Fees: The penalty for failing to file an annual report and/or paying your franchise tax varies by entity. Corporations will be assessed 10% of the total franchise tax due. Nonprofits will pay an additional $3 and LLCs an additional $100. LPs won’t be charged a penalty fee; however, they may be administratively dissolved if no report is filed 60 days after their due date.
Don’t remember when you formed your business? You can easily look up your anniversary month by searching the Illinois Business Database.
Only Illinois corporations pay the franchise tax. All other entities are exempt from the franchise tax.
The state of Illinois offers two ways of calculating your total franchise tax – and encourages businesses to use the process that results in the smallest amount due. Here’s a quick breakdown of both options:
1)The Allocation Factor: To use this method, you’ll need to know your corporation’s total gross assets and revenue.
Allocation Formula: b+d divided by a+c = your franchise tax
(a) total value of property owned (anywhere).
(b) total value of property owned in Illinois.
(c) total gross assets earned during the previous fiscal year (all locations).
(d) total gross assets earned from business conducted in Illinois during the previous fiscal year.
2) Paid-in-Capital: This method is based on the amount of money your business earns from its shareholders in exchange for stock. The first year, you’ll pay 0.15% of your total paid in capital. Afterwards, you’ll pay 0.1%.
So in 2020, if either calculation method (allocation or paid in capital) results in an amount less than $30, then your total franchise tax due will be $0.
Illinois Annual Franchise Tax Exemptions Amount
Although most Illinois Annual Reports can be filed online or by mail, there are a few exceptions you’ll need to consider.
You can only file by mail if any of the following is true:
To File by Paper:
Here’s a complete list of everything you’ll need to include, verify, and/or update on the Illinois Annual Report:
Online filings must be paid with a credit card. Mailed filing must include a check or money order payable to “Secretary of State.”
Don’t want to stress about remembering to file, late fees, or potential penalties? Hire Northwest Registered Agent to file your Illinois Annual Report for you! We’ve got you covered!
For $100 plus the state-mandated report fee, we’ll file your annual report. For most domestic LLCs, that’s $175 total. If you own an Illinois corporation, we will send you the completed annual report for you to add your tax information, then submit the report for you.
At Northwest Registered Agent, we’re committed to protecting our clients’ privacy. Illinois Annual Reports are public record, so we’ve designed our annual report service to protect your privacy. Here’s how:
We believe everyone has the right to keep their information private. That’s why privacy is our guiding principle when we create every service and product.
No, new businesses in Illinois do not have to file initial reports.
The penalty for failing to file an Illinois Annual Report will vary by business type. Corporations will be charged 10% of the total franchise tax due. Nonprofits will be charged an additional $3 and LLCs $100. LPs won’t be assessed a late fee; however, your business may be administratively dissolved or revoked if no report is submitted within 60 days after your due date.
Online filings are processed immediately. Mailed filings take significantly longer – 10 to 15 business days. Need expedited filing? Add an additional $50 (corporations, LLCs, LPs) OR $35 (nonprofits).
After starting a business in Illinois, your Illinois Annual Report can be filed by anyone authorized to act on behalf of the business. This could be an officer/director, member/manager, or someone your company hires to file the annual report on its behalf. Or, hire Northwest Registered Agent for business renewal service, and we’ll file it for you!
No, Illinois doesn’t require original signatures. Annual reports can be submitted with electronic signatures.
Illinois Secretary of State
Department of Business Services
501 S. Second Street, Room 350
Springfield, IL 62756
T: (212) 782-7808