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1. What legal steps should I take before starting a small business in Illinois?

Picture of Chris Battis By   ·  1 minute read

As a lawyer, I'd recommend that you take the following legal steps before starting a small business in Illinois:

  1. Choose a Business Structure: The first step in starting a business is choosing a business structure. Illinois recognizes four types of business structures: Sole Proprietorship, Partnership, Corporation, and Limited Liability Company (LLC). Choose a structure that suits your business's needs and goals.
  2. Register the Business: Next, you have to register your business with the Illinois Secretary of State's office. You'll need to file Articles of Incorporation (Corporation), Articles of Organization (LLC), or an Assumed Name Registration (Sole Proprietorship or Partnership).
  3. Obtain Business Licenses: Depending on the type of business you're operating, you may require specific licenses and permits to operate in Illinois. You can obtain this information from the Illinois Department of Commerce and Economic Opportunity.
  4. Obtain an EIN: If your business hires employees, it needs to obtain an Employer Identification Number (EIN). You can do this by filling out an online application on the IRS website.
  5. Register for Tax Purposes: You'll also need to register with the Illinois Department of Revenue and obtain a sales tax permit if you intend to sell products or services. If you're going to hire employees, you'll also need to register for unemployment insurance and workers' compensation insurance.
  6. Draft and Review Contracts: As a business owner, you'll be bound by contracts with your vendors, clients, and partners. It is crucial to draft and review all contracts to ensure that they protect your interests and comply with Illinois laws.

In summary, to start a small business in Illinois, you'll need to choose a business structure, register your business, obtain necessary licenses and permits, obtain an EIN, register for tax purposes, and draft and review contracts. Business owners should also note that these legal steps might vary depending on the type of business you intend to start. Therefore, it is crucial to seek legal advice from a licensed lawyer to ensure compliance with Illinois laws.