Illinois · Flat income tax, replacement tax
CPA, bookkeeping & fractional CFO services in Illinois
Illinois has a flat personal income tax of 4.95%, and partnerships, S corporations and corporations also pay the personal property replacement income tax at the entity level. CPA Torrance is a CPA-led firm based in Torrance, California that provides bookkeeping, tax planning, tax filing and fractional CFO support to Illinois businesses remotely.
- Serving all of Illinois remotely
- Illinois IL-1065, IL-1120-ST and replacement tax tracked for you
- Monthly reporting included
In short
What is the Illinois replacement tax?
The personal property replacement income tax is an Illinois tax paid by partnerships, S corporations and corporations on their net income, on top of the income tax owners or corporations already pay. Partnerships and S corporations pay it at the entity level, which surprises many owners who expect pass-through income to be taxed only once. Illinois also offers a pass-through entity tax election that can help with the federal SALT cap.
- State income tax
- Flat 4.95%
- State sales tax
- 6.25% + local
- Key business tax
- Personal property replacement tax
- How we serve
- Remotely, statewide
Services in Illinois
What we do for Illinois business owners
From Chicago professional firms and Loop startups to suburban manufacturers and downstate agricultural businesses, Illinois companies need careful entity-level planning. We provide monthly bookkeeping, federal and Illinois tax planning, filings and CFO reporting from one coordinated team.
Bookkeeping Services
- Monthly reconciliations in QuickBooks Online
- Illinois sales tax and Chicago local tax tracking
- Payroll and contractor payment review
- Monthly profit and loss and balance sheet
- Catch-up and clean-up bookkeeping
Tax Planning & Strategy
- Entity and S corporation review
- Illinois PTE tax election analysis
- Federal and state estimated payments
- Multi-state income review
- Year-end tax planning meeting
Tax Filing & Compliance
- Federal business returns (1120, 1120S, 1065)
- Illinois IL-1065, IL-1120-ST and IL-1120 returns
- Owner individual returns
- IRS and state notice help
- Due-date tracking for every filing
Fractional CFO Services
- Cash-flow forecasts
- Budget versus actual reviews
- Margin and pricing analysis
- Lender- and investor-ready reporting
- Growth and hiring plans
Illinois tax planning
Planning around Illinois taxes
Illinois planning has to account for the flat personal rate, the entity-level replacement tax, Chicago local taxes and the PTE election.
Book a 15-min callReplacement tax planning
We include the replacement tax in entity comparisons, since it can change whether an S corporation makes sense.
PTE election
Illinois lets pass-through entities elect to pay tax at the entity level. We model whether it saves you money.
Chicago taxes
Chicago adds its own taxes on some leases, amusements and services. We help you track what applies.
Who we work with
Illinois industries we serve
We work with owner-led businesses across Illinois, with experience in the industries that drive the state economy.
Manufacturing
Job costing, inventory and equipment for Illinois manufacturers.
Logistics and freight
Trucking and warehousing around the Chicago hub.
Financial and professional firms
Advisory firms, agencies and consultants in Chicago.
Food and agriculture
Processors, distributors and agricultural businesses.
E-commerce sellers
Online brands with Illinois sales tax, inventory and multi-channel books.
Professional firms
Consultants, agencies and law firms billing by the hour, project or retainer.
Why Illinois businesses choose CPA Torrance
Areas we cover
Serving businesses across Illinois
Businesses in Chicago, Aurora, Naperville, Joliet, Rockford work in finance, manufacturing, logistics, healthcare and food production. CPA Torrance helps Illinois businesses, including those owned from out of state, stay compliant and organized through remote meetings.
- Chicago
- Aurora
- Naperville
- Joliet
- Rockford
- Springfield
- Peoria
- Schaumburg
- Evanston
- Champaign
- Video meetings on your schedule
- Secure document portal for statements and returns
- Cloud accounting you can see any time
FAQ
Illinois business tax and accounting questions
Not covered here? A 15-minute call gets you a straight answer for your situation.
What financial services can CPA Torrance provide to Illinois businesses?
We provide monthly bookkeeping, federal and Illinois tax planning, business tax filing and fractional CFO services. Everything runs from one set of books, so your bookkeeper, CPA and CFO advisor work from the same numbers.
Do Illinois S corporations pay state tax?
Yes. S corporations pay the 1.5% personal property replacement tax on Illinois net income, and owners pay personal income tax on their share. We factor both into planning.
Should my Illinois business elect the PTE tax?
It can help owners deduct state tax federally despite the SALT cap. Whether it saves money depends on your income and ownership, so we model it each year.
Does Chicago have extra business taxes?
Chicago has several local taxes, including on certain leases, cloud services and amusements. We review your activities and help you comply.
Can CPA Torrance work with Illinois businesses remotely?
Yes. We serve businesses across Illinois, including Chicago, Aurora, Naperville, Joliet, Rockford, Springfield, Peoria, Schaumburg, Evanston and Champaign, through video meetings, a secure document portal and cloud accounting you can see any time. Our office is in Torrance, California.
How do I get started?
Book a 15-minute call or request a free financial assessment. We review your books, tax position and systems and recommend the right mix of support for your Illinois business.
Get your Illinois books and taxes in order.
Book a call to review bookkeeping and tax planning for your Illinois business.