New Illinois Business Laws Help Startups and SMBs

Illinois business lawyerAre you a small- or medium-sized business owner in Illinois? Or perhaps you’re an aspiring entrepreneur in search of funding? Whichever the case, here’s the good news: A handful of state and federal laws will most likely save you money moving forward — and present new opportunities.

Below is a breakdown of the 2018 laws poised to help Illinois businesses prosper.

New Illinois Business Law: The “Fee Slashing” SB 867

It used to cost between $500 and $750 to register an LLC in Illinois. SB 867 slashed those fees to $39 and $59. Referred to as “a new day,” legislators hope the cut costs will provide a break to existing businesses and encourage new ones.

Excerpt from new Illinois business law, SB 867 (2018):

Amends the Limited Liability Company Act. Reduces the fee collected by the Secretary of State for the filing of articles of organization, applications for admission, and restated articles of organization from $500 to $39 and reduces those fees in connection with a limited liability company with ability to establish series from $750 to $59. Effective immediately.

New Illinois Business Law: The “Investment Credit” SB 2012

Looking to secure funds for your startup? Well, thanks to SB 2012, investors may be more willing to bet on you. The new statute doubles the allowable angel investment credit, taking it from $10,000 to $20,000.

Excerpt from new Illinois business law, SB 2012 (2018)

Amends the Illinois Income Tax Act. Makes the following changes with respect to the angel investment credit: (1) provides that the credit applies for taxable years ending on or before December 31, 2021 (currently, December 31, 2016); (2) increases the maximum aggregate amount of the angel investment credit from $10,000,000 to $20,000,000; (3) defines “investment” as equity, Simple Agreement for Future Equity (SAFE) Agreements, and convertible notes; (4) provides that each qualified new business venture must renew its registration on an annual basis; (5) provides that, for taxable years ending on or after December 31, 2017, applicants for the credit must make a minimum investment of $10,000 in a qualified new business venture (currently, there is no minimum investment requirement).

New Illinois Business Law: Startup Funding For Public Aid Recipients

Do you have a super business idea, but think you can’t secure funding because of public assistance? Think again! HB 736 establishes a startup grant program for people receiving aid. So, get those business plans ready!

Excerpt from new Illinois business law, HB 736 (2018)

Requires the Department of Human Services to establish a small business grant program for public aid recipients who are interested in developing a new start-up business. Requires grant applicants to submit an initial business plan or proposal to the Department that clearly articulates the viability of the new start-up business and how the grant money will be used to develop the business. Provides that the Department shall use such application materials to determine an applicant’s eligibility under the program, the grant amount to be awarded, if applicable, and the number of grants an eligible applicant will receive under the program.

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