---
title: What are the legal requirements for starting a small business in Illinois?
description: Looking to start a small business in Illinois but don't know the legal requirements? Look no further than Legal Faqs! Our comprehensive guide will walk you through everything you need to know to get your business up and running in accordance with Illinois law.
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 April 16, 2023

# What are the legal requirements for starting a small 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

As a lawyer, I can advise you on the legal requirements for starting a small business in Illinois. To start a small business in Illinois, you need to complete certain legal requirements, which are outlined below:

1. **Choose a Legal Structure:** The first step in starting a small business is to choose the legal structure of your business. The common types of business structures in Illinois are *Sole Proprietorship*, *Partnership*, *Limited Liability Company (LLC)*, and *Corporation*. Each of these legal structures has its requirements, advantages, and disadvantages, and it is essential to choose the structure that best suits your business needs and goals.
2. **Register Your Business:** After choosing the legal structure of your business, you need to register your business with the Illinois Secretary of State. You can register your business online, by mail, or in-person. The registration process includes filing *Articles of Incorporation or Organization*, paying registration fees, and obtaining necessary permits and licenses.
3. **Obtain Necessary Permits and Licenses:** Depending on the type of business you are starting, you may need to obtain specific permits and licenses from federal, state, and local authorities. For instance, if you are starting a restaurant or food-related business, you need to obtain a *food service sanitation certificate* from the Illinois Department of Public Health.
4. **Obtain Federal Tax Identification Number:** You need to apply for a *Federal Tax Identification Number (EIN)* from the Internal Revenue Service (IRS). An EIN is a unique nine-digit number that identifies your business for tax purposes.
5. **Comply with State and Federal Tax Laws:** As a business owner, you need to comply with state and federal tax laws. You may be required to collect sales tax, pay income tax, and file tax returns with the Illinois Department of Revenue and the IRS.
6. **Understand Employment Laws:** If you plan to hire employees for your business, you need to comply with state and federal employment laws. You need to obtain necessary employer identification numbers, pay payroll taxes, and comply with employment regulations such as minimum wage and overtime laws.

It is important to note that these legal requirements are subject to change, and you may need to consult a licensed attorney for specific advice and guidance. Additionally, there may be other legal requirements that apply to your specific business based on its type, industry, and location. It is advisable to research and understand these requirements before starting your business.

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