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What are the legal requirements for starting a small business in Illinois?

Picture of Chris Battis By   ·  1 minute read

Legal Requirements for Starting a Small Business in Illinois

Starting a small business in Illinois requires several legal steps to be taken. The following are the legal requirements for starting a small business in Illinois:

  1. Choose a Business Structure:

    2. Before starting a business, you need to choose a legal structure for your business. You can choose from various business structures such as Sole Proprietorship, Partnership, Limited Liability Company (LLC), Corporation, and Cooperative. The structure you choose will determine your legal and tax obligations.

  2. Register Your Business:

    3. After choosing your business structure, you need to register your business with the Illinois Secretary of State Office. You can register your business online through the Illinois Business Portal or file paper forms.

  3. Obtain Business Licenses and Permits:

    4. Depending on the type of business you are starting, you may need to obtain additional business licenses and permits at the state, county, and local levels. The Illinois Department of Commerce and Economic Opportunity provides a helpful guide to the permits and licenses required for different types of businesses.

  4. Obtain an Employer Identification Number:

    5. Most businesses need an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). An EIN is a unique number that identifies your business for tax and reporting purposes.

  5. Register for Illinois State Taxes:

    6. If your business has employees, you need to register for Illinois State taxes with the Illinois Department of Revenue. You will also need to fill out Form IL-W-4 and provide it to each employee.

  6. Comply with Employment Laws:

    7. If your business has employees, you need to comply with Illinois employment laws. This includes laws related to minimum wage, workers' compensation, unemployment insurance, and workplace safety.

In conclusion, starting a small business in Illinois requires several legal steps to be taken. The legal requirements include choosing a business structure, registering the business, obtaining business licenses and permits, obtaining an EIN, registering for Illinois State Taxes, and complying with employment laws. It is recommended to consult with an attorney or a business advisor to ensure compliance with all the legal requirements.