What legal steps do I need to take to start a small business in Illinois?
Legal Steps to Start a Small Business in Illinois
Starting a small business in Illinois requires several legal steps that must be followed to ensure compliance with state laws and regulations. Below are some of the necessary legal steps that need to be taken:
- Choose a business structure: The first step in starting a small business is to choose a legal structure that best suits your needs. The most common business structures in Illinois are sole proprietorship, partnership, limited liability company (LLC), and corporation.
- Register your business: After deciding on the legal structure, the next step is to register your business with the Illinois Secretary of State. For example, if you decide to form a corporation or LLC, you must file Articles of Incorporation or Articles of Organization respectively.
- Obtain required permits and licenses: Depending on the type of business, you may need to obtain certain permits and licenses to operate legally. Some examples include zoning permits, sales tax permits, and professional licenses.
- Register for taxes: All businesses in Illinois are required to register for state taxes with the Illinois Department of Revenue (IDOR). Generally, businesses are liable for state income tax, sales tax, and unemployment insurance taxes.
- Open a business bank account: It is recommended to open a separate bank account for your business transactions. This will help to keep your personal and business finances separate.
- Protect your intellectual property: If your business involves unique intellectual property such as trademarks, patents or copyrights, you should take steps to protect it.
In summary, starting a small business in Illinois requires careful attention to the legal steps and procedures involved. Failure to follow the proper procedures may result in financial penalties or legal sanctions. It is advisable to consult with a licensed attorney or financial consultant for guidance throughout the process.