Illinois State Tax Requirement for C-Corp

[jaranarochel]

Hello,

I incorporated my business in Illinois on November of last year. My C-Corp company had not engaged in any business activities in Illinois for the 2019 tax year. As such, no income or losses were generated last year for the business. As far as I am aware, the business is still required to file a federal income tax return.

Given the information above, does my business also need to file an Illinois state income tax return? According to the Illinois Department of Revenue: "A C-Corp must file form IL-1120 if it is qualified to do business in the state of IL and is required to file a federal income tax return, regardless of net income or loss." I don't know whether the "qualified" requirement applies to my business given my situation.

Thank you!

[Irene2805 · Accepted solution]

Yes - Your business does have to file an IL state income tax return because:

1. You are required to file a federal return; and
2. Since you are incorporated in the state of IL, you are considered to be "qualified to do business in the state of Illinois."