How much does it cost to start a nonprofit in Illinois?

The filing fee is $50 (plus up to $4 processing fee). Illinois is moderately priced. You'll also need to file with the county recorder of deeds within 15 days (varies by county).

How long does it take to form a nonprofit in Illinois?

Standard processing takes about 10 business days. Expedited processing is available for an additional $25 fee (1 business day).

Does Illinois require a separate state tax exemption application?

For income tax: No, it's automatic upon 501(c)(3) approval. For sales tax: Yes, you must file Form STAX-1 with IDOR. Processing takes up to 90 days and is not retroactive.

How many board members do I need for an Illinois nonprofit?

Illinois requires minimum 3 directors initially (up to 7 named in articles, but board can expand via bylaws). The IRS requires 3 unrelated directors for 501(c)(3) approval.

Does Illinois require charitable solicitation registration?

Yes. Illinois requires charitable solicitation registration with the Attorney General. Religious organizations are NOT automatically exempt (unlike most states). Registration is $15 and must be renewed annually.

How to Start a Nonprofit in Illinois (2026 Guide)

Want hands-on help with this?

The Nonprofit Startup Navigator guides you through every step of Illinois nonprofit formation — from incorporation to 501(c)(3) determination. We handle the documents, governance setup, and IRS application so you can focus on your mission.

How to Start a Nonprofit in Illinois

Illinois has distinctive nonprofit requirements—including a unique 33-purpose selection requirement and mandatory charitable solicitation registration (even for religious organizations). Here's your comprehensive guide to forming an Illinois nonprofit.

Formation Requirements

Filing Office

The Illinois Secretary of State, Department of Business Services handles nonprofit incorporations. You can file online, by mail, or in person.

Filing Fees:

Base filing fee: $50
Processing fee: up to $4
Expedited (24-hour processing): Additional $25

Processing Time: Standard processing takes about 10 business days. Online filing is recommended for faster processing.

The 33 Allowable Purposes Requirement

Illinois uniquely requires nonprofits to select from a list of 33 statutory purposes defined in 805 ILCS 105/103.05(a). Your Articles must explicitly state which purpose(s) apply. Qualifying purposes include:

Charitable
Educational
Religious
Scientific
Literary
Benevolent
Fraternal
And 26 others defined in statute

This requirement can be confusing for first-time incorporators. Your Articles must clearly identify which statutory purposes your organization will pursue.

Articles of Incorporation

File Form NFP 102.10 (Not-for-Profit Articles of Incorporation) with these required elements:

Corporate name
Selection of purposes from the 33 statutory list
Names of 3-7 initial directors
Registered office address in Illinois (physical, not P.O. box)
Incorporator name and address
501(c)(3) purpose and dissolution language if seeking federal exemption

Critical Illinois Requirement: Within 15 days of receiving the Certificate of Incorporation from the Secretary of State, you must file a copy of both the Certificate and Articles with the Office of the Recorder of Deeds in the county where your registered office is located. This is an often-overlooked step that's legally required.

Name Requirements

Your name must be distinguishable from other registered Illinois organizations. No mandatory corporate designator is required (unlike many states), but including "Inc." or "Corp." helps clarify your nonprofit status.

Optional: Reserve your name for 90 days by filing Form NFP-104.10 ($25 fee).

Governance Requirements

Board of Directors

Illinois requires 3-7 directors initially (named in the Articles), but your board can expand through bylaws. Directors must be individuals 18 and older. No Illinois residency requirement.

Officers

Minimum required officers:

President
Secretary
Treasurer

Additional officers (Vice President, etc.) are optional but common.

Registered Agent

You must appoint and maintain a registered agent who is an Illinois resident with an Illinois street address. This person receives legal documents on behalf of your organization. The address is public record.

Bylaws

Bylaws are required by law but not filed with the Secretary of State. Your bylaws should address:

Board structure and composition
Officer roles and election procedures
Meeting frequency and notice requirements
Voting procedures and quorum
Conflict of interest policies
Amendment procedures
Committee structure
Dissolution and asset distribution

Illinois Tax Exemption

State Income Tax

Automatic exemption upon federal 501(c)(3) approval. No separate Illinois state application required. Once the IRS approves your status, you're automatically exempt from Illinois corporate income tax.

Sales Tax Exemption

Illinois sales tax is 6.25% (plus local taxes). Sales tax exemption is NOT automatic with federal 501(c)(3) status.

Required: File Form STAX-1 (Application for Sales Tax Exemption) with the Illinois Department of Revenue.

Important Limitations:

Processing takes up to 90 days
Exemption is NOT retroactive (effective from approval date, not from your filing date)
You must be organized and operated exclusively for charitable, religious, educational, or governmental purposes
You must receive a Sales Tax Exemption Number (e-number)

Property Tax Exemption

Property tax exemption is available for religious, charitable, and educational organizations. Apply to the County Board of Review in the county where your property is located. The County Board reviews and forwards to the Illinois Department of Revenue for final decision. This is not automatic and requires separate application.

Annual Attorney General Report

All Illinois nonprofits must file Form AG990-IL with the Illinois Attorney General Charitable Trust and Solicitations Bureau within six months after the organization's fiscal year end.

Important: Form AG990-IL is BOTH the charitable solicitation renewal AND the annual report to the Attorney General. It's a single filing that serves dual purposes.

Ongoing Compliance

No Secretary of State Annual Report

Illinois nonprofits do NOT file annual reports with the Secretary of State (unlike most states). This is unusual but reduces your compliance burden at the state level.

Attorney General Annual Report (Form AG990-IL)

Due Date: Six months after fiscal year end

Fee: $15

Required Attachments:

IRS Form 990 (or 990-EZ, 990-PF)
Financial statements (reviewed if contributions $300K-$500K; audited if over $500K)
Form IFC for each professional fundraiser campaign

Late Fee: $100 mandatory if filed late without requesting extension

Late Filing Extension: 60-day extension available if requested

Charitable Solicitation Registration

All nonprofits must register with the Illinois Attorney General unless exempt.

Exemptions:

Religious organizations (but must apply for exemption; not automatic)
Educational institutions (Illinois public universities, accredited schools)
Libraries established under Illinois law
Fraternal/alumni organizations soliciting only from members
Veterans' organizations chartered under federal law
Organizations receiving under $15,000 in contributions

Registration:

Form CO-1 (Charitable Organization Registration Statement)
Form CO-2 (Financial Information)
Fee: $15
Renewal: Annual with Form AG990-IL

Key Deadlines and Timeline

Formation Timeline:

Verify name availability
Prepare Articles of Incorporation (select 33 purposes)
File with Secretary of State ($50 + $4 fee)
Within 15 days: File with County Recorder of Deeds
Establish bylaws and hold board meeting
Obtain EIN from IRS
Apply for 501(c)(3) status

Ongoing Annual Deadlines:

6 months after fiscal year end: Form AG990-IL to Attorney General ($15)
Within 30 days of registration change: Notify Attorney General
15th of 5th month after fiscal year end: Form 990 to IRS

Important Considerations

County Recorder Filing is Easy to Miss: Remember the 15-day deadline to file with your county recorder. This is a frequently overlooked requirement that's legally required.

Religious Organizations Are Not Auto-Exempt: Unlike most states, Illinois does not automatically exempt religious organizations from charitable solicitation registration. Religious nonprofits must apply for exemption.

$100 Late Fee for AG Report: Missing the Form AG990-IL deadline without requesting extension results in a mandatory $100 late fee. This is a significant penalty. Always request extension if needed.

33 Purposes Requirement: Take time to carefully select from Illinois's 33 statutory purposes. This requirement is unique and easy to get wrong.

Sales Tax Exemption Not Retroactive: Sales tax exemption approval is not retroactive. You'll pay sales tax on purchases until your exemption is approved. Plan accordingly.

Dual Filing Reality: In Illinois, the Attorney General is your primary ongoing compliance agency, not the Secretary of State. You'll file your annual reports with the AG, not the SOS.

Illinois nonprofit formation involves specific requirements like the 33-purpose selection and mandatory charitable solicitation registration. However, the process is well-documented and manageable once you understand the state's unique requirements.

For expert guidance through Illinois's distinctive requirements, consider the Nonprofit Startup Navigator for hands-on consulting. Or explore the complete formation guide for self-service formation.

Questions about your specific situation? Schedule an Advisory Call with our Illinois nonprofit experts.

IH

Ian Wylie Hedrick

· Founder, Wylie Advisory

Ian has spent over a decade in the nonprofit sector — from serving as an AmeriCorps member to founding a fiscally sponsored urban farming program through the Public Health Institute of Metropolitan Chicago to consulting a private foundation with eight-figure assets on new program creation. He started Wylie Advisory to make nonprofit formation and operations expertise accessible to every founder.

More about Ian →