---
title: What are the legal requirements for starting a new business in Illinois?
description: Looking to start a new business in Illinois but not sure about the legal requirements? Legal Faqs has got you covered with everything you need to know about licenses, permits, and regulations in the state. Stay informed and ensure your business is on the right track from the start.
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 March 24, 2023

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

![Picture of Chris Battis](https://www.legalfaq.ai/hs-fs/hubfs/battis-mug.jpg?width=50&name=battis-mug.jpg) By  [Chris Battis](https://www.legalfaq.ai/faqs/author/chris-battis)  ·   1 minute read

In Illinois, there are several legal requirements for starting a new business. These requirements vary depending on the type of business entity you plan to establish.

1. Choose a business entity: The first step in starting a new business in Illinois is to choose a business entity. Illinois recognizes several types of business entities including Sole Proprietorship, Partnership, Limited Liability Company (LLC), Corporation, and Non-Profit Corporation.
2. Register your business: All businesses must register with the Illinois Secretary of State's office. Depending on the type of business entity you choose, you will need to file appropriate paperwork with the Secretary of State. For example, if you choose to form an LLC, you will need to file Articles of Organization.
3. Obtain necessary licenses and permits: Depending on the type of business you plan to establish, you may need to obtain various licenses and permits. For example, if you plan to open a food service establishment, you will need to obtain a food service establishment license from the Illinois Department of Public Health.
4. Obtain an Employer Identification Number (EIN): If you plan to hire employees, you'll need to obtain an Employer Identification Number (EIN) from the Internal Revenue Service.
5. Register for Illinois Taxes: All businesses must register with the Illinois Department of Revenue to collect and remit state taxes.
6. Obtain Business Insurance: Although not required by law, obtaining business insurance is highly recommended to protect yourself and your new business from financial liabilities that may arise.

It is important to note that these are general requirements, and there may be additional requirements or exceptions for your specific type of business. Before starting a new business in Illinois, it is highly recommended to consult with a licensed attorney or business advisor to ensure compliance with all applicable laws and regulations.

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