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What legal requirements do I need to fulfill to start a business in Illinois?

Picture of Chris Battis By   ·  1 minute read

To start a business in Illinois, there are several legal requirements that need to be fulfilled.

  1. Choose a Business Structure: The first step is to choose the legal structure under which the business will operate. In Illinois, businesses can operate as Sole Proprietorships, Partnerships, Limited Liability Companies (LLCs), or Corporations. Each structure has its own advantages and disadvantages, and it's important to consult an attorney or accountant to determine which structure is best suited for the business.
  2. Register Your Business: After choosing the business structure, the next step is to register the business with the Illinois Secretary of State. Depending on the business structure, there are specific forms that need to be filed. For example, Sole Proprietorships and Partnerships need to file an Assumed Name Certificate (also known as a DBA) with the county where the business is located. LLCs and Corporations need to file Articles of Organization and Articles of Incorporation, respectively, with the Secretary of State.
  3. Obtain Required Licenses and Permits: Many businesses require licenses and permits to operate legally in Illinois. The requirements vary depending on the type of business, its location, and the products or services it offers. Common licenses and permits include Sales Tax Permit, Retailer's Occupation Tax, and Professional Licenses.
  4. Comply with Taxation Laws: Illinois imposes a variety of taxes on businesses, including corporate income tax, sales tax, and utility tax. Businesses need to register with the Illinois Department of Revenue and comply with all relevant taxation laws.
  5. Obtain Required Insurance: Businesses in Illinois are required to have certain types of insurance, such as workers' compensation insurance and liability insurance, depending on the size and type of the business.

In addition to the above requirements, it's important for businesses to comply with federal laws, such as employment laws, safety regulations, and environmental laws. It's recommended to consult an attorney and accountant to ensure that all legal requirements are met and the business is operating legally and ethically.