To work as an Illinois remittance agent, you need a license from the Secretary of State, a corporate surety bond of at least $20,000 for each business location, a completed prelicensing education course, and a $50 annual fee per location. The Illinois remittance agent license lets you collect money from the public and forward it to the state for vehicle titles, registration plates, taxes, and registration fees.1Illinois General Assembly. Illinois Code 625 ILCS 5/1-171.01a – Remittance Agents Operating without the license is a Vehicle Code violation.2FindLaw. Illinois Code 625 5/3-903
Who Needs This License
The Vehicle Code defines a remittance agent as anyone who accepts money from the public to forward to the State of Illinois for registration plates, titles, taxes, or registration fees. It also covers anyone who charges the public for consulting or advising on those matters, even as a sideline to other work.1Illinois General Assembly. Illinois Code 625 ILCS 5/1-171.01a – Remittance Agents Currency exchanges, auto dealerships, and small businesses that handle title and registration paperwork are the common examples.
What Goes in the Application
The application is a sworn, written document filed with the Secretary of State. You must include your business name and address, every location where you plan to operate, your occupation, a disclosure of any civil or criminal litigation history, and a statement confirming you have no violations under the Retailers’ Occupation Tax Act or certain Vehicle Code provisions in the past three years. The Secretary of State can also ask for any additional business information it considers relevant.3Justia Law. Illinois Code 625 ILCS 5 Chapter 3 – Certificates of Title and Registration of Vehicles – Section 3-904
Two people who live in your city or town must submit affidavits stating they have known you for at least two years and can vouch for your moral character, honesty, and business integrity. If the applicant is a business entity, every officer or member needs those affidavits.3Justia Law. Illinois Code 625 ILCS 5 Chapter 3 – Certificates of Title and Registration of Vehicles – Section 3-904
You also have to include a certificate from the prelicensing education program required under Section 3-904.5 of the Vehicle Code. Without it, the application is incomplete and the state will not process it.3Justia Law. Illinois Code 625 ILCS 5 Chapter 3 – Certificates of Title and Registration of Vehicles – Section 3-904
The administrative code adds a notarization requirement and a disclosure of whether you, any immediate family member, or any of your employees works for the Secretary of State. You must provide a list of all employees and authorize the state to run background checks on each of them.4Legal Information Institute. Illinois Administrative Code Title 92, Section 1019.10 – Application for Remittance Agency License and Renewal A family member on the Secretary of State’s payroll is grounds for suspension, so the question is not a formality.
The Fee
Each application carries a $50 fee per location. File after July 1 and the fee drops to $25. Renewals cost $50 per location.5Justia Law. Illinois Code 625 ILCS 5 Chapter 3 – Certificates of Title and Registration of Vehicles – Section 3-905 Multi-location agents pay separately for each.
The Surety Bond
You must post a corporate surety bond for every business location. The floor is $20,000. If you forwarded more than $20,000 to the state during any 15-day stretch in the prior year, the bond has to match that higher peak instead. The rule is the greater of the two.4Legal Information Institute. Illinois Administrative Code Title 92, Section 1019.10 – Application for Remittance Agency License and Renewal
The bond must come from a bonding or insurance company authorized to do business in Illinois, which the state verifies against a Department of Insurance list. You do not pay the full bond amount out of pocket. You pay an annual premium, generally 1% to 3% of the bond value depending on your credit and financial profile. For a $20,000 bond, that works out to roughly $200 to $600 a year for applicants with decent credit, though minimum premiums and fees can push the floor a bit higher.
Where to Send the Package
Once your application, bond, affidavits, education certificate, and fee are assembled, send the whole package to:
Office of the Secretary of State
Vehicle Services Department
Howlett Building, Room 069
Springfield, Illinois 627564Legal Information Institute. Illinois Administrative Code Title 92, Section 1019.10 – Application for Remittance Agency License and Renewal
Staff reviews the submission to confirm you are financially sound and have good business integrity. If approved, you receive an official license that must be displayed at the business location. Questions on new or renewal applications go to the Secretary of State’s office at 217-782-5354.6Illinois Secretary of State. Dealers and Remitters
Keeping the License Active
Every remittance agent license expires on December 31 of the year it was issued. Renewal applications must be filed before November 15 to avoid a gap, with the same $50-per-location fee and a current surety bond.5Justia Law. Illinois Code 625 ILCS 5 Chapter 3 – Certificates of Title and Registration of Vehicles – Section 3-905 Letting a license lapse and continuing to operate is a Vehicle Code violation.
You also have to maintain a detailed record of every remittance transaction for at least three years. Each entry needs the customer’s address, the amount collected, and the date the funds were forwarded to the Secretary of State. State inspectors can show up during normal business hours to review these records at your location, so they must be kept on-site and accessible.7Legal Information Institute. Illinois Administrative Code Title 92, Section 1019.40 – Recordkeeping Requirements Incomplete or missing records are one of the most common triggers for suspension.
How You Can Lose the License
The Secretary of State can suspend or revoke a license for violating any provision of the Vehicle Code or the Secretary’s administrative rules. Notice goes out by certified mail, and you can request a hearing to contest the order.8FindLaw. Illinois Code 625 5/3-907
Suspension
A license will be suspended if the agent fails to keep required records, fails to provide information the state requests, fails to file the required bond, or is found to be (or to have an immediate family member who is) an employee of the Secretary of State. Suspensions last 30 days, during which the state audits the business. Come back into compliance and the license is restored. Fail to, and revocation follows.9Legal Information Institute. Illinois Administrative Code Title 92, Section 1019.30 – Suspension and Revocation of Remittance Agents Licenses
Revocation
Revocation carries a minimum one-year ban. The state will revoke a license if the agent:
- Operates while suspended.
- Fails to submit the correct amount within 10 days of a written request after a check bounces or an electronic payment is dishonored.
- Commits fraud or forgery while operating as a remittance agent.
- Is convicted or found in violation under the Use Tax Act, the Service Occupation Tax Act, or certain chapters of the Vehicle Code.
- Accumulates two or more suspensions in a single year.
- Is convicted of any felony, whether or not it relates to the remittance business.
The revocation notice goes out by certified mail and takes effect 10 days later. To get a license back after revocation, you have to request an administrative hearing and convince the Secretary of State that you will comply with the law and that you possess good business integrity.9Legal Information Institute. Illinois Administrative Code Title 92, Section 1019.30 – Suspension and Revocation of Remittance Agents Licenses