What are the steps to follow to incorporate a business in Illinois, and what are the ongoing requirements?

To incorporate a business in Illinois, the following steps are required:

1. Choose a business name: The first step to incorporating a business in Illinois is to choose a name for the business that complies with the state's naming requirements. The name must include the word "corporation," "incorporated," "company," or "limited," or an abbreviation of one of these words.
2. File articles of incorporation: The next step is to file articles of incorporation with the Illinois Secretary of State. The articles of incorporation should include the name of the corporation, the purpose of the corporation, the number and types of shares the corporation is authorized to issue, the registered office and agent of the corporation, and the names and addresses of the corporation's initial directors.
3. Obtain business licenses and permits: Depending on the type of business and industry, there may be additional licenses and permits required to operate in Illinois. These requirements vary by location and business type, so it is important to check with the local and state authorities to determine what licenses and permits are required.
4. Obtain an Employer Identification Number (EIN): All corporations must obtain an EIN from the Internal Revenue Service (IRS) for tax purposes.
5. Hold an organizational meeting: After the corporation has been formed, an organizational meeting must be held where the directors are appointed, initial bylaws are adopted, and any other business deemed necessary is conducted.
6. File annual reports: Illinois requires corporations to file an annual report with the Secretary of State each year. This report includes information such as the names and addresses of the directors and officers, the address of the principal office, and the number of authorized and outstanding shares.
7. Maintain corporate records: It is important to maintain accurate and up-to-date corporate records, including minutes of meetings, shareholder agreements, and other important documents.

In order to maintain the corporation's status, the ongoing requirements include paying all necessary taxes, adhering to all state and federal laws, renewing business licenses and permits, filing annual reports, and maintaining accurate corporate records. Failure to comply with these requirements could result in the loss of the corporation's status or other legal consequences. It is recommended that businesses seek the advice of a licensed attorney to ensure compliance with all legal requirements.