Starting a nonprofit in Illinois follows the same two milestones as anywhere else, forming a state corporation and getting federal 501(c)(3) status, but Illinois adds an annual report, a separate sales-tax exemption, and Attorney General registration before you fundraise. Here is the order Illinois founders should follow.
The Illinois-specific steps
- File Articles of Incorporation (Form NFP 102.10) with the Illinois Secretary of State, including the IRS-required purpose and dissolution language. The filing fee is $50.
- File your Annual Report (Form NFP 114.05) with the Secretary of State each year before your anniversary month, for a $10 fee.
- Get your federal EIN from the IRS. It is free, and you need it before you can apply for tax-exempt status.
- Adopt bylaws and a conflict of interest policy that carry the same charitable purpose and dissolution language as your incorporation documents.
- Apply for federal 501(c)(3) status using Form 1023-EZ or the full Form 1023.
- Handle Illinois taxes. Federal 501(c)(3) status automatically exempts you from Illinois income tax. For sales tax, apply separately to the Department of Revenue using Form STAX-1 to receive a sales-tax exemption E-number, at no charge.
- Register with the Illinois Attorney General's Charitable Trust Bureau using Form CO-1, and Form CO-2 if your organization is under a year old, before soliciting donations.
Illinois fees and timelines
Illinois keeps startup costs low: incorporation is $50 and the annual report is $10. Your main cost is the federal IRS user fee ($275 for the 1023-EZ or $600 for the full Form 1023). Because state fees change, confirm current amounts with the Illinois Secretary of State and Attorney General before filing.
A note on accuracy
State requirements and fees change over time. Use this as a roadmap, then verify current forms and amounts with Illinois's official agencies, or let us confirm them with you on a free call.
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Explore 501(c)(3) Filing →The federal step is the same everywhere
Once your Illinois corporation exists and you have an EIN, the federal 501(c)(3) application is identical to any other state. Most small nonprofits file the 1023-EZ; see our 1023 vs 1023-EZ guide to confirm which fits. For the complete national process, read our step-by-step guide to starting a nonprofit, and our cost breakdown for every fee.
Starting a nonprofit in another state?
The federal steps are the same in all 50 states; only the state incorporation, tax exemption, and charitable registration details differ. See our guides for Pennsylvania, North Carolina, Michigan, or browse all our guides. Not sure where to start? Book a free call and we will map the exact steps and current fees for your state.