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

Picture of Chris Battis By   ·  1 minute read

To start a small business in Illinois, there are several legal requirements that must be met. The following are the steps necessary to start a small business in Illinois:

  1. Choose a business structure: Before registering your business, you need to determine which business structure is best for your needs. The most common business structures include a sole proprietorship, partnership, limited liability company (LLC), and corporation.
  2. Register your business: Once you have chosen a business structure, you need to register your business with the Illinois Secretary of State. You will need to provide information about your business, including the name, location, and structure.
  3. Obtain necessary licenses and permits: Depending on your business type and location, you may need to obtain additional licenses and permits in order to operate legally. For example, if you are starting a food service business, you will need to obtain a food service permit from the local health department.
  4. Obtain an EIN: An EIN, or Employer Identification Number, is a unique identification number assigned by the IRS to businesses for tax purposes. You will need to obtain an EIN if you plan to hire employees or file taxes.
  5. Register for state and local taxes: You will need to register for state and local taxes in order to legally do business in Illinois. This includes sales tax, income tax, and any other applicable taxes.
  6. Obtain business insurance: While it is not required by law, it is recommended that small businesses obtain business insurance to protect against any potential legal or financial issues.

It is important to note that the requirements for starting a small business may vary depending on the type of business and location. Additionally, some industries may have specific regulations and licensing requirements that must be met.

If you are unsure about the legal requirements for starting your small business in Illinois, it is recommended that you consult with a licensed attorney or accountant who is familiar with the laws and regulations in the state.