State Franchise / Excise Tax Filings
DIY Step-by-Step Guide(No agent or lawyer)
As an example, in Illinois:
1) Determine Your Filing Type: ● Corporations must file Form IL-1120 (Corporation Income and Replacement Tax Return). ● LLCs taxed as corporations use the same form. ● LLCs taxed as partnerships or disregarded entities may need Form IL-1065 or IL-1040 (Schedule NR). ● Cost: Free
2) Access Official Filing Portals: ● Illinois MyTax Portal: https://mytax.illinois.gov/ ● IRS (for federal return reference): https://www.irs.gov/businesses
3) Gather Required Data: ● Business name, FEIN, and Illinois file number. ● Prior year’s taxable income or loss. ● Current-year income, deductions, and credits. ● Authorized and issued capital stock (for corporations). ● Payment method for franchise tax due (ACH debit or credit card).
4) Complete the Filing Process: ● Log into the MyTax Illinois portal. ● Choose the correct filing form (IL-1120, IL-1065, or IL-1040). ● Fill out all required sections carefully, ensuring figures match your financial statements. ● Attach supporting schedules if requested (balance sheet, statement of income). ● Submit your return and make payment online. Note: If your total tax liability exceeds $400, quarterly estimated payments may be required.
5) Mail-In Option (if preferred):
Download the correct form from the Illinois Department of Revenue:https://www2.illinois.gov/rev/forms
Complete, sign, and mail it with payment to:Illinois Department of RevenueP.O. Box 19031Springfield, IL 62794-9031Processing time: 2–4 weeks.Cost: Free (postage and payment fees apply).
6) Receive Confirmation: ● You’ll receive a filing acknowledgment and payment confirmation from the Department of Revenue. ● Keep this for your records — it may be required for annual report renewal or Certificate of Good Standing.
Common Mistakes People Make
● Missing the annual filing deadline (usually due the same day as the Annual Report). ● Reporting incorrect total capital or net worth, resulting in overpayment or rejection. ● Filing the wrong form type (LLC vs. Corporation). ● Forgetting to include your FEIN or entity number. ● Overlooking franchise tax obligations when registering in multiple states (“foreign qualification”).
Documents & Information Needed
● Business name and entity file number (as listed with the Secretary of State). ● FEIN (Federal Employer Identification Number). ● Annual Report or financial statement showing company capital and assets. ● Fiscal year start and end dates. ● Gross receipts or total income for the reporting period. ● Contact details of the company officer or manager responsible for tax compliance.
Let Victoria Handle It for You
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Agency Founder, Victoria Duchovny