Notice: Function _load_textdomain_just_in_time was called incorrectly. Translation loading for the wp-migrate-db domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /srv/app/gotoiba-dev/htdocs/web/wp-includes/functions.php on line 6121
Our current policy is to require out-of-state businesses to file with the Illinois Secretary of State before establishing an account with us, if they are doing business in Illinois. Is this a requirement in Illinois? – IBA Compliance Connection

IBA Compliance Connection

Your go to source for compliance!

Our current policy is to require out-of-state businesses to file with the Illinois Secretary of State before establishing an account with us, if they are doing business in Illinois. Is this a requirement in Illinois?

—

by

Yes, generally businesses that “transact business” in Illinois must apply for a foreign business registration with the Illinois Secretary of State.

Note that a business will not be considered to be “transacting business” in Illinois if it merely maintains bank accounts in the state without otherwise transacting business in the state.

For resources related to our guidance, please see:

  • Business Corporation Act of 1983, 805 ILCS 5/13.05 (“Admission of foreign corporation. Except as provided in Article V of the Illinois Insurance Code, a foreign corporation organized for profit, before it transacts business in this State, shall procure authority so to do from the Secretary of State. . . .”)
  • Business Corporation Act of 1983, 805 ILCS 5/13.75(3) (“Activities that do not constitute transacting business. . . . (3) maintaining bank accounts; . . .”)
  • Limited Liability Company Act, 805 ILCS 180/45-5 (“Admission to transact business. (a) Except as provided in Article V of the Illinois Insurance Code, before transacting business in this State, a foreign limited liability company shall be admitted to do so by the Secretary of State. . . .”)
  • Limited Liability Company Act, 805 ILCS 180/45-47(a)(3) (“Activities that do not constitute transacting business. . . . (3) Maintaining bank accounts. . . .”)
     
  • General Not For Profit Corporation Act of 1986, 805 ILCS 105/113.70 (“Conducting affairs without authority. No foreign corporation conducting affairs in this state without authority to do so is permitted to maintain a civil action in any court of this State, until such corporation obtains such authority. . . .”)