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There are more than 1.2 million small businesses operating in the state of Illinois. These businesses employ 2.5 million people, which is 45.1% of the state’s workforce and nearly 20% of the entire population. Small businesses account for 99.6% of the state’s private enterprise, making them a vital part of Illinois’s economy.
Illinois’ government has had some fiscal trouble, which has not gone unnoticed by the business community. There are some other challenges facing the state as well. The Illinois economy grew at a slow rate of 2.1% in 2018, significantly lower than the national growth rate of 3.4%. Moreover, the state’s population has declined by roughly 150,000 people since the 2015 Census. However, there are bright spots for Illinois as well: Per-capita personal income has returned to pre-recession levels of $53,712, which is 6% higher than the national average; the unemployment rate is 4.3%, which is low enough to be healthy but higher than the national average, making for a less competitive labor market; and access to capital remains strong.
Despite the very real challenges facing Illinois, small business owners continue to experience growth and remain optimistic for the future. To find out more about the realities of running a small business in the Prairie State, Business News Daily connected with some entrepreneurs who live and work in Illinois.
Business taxes in Illinois
llinois is known for high business taxes, with a top corporate income tax rate of 9.5%. That makes it the 14th most expensive state in corporate income taxes. In addition, its state sales tax stands at 6.25%, which is on the high end of average. However, with the addition of local sales taxes in some areas, especially near Chicago, the overall sales tax burden could be high.
What is Illinois corporate dissolution?
Corporate dissolution in Illinois is the process by which a corporation officially ends its existence within the state. If you are registered to do business in Illinois, dissolving your corporation ends its liabilities to creditors. Under the state’s Business Corporation Act, corporate dissolution requires unanimous and written consent of all shareholders who are entitled to a vote under the company’s organization. It requires the drafting and filing of articles of dissolution. Following the vote to dissolve the corporation, you will still have to collect all of the business’s assets, dispose of corporate properties that will not be distributed amongst shareholders, discharge corporate liabilities and distribute any remaining properties accordingly.
When is a company required to file as a foreign corporation in Illinois?
If your company is registered in another state, you must register it as a foreign entity in Illinois before you can begin conducting any business there. To begin the process, you must file an Application for Authority with Illinois’ secretary of state.