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May 15, 2025.
How to Start a Nonprofit in Illinois:
Registration, Filings, and Annual Reports
From incorporation to annual filings—your step-by-step guide to staying compliant.
Every state has its own requirements for forming and maintaining a nonprofit. In Illinois, the process includes initial registration, tax-exempt applications, and recurring annual filings. Understanding these steps upfront helps ensure your organization remains compliant and in good standing.
Understanding the Basics
Before focusing on Illinois-specific filings, every nonprofit must complete a few foundational steps. These ensure your organization is legally recognized, properly structured, and positioned to apply for tax-exempt status.
Name your organization
Select a name that is distinguishable from other registered entities and follows state naming rules. Checking availability through the Secretary of State helps avoid delays in the registration process. Illinois Secretary of State’s Name Search
Choose your board of directors
Nonprofits are governed by a board that carries fiduciary responsibility. At minimum, you’ll need one incorporator to file your Articles of Incorporation, three directors to guide oversight, and an officer (often a secretary) to maintain records. Illinois does not require directors or officers to reside in the state.
Define your charitable purpose
Your purpose must align with IRS requirements for tax-exempt status—commonly charitable, educational, religious, or scientific. It must serve the public rather than private individuals or political interests. A clear purpose statement is essential for both incorporation and federal exemption applications.
Appoint a registered agent
A registered agent receives official communications, such as legal notices and government filings, on behalf of your nonprofit. This can be an individual or a business entity, but they must be based in Illinois or authorized to operate there.
How to register a nonprofit in the state of Illinois?
You’ll need to take the formal steps that establish your nonprofit as a recognized entity in Illinois:
File Articles of Incorporation with the Illinois Secretary of State
To legally incorporate your organization in Illinois, you must file the Articles of Incorporation with the Secretary of State. In Illinois, Form NFP 102.10 serves as the official document to incorporate a not-for-profit organization under the Illinois Not-For-Profit Corporation Act of 1986.
There is no specific deadline; however, the form should be filed before commencing legal operations or applying for tax exemption.
Filing Methods
- Online: Submit via the Illinois Secretary of State's online portal.
- Mail: Send the completed form to the Secretary of State's office.
Secretary of State,
Corporations Division, 501 S. Second St.
Room 350, Springfield, IL 62756
| Form | Due date | Fee | Filing Method |
|---|---|---|---|
|
Form NFP 102.10 (Articles of Incorporation) |
No specific due date, file before starting the organization |
$50 |
Paper filing and e-filing options are available. |
Apply for an Employer Identification Number (EIN)
Nonprofit organizations are required to obtain an Employer Identification Number (EIN)from the IRS. This will serve as the organization's federal tax identification number and is essential for conducting legal and financial activities.
Although there is no specific deadline to apply, it is recommended to obtain an EIN as early as possible, as it is necessary for opening a bank account, applying for tax-exempt status, and filing required forms with the IRS.
| Form | Fee | Filing Method |
|---|---|---|
|
Form SS-4 (Application for Employer Identification Number (EIN)) |
Free |
Online via IRS EIN Assistant |
Register for Illinois state tax IDs and accounts
To qualify for a sales tax exemption, your nonprofit must apply for an Illinois State Tax Identification Number through Form REG-1 with the Illinois Department of Revenue.
Filing Methods
- Online: Register via the Illinois State’s online portal.
- Mail: Send the completed form along with the supporting documents to the Illinois Department of Revenue
Illinois Department of Revenue (IDOR),
Sales Tax Exemption Section,
P.O. Box 19014, Springfield, IL 62794
| Form | Fee | Filing Method |
|---|---|---|
|
Form REG-1 (Illinois Business Registration Application) |
Fees vary based on the tax accounts required |
Mail or Online |
Hold your organizational meeting and adopt bylaws
After incorporation, your nonprofit must hold its initial organizational meeting to establish governance and ensure legal compliance. Make sure the following points are addressed during the meeting:
- Approve the bylaws - These outline how your nonprofit will operate (e.g., meetings, voting, officer roles).
- Elect governing bodies - Typically includes President, Secretary, and Treasurer.
- Adopt policies - Such as a conflict-of-interest policy, required for 501(c)(3) status.
- Authorize filings - Approve resolutions to apply for IRS and state tax exemptions.
Note: Document all decisions in meeting minutes, signed by the secretary.
How to apply for tax exemption and solicitation in Illinois?
To operate legally in Illinois, nonprofit organizations must meet both tax exemption and charitable solicitation requirements. Here's a streamlined process for applying for both:
Federal tax exemption
To obtain a state tax exemption, your nonprofit must first apply with the IRS. The required forms depend on the size and type of your organization:
- Form 1023: For Section 501(c)(3) organizations with gross receipts over $50,000 or total assets over $250,000.
- Form 1023-EZ: Also applies to Section 501(c)(3) organizations–typically smaller nonprofits with gross receipts of $50,000 or less and assets under $250,000.
- Form 1024 or 1024-A: Organizations seeking tax-exemption under IRS sections other than 501(c)(3).
| Form | Due date | Fee | Filing Method |
|---|---|---|---|
|
IRS Form 1023 or 1023-EZ (For Section 501(c)(3) organizations) |
Within 27 months of forming the organization. |
Varies from $275 to $600 |
Online via Pay.gov |
|
IRS Form 1024 or 1024-A (For other organizations) |
State tax exemption
Once your nonprofit obtains federal tax-exempt status, it is automatically exempt from Illinois state income tax. You do not need to file a separate application for income tax exemption.
However, you must apply for a Sales Tax Exemption separately through Form STAX-1 via MyTax Illinois.
Charitable Organization Registration
Before you can solicit donations in Illinois, you must register with the Illinois Attorney General’s Charitable Trust Bureau. This ensures your nonprofit complies with Illinois fundraising laws and is trustworthy to potential donors.
Form CO-1 is used to register your organization as a charitable entity in Illinois. It collects information about your nonprofit’s finances, leadership, and charitable purpose.
Filing Methods
- Online: Submit through the Illinois Attorney General’s online portal.
- Mail: Send the completed form to the Charitable Trust Bureau, Office of the Illinois Attorney General.
Office of the Illinois Attorney General
Charitable Trust & Solicitations Bureau
115 S. LaSalle St.
Chicago, IL 60603
What are the annual tax filing requirements for nonprofits in Illinois?
Nonprofits in Illinois must comply with both federal and state filing requirements to maintain their tax-exempt status and remain in good standing. Here's an overview of the key filing obligations:
Federal tax filing (IRS)
Even though your nonprofit may be exempt from paying federal income taxes under Section 501(c)(3), it still has annual filing requirements with the IRS:
-
Forms: The organization must file 990 series forms annually to stay compliant.
- Form 990-N: For smaller organizations with gross receipts $50,000 or less.
- Form 990-EZ: For organizations with gross receipts under $200,000 and total assets under $500,000.
- Form 990: For organizations with gross receipts ≥ $200,000 and total assets ≥ $500,000.
- Form 990-PF: For private foundations.
- Form 990-T: For organizations with any unrelated business income (UBI) of $1,000 or more.
- Due Date: The return is due on the 15th day of the 5th month after the fiscal year ends (for example, May 15 for a December 31 year-end).
- Filing Method: The IRS mandates e-filing for these forms.
Illinois State Tax Filing
While Illinois does not require a separate annual state income tax return for nonprofit organizations that are federally exempt, there are other important filings:
-
Annual Financial Report (AG990-IL) with the Illinois Attorney General
- All registered charitable organizations must file Form AG990-IL each year, along with supporting financial documents.
- Larger organizations may also need to submit audited financial statements.
- This filing confirms the nonprofit’s financial accountability and keeps its solicitation registration active.
-
Form IL-990-T
- Required if your organization has unrelated business income subject to Illinois income tax.
- The IL-990-T generally follows the same due date as the federal 990-T.
-
Due date
- Both AG990-IL and IL-990-T are generally due at the same time as their federal counterparts.
-
Filing Method
- Both Form AG990-IL and Form IL-990-T can be filed either on paper or electronically.
-
Form AG990-IL
- Online: Submit Form AG990-IL through the Illinois Attorney General’s online portal.
- Mail: Send the completed form to the Charitable Trust Bureau, Office of the Illinois Attorney General
Office of the Attorney General,
Charitable Trust Bureau Attn: Annual Report Section,
100 West Randolph Street,
11th Floor, Chicago, IL 60601-3175 -
Form IL-990-T
- Online: Submit Form IL-990-T through the Illinois Department of Revenue’s online portal.
- Mail: Send the completed form to the Illinois Department of Revenue
-
If payment is enclosed, mail to:
PO BOX 19053, Springfield, IL 62794-9053 -
If payment is not enclosed, mail to:
PO BOX 19009, Springfield, IL 62794-9009
Ready to e-file the 990 Form with the IRS?
File with confidence–you are backed by the Tax990 Commitment.
Frequently Asked Questions
Are there any additional requirements for Form CO-1?
Along with Form CO-1, you may need to file:
- Form CO-2: To report your financial information.
- Form CO-2: To report your financial information.
What are the requirements for submitting Form AG990-IL?
- The completed Form AG‑990 IL, with all applicable fields filled in and two officer signatures (or one trustee).
-
A $15 filing fee, payable to ‘Illinois Charity Bureau Fund,’ if your organization meets any one of:
- Gross contributions > $15,000
- Assets > $25,000
- Trust with revenue or assets > $25,000
-
Your submission must include:
- Form AG990‑IL, fully completed and signed by two officers or trustees
- IRS return (Form 990, 990-EZ, etc.)
- Audited financials if contributions > $300,000 or used paid fundraisers
- Form IFC if professional fundraisers were used
Can I reserve a name for my nonprofit before filing?
Yes, you can reserve a name with the Illinois Secretary of State for 90 days by filing a Name Reservation Application and paying a $25 fee.
Do I need a registered agent for my nonprofit in Illinois?
Yes, every nonprofit must appoint a registered agent with a physical address in Illinois to receive legal documents and state correspondence.
Can I operate my nonprofit in other states after forming it in Illinois?
Yes, but you must register as a foreign nonprofit in any additional states where you plan to operate or solicit donations.
What is the difference between 501(c)(3) and Illinois state nonprofit status?
501(c)(3) refers to your federal tax-exempt status from the IRS. Illinois state nonprofit status refers to being legally formed and in good standing with the Secretary of State.
Article Sources:
- Form NFP 102.10 - Nonprofit corporation
- Form CO-1 - Charitable Organization Registration Statement
- Form IL-990-T - Unrelated Business in Illinois has to file
- Form AG990-IL - Illinois Charitable Organization annual report