Illinois corporation annual report and franchise tax

The short answer

Every Illinois corporation files an annual report with the Illinois Secretary of State on Form BCA 14.05, every year. It is due before the first day of the corporation’s anniversary month (the month it was incorporated), and it can be filed during the 60 days before that date. The filing fee is $75.

The franchise tax

The franchise tax is paid together with the annual report. Illinois corporations pay it; LLCs do not.

The franchise tax is 1/10 of 1 percent (0.1%) of the corporation’s paid-in capital allocated to Illinois. A corporation whose business and property are entirely in Illinois uses its full paid-in capital.

Since January 1, 2025, the first $10,000 of franchise tax liability is exempt. In plain terms, a corporation with $10 million or less of Illinois paid-in capital owes no franchise tax beyond the $75 report fee. Most one-person and small corporations owe only the $75.

How to file, step by step

1. Gather the details. The report asks for the corporation’s officers and directors, its registered agent and registered office, and its paid-in capital and shares information.
2. File inside the window. File during the 60 days before the first day of your anniversary month.
3. File online or by mail. File online through the Illinois Secretary of State’s website, or by mail on the paper form.
4. Pay the $75 fee and any franchise tax due, and keep the confirmation with your corporate records.

Filing late adds penalties and interest, and a corporation that stops filing can be administratively dissolved by the Secretary of State. If that has happened, see how to reinstate an Illinois LLC or corporation.

LLC vs. corporation annual report

For the LLC version, see the Illinois LLC annual report guide.

FAQ

Does an S corporation file this report? Yes. An S corporation files the same report; electing S status for taxes does not change the Secretary of State filing.

Will my small corporation owe franchise tax? Most one-person and small corporations owe only the $75. A corporation with $10 million or less of Illinois paid-in capital owes no franchise tax beyond the report fee.

When is the report due? Before the first day of the month the corporation was incorporated, with a 60-day filing window before that date.

What happens if I file late? Penalties and interest are added. A corporation that stops filing can be administratively dissolved.

Can I file on paper? Yes. You can file online or by mail on the paper form.

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