Find news, events, articles, videos, and more that answer your questions and keep you up-to-date.
Visit Resource Center
Stay informed on compliance updates
S corporation is a tax status, not a type of corporation. Therefore, the rules governing the formation of an S corporation in Illinois are the same as those that apply to any other for-profit corporation.
CT Tip: It is essential that there be only one class of stock (although there can be difference voting rights) provided for in the Articles of Incorporation. Having more than one class of stock precludes an S corporation election.
For information on these general incorporation requirements, see our article: Incorporating in Illinois.
Illinois honors the federal S corporation election and does not require a separate election at the state level.
One of the major advantages of operating as an S corporation is that an S corp is a pass-through entity for federal tax purposes. This means that there is no income tax imposed at the corporate level—income is taxed only on the shareholders returns. Illinois follows this rule with regard to Illinois income tax. However, Illinois does impose an entity-level tax: the 1.5% Personal Property Tax Replacement Income Tax.
Form an S Corporation in Illinois today.
More in Formation Services