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

The legal requirements for starting a small business in Illinois depend on the type of business entity you want to form. In Illinois, the most common types of business entities are sole proprietorships, partnerships, limited liability companies (LLCs), and corporations. Each type of business entity has different legal requirements and benefits.

Sole proprietorships and partnerships:

If you want to start a sole proprietorship or partnership in Illinois, you do not need to file any paperwork with the state. However, you may need to obtain local business licenses or permits, depending on the type of business you are starting and where it is located. You may also need to register your business name if it is different from your personal name, and obtain an Employer Identification Number (EIN) from the IRS if you have employees.

Limited Liability Companies (LLCs):

If you want to form an LLC in Illinois, you will need to file articles of organization with the Illinois Secretary of State and pay a filing fee. The articles of organization must include the name and address of the LLC, the name and address of the registered agent, and the names and addresses of the LLC's members or managers. You will also need to obtain any necessary local business licenses or permits and register your LLC with the Illinois Department of Revenue for tax purposes.

Corporations:

If you want to form a corporation in Illinois, you will need to file articles of incorporation with the Illinois Secretary of State and pay a filing fee. The articles of incorporation must include the name and address of the corporation, the name and address of the registered agent, and the number of shares the corporation is authorized to issue. You will also need to obtain any necessary local business licenses or permits and register your corporation with the Illinois Department of Revenue for tax purposes.

Limitations or exceptions:

The legal requirements for starting a small business in Illinois can vary depending on the type of business you are starting and where it is located. Some businesses may require special licenses or permits, such as restaurants, bars, or childcare facilities. Additionally, certain industries may have additional regulations or requirements that need to be met.

Further action:

Before starting a small business in Illinois, it is recommended that you consult with a licensed attorney, accountant, or other professional to ensure that you comply with all legal requirements and regulations. You may also want to consider obtaining liability insurance to protect your business from potential lawsuits or claims.