How to start a nonprofit in Illinois (2026 step-by-step guide)

How to start a nonprofit in Illinois, step by step

You form a Illinois nonprofit in two big moves. First you create a nonprofit corporation with the state. Then you apply to the IRS for 501(c)(3) tax-exempt status. Most small groups can do both themselves. Here is the whole path in order.

• Pick a clear mission and a name no other Illinois entity is using.
• Recruit at least three directors.
• File your Articles of Incorporation (Form NFP 102.10) with the Illinois Secretary of State.
• Name a registered agent with a physical Illinois address.
• Get a free EIN, adopt bylaws, and hold your first board meeting.
• File Form 1023 or 1023-EZ.
• Register with the Attorney General and apply for your sales tax number.

Step 1: Name your Illinois nonprofit

Your name has to be distinguishable from other entities on record with the Illinois Secretary of State. You can usually check availability through the state's online business search. Pick something clear and memorable, and confirm a matching web address is free before you commit.

Step 2: Appoint your directors and officers

Illinois requires at least three directors. The Not For Profit Corporation Act does not spell out a full slate of officers, but you need at least a secretary, who can certify your bylaws and resolutions. Choose directors who will actually show up, because they are responsible for the organization.

Step 3: File your Articles of Incorporation

This is the step that legally creates your nonprofit. You file Form NFP 102.10, the Articles of Incorporation, with the Illinois Secretary of State, for a $50 fee. The IRS wants specific purpose and dissolution language in this document to grant 501(c)(3) status, so take care with the wording.

Step 4: Name your registered agent

Every Illinois nonprofit names a registered agent and a registered office: a person who lives in Illinois, or a company allowed to do business there, with a physical Illinois address for receiving legal mail. You can be your own agent if you live in Illinois and have a street address there (not a PO box), or hire a commercial agent.

Step 5: Adopt bylaws and hold your first board meeting

Bylaws are your rulebook: how you elect directors, hold meetings, and make decisions. The IRS also expects a conflict-of-interest policy. At your first board meeting, adopt both, appoint officers, and record the minutes. You will be asked for these documents again and again, so keep them in one place.

Step 6: Get your free EIN

An EIN is your nonprofit's federal tax ID, and you need it before you apply to the IRS for exempt status. You get one free and usually right away by applying online through the IRS. Never pay a third-party site for an EIN, because the IRS never charges a fee for one.

Step 7: Apply for 501(c)(3) status with the IRS

This is the federal step, and it is the same wherever you are. Most brand-new small nonprofits qualify for the shorter Form 1023-EZ, which has a $275 user fee. Larger groups file the full Form 1023, which has a $600 user fee. You pay on Pay.gov when you submit.

You can use Form 1023-EZ only if you project gross receipts of $50,000 or less for each of the next three years and hold $250,000 or less in assets. Work through the IRS Eligibility Worksheet honestly before you choose.

Step 8: Apply for Illinois tax exemption

Illinois recognizes your federal exemption, so there is no separate state income-tax application. What you apply for is the sales tax exemption, known as an E number: file Form STAX-1 with the Illinois Department of Revenue, at no cost, and once approved your nonprofit can buy tax-free. Allow up to a few months for it to process.

Step 9: Register with the Attorney General (Form CO-1)

Illinois requires charitable registration before you solicit contributions, handled by the Attorney General's Charitable Trust Bureau. You file Form CO-1 with a financial form, for a $15 fee. Illinois registers you under two laws at once, so this single filing covers both holding charitable assets and soliciting funds.

Step 10: Stay in good standing

Illinois has two small annual filings. You file an annual report with the Secretary of State before your anniversary month, for a $10 fee, and an annual financial report (Form AG990-IL) with the Attorney General for $15. Federally, you file a Form 990 with the IRS. Put all three on a calendar. Ember Spark starts this calendar for you. Once you add Compliance and enter your incorporation date, it tracks your Form 990 and Secretary of State annual report and emails you before each one is due. You can add the Attorney General report yourself.

What does it cost to start a nonprofit in Illinois?

A bare-bones DIY start in Illinois is mostly the state fees plus the IRS fee. Here is the honest breakdown.

• Articles of Incorporation: $50
• Charitable registration (CO-1): $15
• Sales tax exemption (STAX-1): no fee
• IRS Form 1023-EZ: $275, or Form 1023: $600
• EIN: free, direct from the IRS

So many small Illinois nonprofits get set up for roughly $340 to $665, plus small annual report fees the following year.