How to Start a
Nonprofit in Illinois

An Illinois nonprofit corporation is a business formed for a purpose other than profit, typically for a public good rather than a corporate interest. Illinois nonprofit corporations are formed by filing Nonprofit Articles of Incorporation with the Illinois Secretary of State. Many nonprofit organizations qualify for tax-exempt status, which requires a separate application with the IRS.

The easiest way to form your Illinois nonprofit is to hire us do it for you. But, if you choose to register your business yourself, follow these 6 steps:

1. Get an Illinois Registered Agent
2. Choose a Name for Your Illinois Nonprofit
3. File Illinois Nonprofit Articles of Incorporation
4. Adopt Corporate Bylaws
5. Obtain an EIN
6. Apply for Nonprofit Status with the IRS
7. File a BOI Report

1. Get an Illinois Registered Agent

You’re required to have an Illinois Registered Agent when you form a nonprofit corporation in Illinois. This person or entity must be available during normal business hours, and be physically located in Illinois. You can ask a friend or family member who lives in Illinois to be your registered agent. But unless this person is home eight hours a day / five days a week, it’s not a great idea.

Many people choose to go with a registered agent service, like us, because being here for you is our job.

Get Registered Agent Service

2. Choose A Name for Your Illinois Nonprofit

Choosing a name can be simple, but there are important restrictions to be aware of before you file your paperwork with the state.

• Your name must contain: “Corporation,” “Company,” “Incorporated,” “Limited,” “Corp.,” “Co.,” “Inc.,” or “Ltd.”
• Your name cannot contain words that might associate it with any political party, like “Republican,” “Democrat,” or “Democratic.”
• If your name implies that your corporation has been organized for a purpose other than what’s acceptable by the state, it must end with the letters “NFP.”
• Your name cannot be too similar to the name of any existing corporation or LLC (foreign or domestic).

It’s a good idea to type your name into the Illinois business database to make sure it’s not already taken, or too similar to an existing entity.

3. File Illinois Nonprofit Articles of Incorporation

Filing Nonprofit Articles of Incorporation will officially register your nonprofit with the state. You’ll have to complete 6 sections:

• Corporate Name

Here you’ll simply put the name of your corporation.

• Registered Agent and Office

You’ll need to include the name of your registered agent, as well as your registered agent’s address in Illinois. (Note that this must be a physical address, not a P.O. Box.)

• Directors

Illinois requires all nonprofits to include the names and addresses of at least three directors, and no more than seven. Your directors do not have to be members of your corporation, or even residents of Illinois. But they will comprise your board of directors, which oversees your organization.

• Purpose

Nonprofits must exist to serve a community good, rather than the organization itself. This typically refers to charities, or educational or religious institutions. Ultimately, the purpose of an Illinois nonprofit must be covered by 805 ILCS 105/103.05.

• Other Provisions

If you intend to apply for tax-exempt status through the IRS, you should include a statement to that effect here. In some cases, you’ll need to specify your company’s financial plans and distributions (in case of dissolution, for example). What you include should coincide with the specifications of the IRS Code.

Note that if you include additional provisions, you’ll have to do so in a separate document and must file your articles via mail (not online).

• Incorporator(s)

This is simply the person who signs and files these articles on behalf of your nonprofit. Your incorporator does not need to be someone within your company, or someone who sits on your board of directors.

How do I submit my nonprofit articles of incorporation?

If you don’t intend to apply for federal nonprofit status with the IRS, you may register your Illinois nonprofit online. Otherwise, you’ll have to submit your paperwork via mail.

Secretary of State
Department of Business Services
501 S. Second St., Rm. 350
Springfield, IL 62756

How much does it cost to file nonprofit articles of incorporation?

The state charges a $50 fee for filing nonprofit articles. For 24-hour expedited service, you’ll have to pay an additional $25 fee.

Note: expedited filings must be made in person.

4. Adopt Corporate Bylaws

All nonprofit corporations formed in Illinois are required to adopt corporate bylaws during their first organizational meeting after incorporation (805 ILCS 105/102.25). Bylaws are like rules for your company. They govern everything from your company’s organizational structure to the way it handles financial allocations.

When you form your company with Illinois Registered Office, we’ll give you a free template you can use to draft your bylaws.

5. Obtain an EIN

Getting an Employer Identification Number (EIN) from the IRS is required for most businesses that register with the state. This is because you won’t be able to open a bank account for your business without one.

You can apply for an EIN through the IRS directly, or we can do it for you when we form your business (just click the box for “Tax ID” at checkout).

6. Apply for Nonprofit Status with the IRS

Tax-exempt status doesn’t happen automatically—it’s something you have to apply for through the IRS after forming your nonprofit. Most nonprofit corporations in the U.S. qualify for 501(c)(3) tax-exempt status, but you’ll need to make sure your company fits the specific qualifications for this status before you apply. (Read more about the different tax-exempt statuses below.)

In most cases, you’ll need to submit an Application for Recognition of Exemption to the IRS, along with any required supporting materials. (This includes any “other provisions” you may have submitted with your Articles of Incorporation.)

7. File a BOI Report

As of January 1, 2024, a Beneficial Ownership Information report (BOI) is a requirement mandated by the Corporate Transparency Act (CTA). During the 2024 calendar year, the majority of corporations registered in the U.S., including many nonprofits, must file a BOI report within 90 days of formation, and from January 1, 2025 on they’ll have 30 days. (Corporations formed before 2024 have until January 1, 2025 to file.) This report is free and must be completed online through the Financial Crimes Enforcement Network (FinCEN). Any updates to your BOI must also be made within 30 days of the relevant changes. Your BOI report will NOT be made public.

When completing your report, you must provide basic information about your nonprofit, like its legal name (along with any DBA names), jurisdiction of formation, and tax ID. You must also provide the following information for your beneficial owner and company applicant:

• Full legal name
• Date of birth
• Residential address
• Valid photo ID

A “beneficial owner” is anyone who has a substantial amount of control over your nonprofit. This could include your CEO or board members. A “company applicant” is the person who formed your company or directed it to be formed (if different). Note that any company formed before 2024 does NOT need to list a company applicant.

It’s a lot, right? The good news is we can file your BOI report for you for only $9.