Incorporating Your Own Business in Illinois

If you are like most small business owners, you’re probably wondering whether or not to incorporate your business. You have probably been told about the tax benefits of such a move by your accountant. But there are other benefits of incorporating as well.

Forming a corporation is like forming a person. It is its own entity. It can be sued. But if your business is sued and is incorporated, you can’t personally be sued. Get it?

So if you decide to incorporate in Illinois, and want to avoid legal fees or online fees, do it yourself. You can do it! It just involves taking a few simple steps.

The first step is to make to get a name for your corporation. All corporations in Illinois must contain the following words in their name: Corporation, Company, Incorporated, or Limited; or an abbreviation of these words.

Once you have figured out a name for your new company, call the Department of Business Services in Springfield at 217-782-9522, and make sure the name is available. Unlike individual businesses, corporations in Illinois cannot operate under the same name as another corporation. However, if there is a “Sam’s Donut Shack, Inc.,” you can have a “Sam’s Donut Shack, Co.”

Okay. The name is available and you’re ready to incorporate. Go to the Illinois Secretary of State site on the internet and download “Articles of Incorporation,” from the Department of Business Services. This is also known as form BCA 2.10. This form needs to be completed as follows:

1. Corporate Name. Pretty self-explanatory. Type or write your Corporate Name on this line.

2. Initial Registered Agent and Office. This is the name of the person who will receive mail for the corporation. Put your name and address on these lines. Be advised that you cannot use a P.O. Box; however, a suite number is available. Also be advised that this information is a matter of public record, so if you don’t want your address as a matter of public record, rent a “mailbox” at one of those mailbox stores that offer suite numbers. A suite number is acceptable to use on the form.