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Wed, 05/22/2013 - 5:30pm - 7:30pm
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Small Business
Advocacy Council
20 S. Clark, Suite 500
Chicago, IL 60603
Office: (847) 990-7909
Fax: (312) 372-7076
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SBAC Advocacy
The advocacy section contains profiles and other content related to our advocacy work.
SBAC 2013 Legislative Agenda
Small Business Advocacy Council
2013 Legislative Agenda
ACTION PAGE -- EMAIL YOUR LEGISLATORS A COPY OF THIS AGENDA
We highly encourage you to also call your legislators and send letters in support of our agenda.
The Small Business Advocacy Council (SBAC) is a new organization of 700 small and mid-sized businesses. We actively engage in shaping public policy to reflect the interests of small and mid-sized businesses.
Of the 1.1 million businesses in Illinois, about 870,000 are self-employed, about 250,000 have 1-499 employees and 4300 have more than 500 employees. About half of the state’s 5.1 million employees work at small to mid-sized businesses (under 500 employees).
To create a better business climate in Illinois for small and mid-sized businesses, the SBAC proposes the following measures in 2013 for the General Assembly to consider.
1. LLC Filing Fees
Many small and mid-market businesses file and operate as Limited Liability Companies because that is best structure for their business. In Illinois, however, the fees associated with filing and operating an LLC are significantly higher than those paid by corporations. For example, the fee for filing an LLC in Illinois is three times higher than the fee for filing as a corporation and ranks among the highest in the nation. The fees associated with maintaining an Illinois LLC are also significantly higher - with LLCs paying an annual fee of $250 as opposed to the $75 fee paid by a corporation. Small businesses should not be penalized simply because they operate as LLCs.
Since we initiated legislation to lower LLC filing fees, the concept has gained considerable traction. Several additional bills have been filed that will reduce these fees. HB 2230, a bill that will reduce LLC fees by 50%, has been co-sponsored by 49 state representatives and secured strong, bi-partisan, support. Other bills seek to reduce LLC fees in various ways.
Email your Legislators our SBAC 2013 Policy Agenda!
Make the voice of small and mid-market business folks heard!
Email your Legislators our SBAC 2013 Policy Agenda and request their support directly from our our SBAC site below:
http://salsa3.salsalabs.com/o/50355/p/dia/action/public/?action_KEY=9921
Small Business Advocacy Council 2013 Legislative Agenda
Small Business Advocacy Council
2013 legislative agenda
The Small Business Advocacy Council is a new organization of 650 small and mid-sized businesses. We actively engage in shaping public policy to reflect the interests of small and mid-sized businesses.
Of the 1.1 million businesses in Illinois, about 870,000 are self-employed, about 250,000 have 1-499 employees and 4300 have more than 500 employees. About half of the state’s 5.1 million employees work at small to mid-sized businesses (under 500 employees).
To create a better business climate in Illinois for small and mid-sized businesses, the SBAC proposes the following measures in 2013 for the General Assembly to consider:
1. Lower LLC filing fees
Illinois has the highest filing fees for LLCs (Limited Liability Companies) in the nation. Each one of the two dozen or so fees (for an annual report, changing a name, amending articles of organization, etc.) are more than three times as high than the equivalent fees for corporations. These fees are well above the market for what states typically charge as filing fees for LLC and serve as a disincentive for entrepreneurs to create (or keel) their businesses in Illinois.
We support the following bills:
HB 65 (Ford-Davis, Golar, Flowers, Hoffman, Morrison, Williams, Pihos, Meier, Mayfield)
Reduces LLC fees to the same level as corporate fees
HB 2230 (Kay-Tryon-Pritchard-Hays, Sacia, Brauer, Rosenthal, Brown, Mitchell, Cavaletto, Halbrook, Davidsmeyer, Unes, Hammond, Tracy, Cabello, Kosel, Leitch, McAuliffe, Poe, Senger, Sommer, Bellock, Ives, Pihos, Durkin, Roth, Reis)
Reduces LLC fees by 50%
HB 2987 (Pihos)
Eliminates LLC expedited filing fee for requests submitted online
HB 3033 (Cloonen)
Reduces business filing fees for the first two years of its existence
HB 3395 (Pihos)
Reduces LLC article of organization fee to $100
SB 2246 (Radogno)
Reduces LLC filing fees to the same level as corporate fees
HB 2705 - UNEMP TAX PAY QUARTERLY
HB 2705 (Ford) - UNEMP TAX PAY QUARTERLY
Amends the Unemployment Insurance Act. Provides that beginning in 2016, employer contributions shall be paid in quarterly installments.
To view complete text, Click Here.
To view bill status, Click Here.
HB 2331 - UNEMPLOY-BENEFIT CHARGE-60 DAY
HB 2331 (Ford)- UNEMPLOY-BENEFIT CHARGE-60 DAY
Amends the Unemployment Insurance Act. Provides that an employer shall not be subject to benefit charges resulting from payments made to a claimant unless the claimant was employed for 60 (rather than 30) days.
To view complete text, Click Here.
To view bill status, Click Here.
EDGE Tax Credit Program Reform- House Amendment 2 to HB1336 - Fact Sheet
EDGE tax credit reform - House Amendment 2 to HB1336
Problem: Our economic development policy revolves around providing special tax breaks to a few select companies through the EDGE tax credit program. The requirements of the program lock out small businesses. Further, the program requires more transparency and accountability to ensure taxpayers are getting the best bang for the buck for these special tax breaks.
Research: A 2012 Pew Center on the States report entitled Evidence Counts considers Illinois tax credit program among the worst in the country in terms of transparency, accountability and ensuring that the state gets the most jobs created from each of the special tax breaks.
Solution: HB 1336 (Franks-Yingling-Conroy-Sente, Mitchell) would modernize and improve the EDGE tax program in a number of ways:
1. Creates independent, bipartisan oversight for approving applications. Currently, there is no check-and-balance in the selection progress. The same Department promotes, awards and monitors the special tax breaks. That’s not a good system. The bill would create an independent, bipartisan Board of 9 professionals with accounting or financial backgrounds to approve or reject EDGE applications. The Treasurer and the Director of Revenue, two of the most appropriate officials to determine whether special tax breaks are truly justified, would serve
as ex oficio members of the Board.
2. Increases Accessibility To Small Businesses. Professional services firms by law may not
HB 1336 – EDGE Econ Development Board
HB 1336 (Franks) – EDGE Econ Development Board
Amends the Illinois Economic Development Board Act and the Economic Development for a Growing Economy Tax Credit Act to provide that EDGE Agreements are subject to the approval of the Illinois Economic Development Board (instead of the Illinois Business Investment Committee). Provides that the Illinois Business Investment Committee is dissolved on the effective date of the amendatory Act and all duties and responsibilities of the Committee shall be assumed by the Illinois Economic Development Board. Sets forth the membership of the Illinois Economic Development Board. Provides that the Director of Revenue and the Auditor General shall also serve as ex officio members of the Board. Sets forth the powers of the Board. Removes provisions requiring Applicants to make certain capital investments. Changes the duration of the credit from 10 years to 5 years. Provides that the credit may not exceed the lesser of the incremental income tax attributable to the project or $10,000 per New Employee. Provides that no more than $100,000,000 in credits may be awarded in State Fiscal Year 2014 or any State fiscal year thereafter. Makes other changes.
To view complete text, Click Here.
To view bill status, Click Here.
Letter of Support for HB65 - LLC Filing Fees Bill
Dear Representative,
As a constituent and small business advocate, I write to ask you to co-sponsor HB 65, a bill that reduces the fees associated with the formation and operation of limited liability companies to mirror those charged to Illinois corporations. The flexibility provided by LLCs make them the right choice for many small and mid-market businesses. Formation as an LLC also encourages entrepreneurs to invest their time and money into viable business enterprises. Our state’s fee structure must not arbitrarily penalize small and mid-market businesses for choosing the best structure for their companies.
Presently, the fee for filing as an LLC in Illinois is three times higher than filing as a corporation and ranks among the highest in the nation. Indeed, it costs $500 to form an LLC in Illinois. It costs only $150 to create a corporation. Not only is the Illinois LLC filing fee excessive, but the costs of maintaining and modifying an LLC are arbitrarily higher than those associated with Illinois corporations. Each year an LLC must pay an annual fee of $250 to the state. Corporations pay a much lower annual fee. To register a corporate name, one must pay $50.00. It is $300 to register the name of an LLC. This disparity even extends to folks intending to dissolve their business. It costs $100 to dissolve an LLC, as opposed to only $5 for corporations.
We must create a business environment that stimulates small business and entrepreneurship. This will create jobs in Illinois and begin to combat the perception that Illinois is not a friendly place to operate a small business.
Would you co-sponsor and support HB 65? Please let me know if you will.
Thank you for your consideration and anticipated support.
Sincerely,
MEMBER
HB65 LLC Fee Schedule - Fact Sheet
Illinois has the highest fees for LLCs in the country - and the largest fee difference between LLCs and corporations.
Problem: Many small businesses want to set up as a Limited Liability Company, but the fees for doing so are three times as high as the fees for setting up a corporation. It’s $500 just to create an LLC. That’s the highest in the country. Further, since the fees for corporations are more reasonable than LLC fees, many small businesses choose to file as a corporation even when it
might be better for them to be an LLC.
Solution: HB 65 equalizes the fees for Limited Liability Companies to the same fee level as what corporations are charged.
Examples: The fee to file an article of dissolution for a corporation is $5. For an LLC it is $100. To file a registration of name: LLC: $300, corporation $50. Annual report: LLC $250, corp: $75
Choice of entity impacts: LLCs are far more flexible than corporations as corporations can only have “one class of stock” which limits the ability to bring in new investors on unique terms (such as income, cash flow or loss rights). Furthermore, one type of corporation - the S corporation -
requires all shareholders to be persons, not entities, which also eliminates the ability to bring in investors. Illinois fee structure should not push new businesses into forming as corporations.
Business-friendly background: Illinois has recently lowered taxes for specific large companies(CME, Ford, Sears, Motorola) but hasn’t done as much for the hundreds of thousands of small businesses that don’t get a special deal. Establishing reasonable, lower fees for all businesses is a better way than picking particular companies to subsidize.
HB 65 - LLC FEE SCHEDULE
HB 65 (Ford) – LLC Fee Schedule
Amends the Limited Liability Company Act. Reduces some fees in the fee schedule for limited liability companies filing documents with the Secretary of State to match the fees for similar documents in the fee schedule for corporations. Effective immediately.
To view complete text, Click Here.
To view bill status, Click Here.
Section 5. The Limited Liability Company Act is amended by changing Section 50-10 as follows:
(805 ILCS 180/50-10)
Sec. 50-10. Fees.
The Secretary of State shall charge and collect in accordance with the provisions of this Act and rules promulgated under its authority all of the following:
(1) Fees for filing documents.
(2) Miscellaneous charges.
(3) Fees for the sale of lists of filings and for
copies of any documents.