Business & Work

The name must be unique. No other corporation or LLC can have the same name. The name must not contain the word or words "democrat," "democratic," "republican" or any other name of a political party A person or business involved in a court case in a role like plaintiff, petitioner, defendant, respondent, or intervenor. without the consent When someone gives permission for someone else to do something of that party.   

If the name indicates that the entity may have been formed for a purpose not authorized under the statute, such as a for-profit purpose, then the letters "NFP" must be at the end of the name. 

You can check to see if the name you want is available by using the Secretary of State’s website. You can also call to confirm it complies with any of the additional requirements by calling the Secretary of State’s office in Springfield.  

If you want to reserve a name for your nonprofit, you can complete an Application for Reservation of Name with the Illinois Secretary of State.

As with any Illinois entity, you must appoint a registered agent The person who receives notice of legal actions when a corporation is sued  for your organization. The registered agent is the person or organization who agrees to accept legal notices on behalf of your not-for-profit. The registered agent must have a registered office in Illinois that is not a P.O. Box Post office box, an individual box for mail at a post office . 

The registered agent can be a person who is part of your organization or a third-party A person or business involved in a court case in a role like plaintiff, petitioner, defendant, respondent, or intervenor. service provider. A third-party registered agent can help you coordinate the annual filing process for a nominal fee. 

In Illinois, each nonprofit is governed by a board of directors. The board must have at least three members. Directors do not need to be Illinois residents.

The initial board of directors is appointed by the incorporator of the nonprofit. They are listed directly on the articles of incorporation.   

To qualify as a nonprofit, your organization must have a not-for-profit purpose that is allowed by the Illinois Secretary of State. Examples of allowable general purposes include:

• Charitable,
• Benevolent,
• Educational,
• Religious,
• Civic, and
• Scientific.

A full list of allowable purposes can be found in the Illinois Secretary of State's Guide for Organizing Not-for-Profit Corporations. 

In addition to the general purpose, your organization will also need to describe its purpose more specifically. Examples include: 

• Providing books to children in low-income households,
• Helping maintain public buildings or monuments,
• Fighting prejudice and discrimination through educating local business leaders, and
• Defending human and civil rights.  

Create the organization by filing your articles of incorporation with the Illinois Secretary of State (Form NFP 102.10).

You can file online here.

If you plan to apply for federal tax-exempt status, you will need to include more information about your corporation’s purpose in the “Other Provisions” section of the form. The language you include needs to meet the requirements of the Internal Revenue Service (IRS). Learn more about these requirements by contacting the IRS, reviewing IRS Publication 557, or asking an attorney.

After filing your articles of incorporation, you may need to complete additional filings related to federal income tax, state income tax, or state sales tax. Learn more about these additional filings from the Illinois Secretary of State's Guide to Organizing Not-for-Profit Corporations. 

Certain charitable organizations also need to register with the Illinois Attorney General. Learn more about filing and reporting requirements through the Illinois Attorney General's Office. If your organization is planning to ask for donations in other states, you may also need to complete a charitable solicitation registration in those states.  

Bylaws are the rules for how the organization will operate. Some of the rules that bylaws cover include:

• Who has the power to make decisions,
• The process for making decisions,
• The relationships between all the people involved in the organization such as officers, board members, and staff,
• How many people will be on the board of directors,
• How the board of directors will be chosen,
• How long the board of directors members will serve Giving court documents to someone ,
• How to fill a spot on the board of directors if someone leaves,
• How to solve disagreements among the board members, and
• How to be sure that decisions and actions of the organization are not the legal responsibility of only a few people.

You should develop bylaws specifically for your organization. It is not a good idea to use bylaws that you get from another organization or find on the internet. It is best to have a lawyer Someone who represents clients in courts or who gives legal advice write the bylaws to make sure that they follow state and federal law. Learn more in this guide from the Illinois Secretary of State.

As you operate the organization and make decisions, remember to document those meetings and actions along the way. Board meetings should be called using the notice procedures included in your bylaws. Board votes should meet the required majority to approve matters or take certain actions. Board meetings should also be documented in written summaries called minutes.

Each year, your organization will need to make certain filings with state organizations. Your organization will also need to file annual federal and state tax returns. Learn more about annual reporting requirements.