Summary
The fact that you may need to register with state agencies like Illinois Secretary of State is a sneaky misconception that many folks miss.
However, with the rise of remote work, states have begun cracking down and levying penalties for those who (unknowingly) fail to register.
If you're considering operating in Illinois, use this guide to:
- Explore the that triggers the need to register with the Illinois Secretary of State, including criteria such as physical presence, economic activity, and advertising efforts.
- Determine where and how to register with the Illinois Secretary of State.
- Understand additional requirements such as Registered Agents, registration with other state departments, and ongoing annual reports.
What criteria would trigger the requirement to register with the Illinois Secretary of State?
Factors that might indicate "doing business" in Illinois:
- Physical Presence: Maintaining an office, store, warehouse, or any other physical establishment in the state.
- Employees: Hiring employees who live and work in Illinois.
- Regular Business Activity: Consistently conducting sales, providing services, or engaging in other income-generating activities within the state.
- Deriving Income from Illinois: Earning significant revenue from customers or clients located in Illinois.
Activities that might NOT be considered "doing business" in Illinois:
- Isolated Transactions: Conducting a single or infrequent sale or project in Illinois, without a pattern of regular activity.
- Interstate Commerce: Primarily engaging in the movement of goods or services across state lines.
- Passive Investments: Owning property or investments in Illinois without actively managing them.
- Litigation: Defending or bringing legal action within Illinois.
Where do I register, and what else is required?
- A Certificate of Good Standing is not required
In addition:
A Registered Agent is required to serve as the company's physical in-state presence to receive important legal documents. Do not fall victim to the common misconception that you can leverage an in-state employee as your Registered Agent. It's far too risky.
You'll want to review the other registrations required in Illinois. Here's a Illinois specific guide we put together.
What is the registration fee?
The fee charged by Illinois is $150 (if registration is needed).
How long does Illinois usually take to process?
Illinois usually takes approximately 1 - 2 weeks to process registrations.
What is required ongoing?
Each state has a complex schedule of required annual reports, which can vary by entity type. Let's take a look at Illinois's:
C-Corporation
- Filing Date: By the end of the month PRIOR to the registration anniversary month
- Filing Frequency: Annual
LLC
- Filing Date: By the end of the month PRIOR to the registration anniversary month
- Filing Frequency: Annual
Non-Profit
- Filing Date: By the end of the month PRIOR to the registration anniversary month
- Filing Frequency: Annual
There is an Easier Way
Automate registration and annual report tracking in AbstractOps.This guide should definitely help reduce some of the confusion for Illinois. However, if you have multiple states to worry about, you may look to:
Automate state registrations and annual reports
Centralize email, snail mail, state ID’s, and registered agents, and
Take control of action items, eliminating risks before they become penalties.
Start the AbstractOps product demo to see how easy this can be.
Note: For the avoidance of doubt, nothing provided here shall contemplate, constitute or include tax or legal advice. Always double check with state agency websites for the most up-to-date requirements.
