---
title: What are the requirements for starting a business in Illinois?
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 March 31, 2023

# What are the requirements for starting a 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

# To Start a Business in Illinois, Follow These Requirements

1. **Choose a Business Entity:** The first step to starting a business in Illinois is to select a business entity such as a sole proprietorship, partnership, corporation, or Limited Liability Company (LLC). Each business entity has its own unique requirements, benefits, and drawbacks.
2. **Name Reservation:** Once a business entity is selected, the business owner should register their business name with the Illinois Secretary of State. The name must be unique and distinguishable from other business names.
3. **Obtain Necessary Licenses:** Depending on the type of business, the owner would need to obtain a business license, permit, or certificate from the Illinois Department of Financial and Professional Regulation. Before commencing any business activity, it is important to ensure that all of the required licenses, permits and certificates are obtained to avoid the risk of fines, penalties and legal consequences.
4. **Tax Registration:** Business owners in Illinois must register their business with the Illinois Department of Revenue to obtain a state tax identification number. This identification number is necessary to pay state taxes and to obtain certain business permits or licenses.
5. **Register with Secretary of State:** The process of registering your business with the Secretary of State involves submitting the Articles of Incorporation or Articles of Organization, which provides information about the business entity, its registered agents, and other administrative details.
6. **Comply with Laws and Regulations:** Business owners in Illinois must comply with state laws and regulations relating to employment, zoning, health and safety, and tax compliance.

It is important to note that specific industries may have additional requirements to legally operate in Illinois. Thus, business owners should consider consulting with an attorney or experienced business advisor for guidance on legal requirements for starting and running a successful business in Illinois.

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