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Tuesday, July 7, 2015
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Business Registration FAQ
How is ‘business entity’ defined in this act?
Business entity is defined in 30 ILCS 500/50-37 as any entity doing business for profit, whether organized as a corporation, partnership, sole proprietorship, limited liability company or partnership, or otherwise.
What is an ‘affiliated person’ as defined in this act?
“Affiliated person” means (i) any person with any ownership interest or distributive share of the bidding or contracting business entity in excess of 7.5%, (ii) executive employees of the bidding or contracting business entity, and (iii) the spouse of any such persons. “Affiliated person” does not include a person prohibited by federal law from making contributions or expenditures in connection with a federal, state, or local election.
What is an ‘affiliated entity’ as defined in this act?
“Affiliated entity” means (i) any corporate parent and each operating subsidiary of the bidding or contracting business entity, (ii) each operating subsidiary of the corporate parent of the bidding or contracting business entity, (iii) any organization recognized by the United States Internal Revenue Service as a tax-exempt organization described in Section 501(c) of the Internal Revenue Code of 1986 (or any successor provision of federal tax law) established by the bidding or contracting business entity, any affiliated entity of that business entity, or any affiliated person of that business entity, or (iv) any political committee for which the bidding or contracting business entity, or any 501(c) organization described in item (iii) related to that business entity, is the sponsoring entity. “Affiliated entity” does not include an entity prohibited by federal law from making contributions or expenditures in connection with a federal, state or local election.
What is an ‘executive employee’ as defined in this act?
“Executive employee” means (i) the President, Chairman, or Chief Executive Officer of a business entity and any other individual that fulfills equivalent duties as the President, Chairman of the Board, or Chief Executive Officer of a business entity; and (ii) any employee of a business entity whose compensation is determined directly, in whole or in part, by the award or payment of contracts by a State agency to the entity employing the employee. A regular salary that is paid irrespective of the award or payment of a contract with a State agency shall not constitute “compensation” under item (ii) of this definition. “Executive employee” does not include any person prohibited by federal law from making contributions or expenditures in connection with a federal, state, or local election.
Is my business required to register with the Board
as a business entity?
Pursuant to Public Act 95-971, effective January 1, 2009, any business entity meeting the above definition, whose existing State contracts, or whose bids or proposals on State contracts exceed $50,000, must electronically register with the State Board of Elections. For questions regarding who is required to register and what is to be reported on the Registration Form, please review Public Act 95-971, as amended by Public Act 96-0848, 97-0411 and 97-0895, the Board rules and regulations, and the Fact Sheet currently posted on the Illinois Procurement Bulletin at
. For further guidance, please contact the legal counsel for your business entity or refer to the Act and the Administrative Rules found on this site, to assist you in making that determination.
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