Illinois S Corp Formation Services
Maximize tax savings with S Corporation election in Illinois. Compare top-rated formation services, understand tax benefits, and launch your S Corp successfully.
ZenBusiness
ZenBusiness offers S Corp tax election as a separate service for LLCs formed through their platform. They offer three tiers: Starter ($0 + state fees), Pro ($199/year + state fees), and Premium ($349 first year, then $399/year + state fees). The S Corp election service is available for an additional fee (free if filed within 30 days of LLC formation, $200 service fee after 30 days). Their comprehensive support includes 100% accuracy guarantee and award-winning customer service.
S Corp Advantages:
- Handles S Corp election (Form 2553) filing
- 100% accuracy guarantee and 60-day money-back guarantee
- Award-winning customer support (phone, chat, email)
- Guidance on S Corp compliance requirements
S Corp vs LLC: Which is Right for Your Illinois Business?
Both structures offer liability protection, but they differ significantly in taxation, management, and compliance requirements.
💰 Tax Comparison
S Corporation
- Salary + distributions
- Lower SE tax on distributions
- Payroll tax compliance required
- Best for high-profit businesses
LLC
- Pass-through taxation
- Self-employment tax on all profits
- Simpler tax filings
- More flexible distributions
Rule of Thumb: S Corp may save taxes when business profits exceed $60,000-80,000 annually
📈 Choose S Corp When:
- Business profits exceed $60K-80K
- Want to minimize SE taxes
- Can handle payroll requirements
- Want investor credibility
- Have W-2 experience/comfort
🏢 Choose LLC When:
- Starting out or low profits
- Want maximum simplicity
- Real estate investments
- Flexible profit distributions
- Multiple owner classes
Illinois S Corp Formation Services Compared
Expert reviews of top S Corp formation and election services
| Service | Starting Price | Rating | S Corp Election | Best For | Action |
|---|---|---|---|---|---|
|
#1
ZenBusiness Best Overall | $0 + state fees (S Corp election separate service) | 4.9 | Add-on Service | LLC owners wanting to elect S Corp tax s... | Get Started |
| Bizee Best Value | $0 + state fees (includes S Corp election) | 4.6 | Included All Packages | Budget-conscious businesses wanting S Co... | Get Started |
| LegalZoom Best for Legal Support | $149 + state fees (S Corp election separate) | 4.2 | Separate Service | Businesses needing comprehensive legal s... | Get Started |
| Rocket Lawyer Best Legal Platform | $49.99 with membership + corporation formation (with membership) | 4 | $49.99 w/ Membership | Businesses needing ongoing legal service... | Get Started |
| Inc Authority Budget-Friendly Option | $79 + corporation formation + state fees | 4.4 | Available | Budget-conscious businesses wanting S Co... | Get Started |
Detailed Service Reviews
ZenBusiness
About ZenBusiness
ZenBusiness offers S Corp tax election as a separate service for LLCs formed through their platform. They offer three tiers: Starter ($0 + state fees), Pro ($199/year + state fees), and Premium ($349 first year, then $399/year + state fees). The S Corp election service is available for an additional fee (free if filed within 30 days of LLC formation, $200 service fee after 30 days). Their comprehensive support includes 100% accuracy guarantee and award-winning customer service.
Best For
LLC owners wanting to elect S Corp tax status with comprehensive ongoing support
Customer Reviews
Read Trustpilot Reviews✅ Advantages
- Handles S Corp election (Form 2553) filing
- 100% accuracy guarantee and 60-day money-back guarantee
- Award-winning customer support (phone, chat, email)
- Guidance on S Corp compliance requirements
- Fast 1-day processing included with Pro and Premium
- Worry-free compliance service FREE for 1 year with Starter, included in Pro/Premium
- Velo AI assistant included with all packages
- Mobile app for business management on the go
- Blueprint for Success educational program
- Operating agreement and 25+ business document templates with Pro/Premium
- Logo builder included with Pro/Premium
- Online tools bundle (domain, website, email) with Pro/Premium
- Money Pro bookkeeping with Premium (60-day free trial)
- Registered agent service included with Premium
- Business advisor consultation with Premium
⚠️ Considerations
- Must first form LLC or corporation
- S Corp election has strict deadlines
- Not suitable for all business types
- Some features require upgraded plans (Pro or Premium)
- Registered agent service not included in Starter/Pro ($199/yr)
- Special offers auto-renew at regular prices after trial period
Bizee
About Bizee
Bizee (formerly Incfile) includes S Corp tax election (IRS Form 2553) in ALL packages, including their free Basic package. This makes them uniquely positioned for S Corp elections - you get both LLC/corporation formation AND S Corp election for just state fees in their Basic package. Their Standard ($199) and Premium ($299) packages add comprehensive features like EIN, business tax consultation, registered agent service, and expedited processing.
Best For
Budget-conscious businesses wanting S Corp election included for free with formation
Customer Reviews
Read Trustpilot Reviews✅ Advantages
- S Corp election (Form 2553) included in ALL packages
- Basic package is $0 + state fees with S Corp election
- Business tax consultation included
- Expedited filing available
- One-year free registered agent service
- Banking resolution documents included
⚠️ Considerations
- EIN not included in Basic package
- Limited ongoing legal support
- Processing can take several weeks
- Premium features require paid packages
LegalZoom
About LegalZoom
LegalZoom offers corporation formation starting at $149 (Economy package), with Standard ($329) and Express Gold ($349) options that include additional features like attorney consultations and expedited processing. S Corp election is available as a separate service. With over 20 years of experience, they provide comprehensive legal guidance and extensive legal network support, making them ideal for businesses needing ongoing legal assistance.
Best For
Businesses needing comprehensive legal support and attorney guidance for S Corp setup
Customer Reviews
Read Trustpilot Reviews✅ Advantages
- Attorney consultations available
- Corporation formation with S Corp election
- Extensive legal document library
- Rush processing available
- 30+ years in business
- Peace of mind guarantee
⚠️ Considerations
- Higher pricing than competitors
- S Corp election costs extra
- Registered agent service expensive ($249/year)
- Many services require additional fees
Rocket Lawyer
About Rocket Lawyer
Rocket Lawyer offers S Corp election services through their comprehensive legal platform. With a Rocket Legal+ membership, you can access discounted S Corp document preparation and filing. Their experienced pros handle state requirements and provide tax guidance throughout the process. The platform also includes ongoing legal document access and attorney consultations.
Best For
Businesses needing ongoing legal services beyond just S Corp election
Customer Reviews
Read Trustpilot Reviews✅ Advantages
- S Corp election for $49.99 with membership
- Experienced legal professionals
- Comprehensive legal platform
- Attorney consultations included
- Document preparation guaranteed
- Ongoing legal document access
⚠️ Considerations
- Requires membership for best pricing
- Corporation must be formed first
- No mobile app available
- Limited to attorney consultations vs full legal services
Inc Authority
About Inc Authority
Inc Authority includes S Corp document filing assistance in their premium packages, offering Form 2553 preparation along with business formation. With over 30 years of experience and genuinely affordable pricing, they provide specialized tax assistance and business analysis. Their approach focuses on helping startups access S Corp benefits without breaking the budget.
Best For
Budget-conscious businesses wanting S Corp election with basic support
Customer Reviews
Read Trustpilot Reviews✅ Advantages
- Includes S Corp document filing in premium packages
- Over 30 years of experience
- Business tax analysis included
- Affordable pricing structure
- Free registered agent first year
- Tax planning consultation included
⚠️ Considerations
- S Corp election not in free package
- Processing slower than competitors
- Limited ongoing compliance tools
- Registered agent renewal at higher rate
Illinois S Corporation FAQ
Common questions about S Corp election and tax benefits
What is an S Corporation election?
An S Corporation election (Form 2553) is a tax election filed with the IRS that allows your corporation or LLC to be taxed as an S Corp. This means pass-through taxation while potentially saving on self-employment taxes through salary/distribution structure.
How much can I save with S Corp taxation in Illinois?
S Corp taxation can save 10-15% on self-employment taxes for the distribution portion of your income. For example, if your business profits $100,000, you might pay yourself a $40,000 salary (subject to payroll taxes) and take $60,000 as distributions (not subject to SE tax), saving about $9,000 annually.
Can I elect S Corp status for my existing Illinois LLC?
Yes! You can elect S Corporation tax treatment for your existing LLC by filing Form 2553 with the IRS. This must be done by March 15th of the tax year you want the election to take effect, or within 75 days of forming your LLC.
What are the disadvantages of S Corp election?
S Corp taxation requires payroll compliance, reasonable salary requirements, and less flexibility in profit distributions. You'll need to run payroll, file additional tax returns, and maintain corporate formalities. It's generally not worth it for businesses with profits under $60,000-80,000.
Ready to Save Taxes with S Corp Election?
Maximize your tax savings and business credibility with professional S Corporation setup and election services.
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Tax Disclaimer: Consult with a qualified tax professional to determine if S Corp election is right for your specific situation.