Skip to content
Ask a question
All posts

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

Picture of Chris Battis By   ·  1 minute read

The legal requirements for starting a small business in Illinois vary depending on the type of business and the structure you want for your business. However, there are some general steps that you must follow when starting a small business in Illinois:

  1. Choose a Business Name: The first step to starting a business in Illinois is choosing a unique name for your business. You can search the Illinois Secretary of State’s website to ensure that your desired name is available.
  2. Choose a Business Structure: Next, you must choose a business structure. The most common business structures in Illinois are sole proprietorships, partnerships, limited liability companies (LLCs), and corporations. Each type of business structure has its own legal requirements and benefits.
  3. Register Your Business: Once you have chosen your business structure, you must register with the Illinois Secretary of State’s office. This involves filing the necessary paperwork, paying a fee, and obtaining any required licenses or permits.
  4. Obtain an EIN: You must obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). This number is used to identify your business for tax purposes.
  5. Register for Taxes: Depending on the nature of your business, you may need to register for state and local taxes. In Illinois, this typically involves registering for sales and use tax.
  6. Obtain Business Licenses and Permits: Finally, you may need to obtain additional licenses and permits from state and local governments depending on the type of business you operate.

It is important to note that there may be additional legal requirements depending on the type of business you start. For example, if your business involves the sale of alcohol, you may need a liquor license. Additionally, if you plan to hire employees, you will need to comply with various state and federal employment laws.

To ensure that you comply with all legal requirements, it is recommended that you consult with a licensed attorney experienced in business law. They can provide you with guidance specific to your business and help you navigate the legal requirements of starting a small business in Illinois.