Illinois Nonprofit Incorporation Guide

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Quick Facts

A

Pre-Filing Checklist

1. 1.
   Name check & reservation (optional): Confirm availability; you may reserve a name for 90 days (Form NFP 104.10, $25).
2. 2.
   Directors: Illinois requires at least three directors; list 3-7 initial directors in the Articles. No IL residency requirement.
3. 3.
   Registered agent & office: Appoint an Illinois registered agent and provide a physical street address for the registered office (no P.O. Box).
4. 4.
   Purpose under the IL NFP Act: Draft a purpose that fits one or more statutory purposes (e.g., charitable, educational, religious, etc.).
5. 5.
   IRS clauses plan (if 501(c)(3)): Prepare an “Other Provisions” article/attachment with the IRS organizational test wording, inurement/political limits, and dissolution clause for assets to another 501(c)(3) or government.

B

Prepare the Articles of Incorporation

Complete Form NFP 102.10 (or use online wizard) with the following information:

1. 1.
   Corporate name: May include Corp., Co., Inc., or similar designation.
2. 2.
   Registered agent & registered office: Illinois street address required (no P.O. Box).
3. 3.
   Purpose(s): Must fit 805 ILCS 105/103.05 statutory purposes (charitable, educational, religious, etc.).
4. 4.
   Initial directors: Minimum three; list names and addresses (3-7 allowed on the form).
5. 5.
   Incorporator: Natural person, 18 or older, with signature.
6. 6.
   Other/IRS provisions: Place in “Other Provisions” section or attachment:

   • • Organizational test (operated exclusively for 501(c)(3) purposes)
   • • No private inurement clause
   • • Limits on lobbying/partisan political activity
   • • Asset dedication upon dissolution to another 501(c)(3) or government

C

File the Articles

1. 1.
   File online or by mail/in-person: Use the SOS online system or submit the PDF NFP 102.10.
2. 2.
   Fees:

   • • Standard filing: $50
   • • Paper expedite: +$25 for 24-hour in-person service
   • • Online expedite: $75 total for 24-hour service
3. 3.
   Output: You'll receive filing confirmation and a stamped copy/receipt you'll need for banking, IRS, AG registration, etc.

D

Post-Filing Tasks

1. 1.
   EIN: Apply with the IRS (Form SS-4).
2. 2.
   Organizational meeting: Adopt bylaws; appoint directors/officers; policies; fiscal year; banking resolution.
3. 3.
   Charitable registration (AG): Register before solicitation (CO-1 plus attachments) or if holding charitable assets; then file AG990-IL annually (due within 6 months after fiscal year end).
4. 4.
   SOS annual report: File NFP 114.05 ($10) each year before the first day of your anniversary month.
5. 5.
   Sales tax exemption: After IRS recognition (typically), apply for an Illinois sales-tax E-number via MyTax Illinois or Form STAX-1.
6. 6.
   State corporate income tax: With an IRS determination letter, you're exempt from Illinois income tax (no reports due). If you have unrelated business income, file IL-990-T.
7. 7.
   Local licenses & banking: Open a bank account (EIN + filed Articles + bylaws); obtain any local permits as needed.

Resources & Forms

• Articles of Incorporation: Form NFP 102.10 (PDF)
• Online Filing System: SOS Business Services
• Name Reservation: Form NFP 104.10 (90 days, $25)
• Annual Report: Form NFP 114.05 ($10)
• Guide for Organizing: SOS Guide C-165
• Charitable Registration: AG Charitable Trust Bureau (CO-1, AG990-IL)
• Sales Tax Exemption: MyTax Illinois / Form STAX-1

Notes & Best Practices

• Keep your Illinois purpose clear and aligned to the statutory list; then place IRS 501(c)(3) clauses in the “Other Provisions/Attachment” section
• Plan for at least three directors; list them in the Articles (3-7 allowed on the form)
• Calendar your annual reports: SOS report (before your anniversary month) and AG report (AG990-IL within 6 months after fiscal year end)
• Illinois expects registration before soliciting funds (and registration is also triggered by holding charitable assets)
• Apply for your E-number (sales tax exemption) after receiving IRS recognition via MyTax Illinois or Form STAX-1
• Income tax exemption is automatic with IRS determination letter (no separate state filing needed unless you have UBIT)
• The online filing system offers 24-hour expedite for $75 total (faster than paper expedite)