November 12, 2018

November 12, 2018

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llinois Franchise Tax Relief on the Horizon

For Illinois corporate clients who pay significant Illinois corporate franchise tax, relief may be on the way.

Illinois is on the verge of joining Delaware and many other jurisdictions that permit simple conversions from corporate to limited liability company (LLC) form, by enacting the “Entity Omnibus Act” as part of House Bill 2963, passed by the Illinois General Assembly and sent to the governor’s office last week. Assuming the governor signs the Bill, the effective date of the new law would be July 1, 2018.

Corporations formed under the Illinois Business Corporation Act often face impediments to conversion to an LLC to be free of the franchise tax. The new Act should make planning and execution considerably easier.

© 2018 McDermott Will & Emery


About this Author

 Fred M. Ackerson, McDermott Will Emery Law Firm, Tax Attorney

Fred M. Ackerson is counsel in the law firm of McDermott Will & Emery LLP and is based in the Firm's Chicago office.  Fred focuses his practice on state and local tax planning and controversies.