Foreign Resources

The City of Chicago and the people of Chicago have long been leaders in international business. There are over two-dozen foreign chambers of commerce, and numerous foreign-based trade organizations in and around Chicago. The international business community is well supported by a wide variety of business services:

Foreign consulates can often be of assistance to businesses from their home countries wishing to establish operations in Chicago.

Business Forms and Structures

Most international business in Chicago is conducted through the general corporate business form or structure. The corporation may be incorporated in the State of Illinois, another state, or outside the United States. Every corporation doing business in Illinois must be "qualified" or registered as a "foreign corporation" with the Illinois Secretary of State unless it is an Illinois corporation. Other business forms or structures include:

  • Partnerships
  • Other organizations and trade organizations are listed at: Joint ventures (a form of partnership in which the partners are often corporations)
  • Special business forms such as limited liability companies (LLC's)
  • Trusts
  • Not-for-profit corporations

The choice of a specific business form or structure usually depends on tax considerations, limitation of liability objectives or particular corporate governance requirements. The selection of the best business structure usually is based on the advice of legal, accounting and tax professionals.

Business Name Considerations

Is the name you want to use available in Illinois?

Typically, it is wise, even though not mandatory, to register a company name with the Illinois Secretary of State to avoid confusion with other enterprises and preempt latecomers from registering a desired name. The Secretary of State’s office can confirm whether a specific name has already been registered by another party.

The Illinois Secretary of State web site can be searched for existing Corporate and LLC (Limited Liability Company) names, or a preliminary check of corporate name availability may be conducted via telephone by calling (217) 782- 9521. For LLC name availability, please call (217) 524-8008.

Is your business name in conflict with identical or similar names used anywhere in the United States by others?

  • Trade names may be registered with the U.S. Patent and Trademark Office.
  • Even if the name you want to use is available in Illinois, it may conflict with the same or a similar name already in use elsewhere in the U.S. It is a good idea to conduct a general nationwide name availability search.

Incentives

In the U.S., incentives are sometimes granted to companies that expand or locate in officially targeted areas, or qualify for existing incentive programs such as those offered by: the U.S. Government, states, cities and counties. Most incentives are provided through state or local governments and reduce, or waive, certain taxes that affect business operations. State and local authorities must comply with existing laws determining the circumstances in which incentives can be granted. Laws that govern incentives relating to expansion and relocation of business within the U.S. generally do not distinguish between domestically owned and foreign-owned firms.

More information on financial incentives in Chicago

Discrimination Laws

U.S., Illinois and local laws generally prohibit various forms of discrimination in the hiring, discharge and promotion of employees on the basis of sex, age, racial or ethnic background and religious preference. U.S. law also makes employers responsible to determine that persons they hire may be lawfully employed in the U.S. Information about these laws and regulations can be obtained from:

Trade

World Business Chicago concentrates on assisting companies with expansion, location or relocation of facilities. There are other organizations in and around Chicago to assist with trade issues. For most foreign-owned businesses, the best trade assistance is provided by:

  • U.S.-based offices of their home country's trade organizations
  • U.S.-based foreign chamber of commerce 
  • U.S.-based consular office

A link to a directory of foreign consular offices is provided under the Business Startup section, above. A directory with contact information on many trade-related organizations based in or near Chicago, and a directory of international trade oriented events can be viewed by selecting the following links:

Taxes

All corporations operating in the United States are subject to a variety of federal, state and local taxes. The following is a summary of the principal taxes payable by international corporations locating in Chicago and surrounding communities.

Corporate Income Taxes

Federal Income Tax
Foreign companies with substantial investments in the U.S. generally prefer to do business through subsidiaries incorporated in the U.S. These subsidiaries are subject to the federal corporate income tax, which is applied to the worldwide net income of all U.S. corporations. To provide relief from double taxation, corporate income tax credits are allowed for taxes paid to foreign countries. The corporate income tax rate schedule is as follows:

Federal Corporate Income Tax Rates
$ Over $ But Not Over $ Pay + % $ Of Excess Over
0 50,000 $ - 15 $0
50,000 75,000 7,500 25 50,000
75,000 100,000 13,750 34 75,000
100,000 335,000 22,250 39 100,000
335,000 10,000,000 113,900 34 335,000
10,000,000 15,000,000 3,400,00 35 10,000,000
15,000,000 18,333,333 5,150,000 38 15,000,000
18,333,333 - 35% of taxable income    
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