How to Start an S Corp in Illinois
- 1). Organize a business that meets the requirements to incorprate as an S Corp. These include having no more than 75 shareholders and only one class of stock. The corporation must be formed within the United States and cannot be a bank, insurance company or domestic international sales corporation. To be treated as an S Corp, the organization must be formed before March 15 of the tax year to which the S Corp. status will be applied.
- 2). Obtain and complete the appropriate business incorporation form, which can be downloaded from the Secretary of State's website at www.ilsos.net. For an S Corp, you will need to download and fill out the articles of incorporation (Form BCA-2.10) and the Application for Reservation of Name (Form BCA-4.10).
- 3). Send in the forms with the filing fees to the Illinois Secretary of State. For articles of incorporation, the fee in February 2010 was $150 and for name registration the fee was $25.
- 4). File as an S Corp with the IRS, using Form 2553, Election by a Small Business Corporation. The form must be signed by all shareholders. You can obtain this form at www.irs.gov/businesses/small.
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