Maintain a Business in Good Standing in Illinois: Full Guide for 2025

Running a business successfully in Illinois involves more than just registering your company and launching operations. One of the most important but often overlooked elements of compliance is keeping your business in good standing in Illinois. This legal status confirms that your entity complies with state requirements, such as filing annual reports, paying taxes, and maintaining a registered agent.

In this article, we’ll explain what it means to be a corporation in good standing in Illinois, how to obtain a certificate of good standing in Illinois, how to use the Illinois Secretary of State good standing search, and why maintaining this status is vital for business credibility and expansion.

What Does It Mean to Be a Business in Good Standing in Illinois?

A business in good standing in Illinois is one that complies with all state-level obligations enforced by the Illinois Secretary of State. This status confirms that your business:

• Has filed all required annual reports.
• Has paid applicable fees and taxes.
• Maintains a registered agent and valid address in the state.
• Is legally authorized to conduct business in Illinois.

Businesses not in good standing may face penalties, including suspension of their right to operate, inability to secure financing, or rejection in government or corporate contract bids.

What Is a Business in Good Standing in Illinois?

Why Good Standing Status Matters?

Here are several reasons why maintaining good standing is critical:

1. Legal Authorization to Operate: Good standing signifies that your entity is recognized as a valid and lawfully operating business in Illinois.
2. Business Credibility: Many clients, vendors, and partners check the standing status before signing contracts or establishing commercial relationships.
3. Financing and Banking: Banks and lenders often require a certificate of good standing Illinois business as part of their due diligence before approving loans or credit lines.
4. Foreign Qualification: To register your Illinois-based business in another state (foreign qualification), you must present a Secretary of State Illinois certificate of good standing.
5. Government Contracts: State and federal agencies may require proof of good standing to qualify for bids or grants.

Check Your Business Status: Illinois Secretary of State Good Standing Search

The Illinois Secretary of State good standing search is a free online tool that lets you check whether your business entity is in compliance.

To use this tool:

1. Visit the Illinois Secretary of State's Corporation/LLC Search.
2. Enter your business name or file number.
3. Review the entity’s status and file history.

The status will indicate whether your business is “Active,” “In Good Standing,” “Dissolved,” or “Not in Good Standing.”

Illinois Secretary of State Good Standing Search

Obtain a Certificate of Good Standing in Illinois

A certificate of good standing Illinois business is an official document issued by the Secretary of State. It verifies that your company complies with all legal requirements to operate in the state.

Steps to Request the Certificate:

1. Go to the Illinois Secretary of State Business Services portal.
2. Search for your business using the name or file number.
3. If your entity is in good standing, click “Order a Certificate of Good Standing.”
4. Pay the applicable fee (typically $25 for corporations, $45 for LLCs).
5. Download the digital certificate or request a printed copy via mail.

Note: If your business is not in good standing, you must first resolve all outstanding issues before ordering the certificate.

Keep a Corporation in Good Standing in Illinois

If you operate a corporation in good standing in Illinois, here are the key requirements to maintain that status:

1. File Your Annual Report

All corporations and LLCs must file an annual report with the Secretary of State.

• Due by the first day of the anniversary month of your incorporation.
• Can be filed online at https://www.ilsos.gov.
• Fee: $75 for corporations, $250 for LLCs.

Late filings may result in penalties or administrative dissolution.

2. Maintain a Registered Agent

Illinois law requires every business entity to have a registered agent with a physical Illinois address. This agent must be available during business hours to receive legal and state correspondence.

If your registered agent resigns or changes address and you fail to update the record, your business could fall out of good standing.

3. Pay All Applicable Taxes

Ensure your business pays all Illinois state taxes, including:

• Corporate income tax
• Sales tax (if applicable)
• Withholding tax (for employees)

The Illinois Department of Revenue (IDOR) manages tax filings. Non-payment can lead to a revocation of your good standing status.

4. Respond to State Notices Promptly

The Secretary of State may send notices requiring action, such as updates to your registered agent, address, or business structure. Always respond promptly to avoid non-compliance.

5. Avoid Administrative Dissolution

Failing to comply with filing and payment obligations for extended periods can lead to administrative dissolution. Once dissolved, your business must go through a reinstatement process and pay additional fees to regain good standing.

Corporation in Good Standing in Illinois

Reinstating a Business Not in Good Standing in Illinois

If your business has lost its good standing, it is possible to regain compliance through the following steps:

1. Determine the cause of non-compliance

• Was it due to missed annual reports?
• Were taxes unpaid?
• Did you fail to maintain a registered agent?

2. Resolve Outstanding Issues

• File all overdue documents.
• Pay late fees and penalties.
• Re-appoint a valid registered agent if necessary.

3. Submit a Reinstatement Request

• Corporations: File the Application for Reinstatement (Form BCA 12.45).
• LLCs: File the Application for Reinstatement (Form LLC 35.40).
• Pay all reinstatement fees.

Once reinstated, your status will be updated in the Illinois Secretary of State good standing search tool.

Business Not in Good Standing in Illinois

Common Use Cases for the Secretary of State Illinois Certificate of Good Standing

The Secretary of State Illinois certificate of good standing is not just a piece of paper—it is often required in several business scenarios:

• Opening a business bank account
• Applying for business loans or credit lines
• Registering to do business in another state (foreign qualification)
• Renewing business licenses or permits
• Negotiating mergers, acquisitions, or investor deals
• Applying for grants or government contracts

If your business is pursuing any of these activities, ensure your certificate is current and your status remains compliant.

Final Thoughts

Maintaining a business in good standing in Illinois is a fundamental responsibility for business owners who want to grow, expand, or simply operate legally within the state. Whether you are managing a limited liability company or a corporation in good standing Illinois, your reputation and operational capacity depend on compliance.

Using the Illinois Secretary of State good standing search, regularly filing annual reports, paying all required taxes, and appointing a reliable registered agent will help your business avoid penalties and administrative dissolution.

When needed, obtain a certificate of good standing Illinois business to prove your legitimacy to financial institutions, government agencies, and partners. It is a simple yet powerful document that opens doors for growth and opportunity.

If your business status has lapsed, take prompt steps to reinstate and regain your Secretary of State Illinois certificate of good standing to ensure a smooth path forward.