To start a small business in Illinois, one must comply with several legal requirements. The following are some of the necessary steps that need to be taken:
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Choose the Business Structure: The type of business structure chosen will affect the legal requirements that must be met. Business owners should consider forming a limited liability company (LLC), corporation or sole proprietorship.
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Register the Business: In Illinois, all new businesses must register with the Illinois Secretary of State's office. Registration is done online and is not required for sole proprietorships.
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Obtain Necessary Licenses and Permits: Certain types of businesses require special licenses and permits to operate in Illinois. These may include professional licenses, tax licenses or zoning permits depending on the nature of the business.
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Secure Worker’s Compensation Insurance: All businesses in Illinois must have a worker’s compensation insurance policy in place. This policy protects employers against liability for injuries or illnesses that occur on the job.
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Comply with Taxation Requirements: Business owners must obtain a Federal Tax Identification Number (TIN) to pay federal taxes. Illinois businesses are also required to pay state taxes, including sales tax, state income tax, and unemployment insurance tax.
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Comply with Labor and Employment Laws: Employers must comply with state and federal labor laws such as minimum wage, worker safety and discrimination.
It is important for small business owners to note that specific legal requirements may vary depending on the nature of their business. It is recommended that individuals consult with a licensed attorney to ensure proper compliance with all relevant laws and regulations.
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