What are the legal requirements and steps that need to be taken for starting a new business in Illinois?

To start a new business in Illinois, there are several legal requirements and steps that need to be taken. Some of the critical requirements and steps that should be taken include:

1. Choose a Business Structure: Before starting any business, it’s essential to choose an ownership structure that suits your business needs. The most common business structures include Sole Proprietorship, Partnership, Limited Liability Company (LLC), Corporation, and S-Corporation. Each business structure has its unique legal requirements and tax implications.
2. Name the Business: The next step is to choose and register a business name with the Illinois Secretary of State's Office. The chosen business name should not be similar to that of an existing company, and it should comply with the Illinois Business Corporation Act or Illinois LLC Act.
3. Register the Business with the Secretary of State: After choosing a business name, it’s essential to file an Articles of Incorporation (for corporations) or Articles of Organization (for LLCs) with the Illinois Secretary of State's Office. This will register the business with the state and make it legally eligible to do business in Illinois.
4. Obtain Necessary Permits and Licenses: Depending on the nature of the business, some types of businesses require permits and licenses to operate legally. For instance, a restaurant will need a food service permit while contractors need a contractor’s license. Business owners should check the Illinois Department of Commerce and Economic Opportunity website to find out what permits and licenses they need.
5. Get an EIN: Most businesses need an Employer Identification Number (EIN), which is a unique nine-digit number issued by the Internal Revenue Service (IRS). This number is used to identify the business for tax purposes and is required to open a business bank account and hire employees.
6. Register for Illinois Taxes: All businesses operating in Illinois are subject to state tax obligations. Business owners should visit the Illinois Department of Revenue website to register for state taxes, such as sales tax, withholding tax, and unemployment insurance tax.
7. Obtain Business Insurance: Business insurance protects the business and its assets. Business owners should consider purchasing insurance policies such as general liability insurance, property insurance, and workers' compensation insurance.

It’s crucial to note that the legal requirements for starting a business in Illinois can vary depending on the type of business and location. Business owners should research and comply with all applicable laws and regulations relevant to their business type and location. They can consult with a qualified business attorney to ensure they have met all legal requirements and to answer any additional questions they may have.