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What steps do I need to take in order to start a small business in Illinois?

Picture of Chris Battis By   ·  1 minute read

To start a small business in Illinois, you need to follow the following steps:

  1. Choose a Business Structure: You must choose the type of business you will be forming, such as a limited liability company (LLC), partnership, corporation, or sole proprietorship. The type of business structure you choose will determine the tax filing requirements, liability protection, and ownership structure of your business.
  2. Register Your Business: Your business must be registered with the Illinois Secretary of State. The registration process involves filing the Articles of Incorporation or Articles of Organization for LLCs, along with a filing fee. You must also obtain an Illinois Business Tax Identification Number through the Illinois Department of Revenue.
  3. Obtain Licenses and Permits: Depending on the type of business, you may need to obtain additional licenses and permits from municipal, county, or state agencies. Some of the commonly required licenses and permits include sales tax permits, food service permits, and professional licenses.
  4. File Taxes: Your business must pay taxes to both the federal and state government. You must obtain an Employer Identification Number (EIN) from the IRS to file federal taxes. In addition, you must file the necessary state tax forms, such as the Illinois Income Tax Return and the Illinois Business Income Tax Return.
  5. Obtain Insurance: It is important to have insurance coverage for your business to protect against potential liability and losses. Depending on the type of business, you may need commercial general liability insurance, workers' compensation insurance, property insurance, or professional liability insurance.

It is important to note that the process of starting a small business in Illinois can involve several complex legal issues, and there may be limitations or exceptions depending on the specific circumstances of your business. It is recommended that you consult with a licensed attorney in Illinois to ensure that you are complying with all applicable laws and regulations.