Skip to content
Ask a question
All posts

What legal steps do I need to take before starting a business in Illinois?

Picture of Chris Battis By   ·  1 minute read

If you are looking to start a business in Illinois, there are certain legal steps you need to take to ensure that your business complies with state laws and regulations. Here are some of the most important ones:

  1. Choose a business structure:

    Before you can register your business, you need to decide on a legal structure. The most common options are sole proprietorship, partnership, limited liability company (LLC), and corporation. Each has its own advantages and disadvantages, so it's important to carefully consider which one is right for you.

  2. Register your business:

    Once you have chosen a business structure, you need to register your business with the Illinois Secretary of State. This process involves filing the appropriate paperwork, paying a fee, and obtaining any necessary licenses or permits.

  3. Obtain a tax ID number:

    All businesses are required to have a tax identification number, which is used to identify your business for tax purposes. You can obtain a Tax ID number from the IRS.

  4. Obtain any necessary permits or licenses:

    Depending on the type of business you are starting, you may need to obtain certain permits or licenses to operate legally in Illinois. For example, restaurants will need a health permit, and contractors may need a licensing through Illinois Department of Professional Regulations.

  5. Comply with all employment laws:

    If you are planning to hire employees, you need to comply with various employment laws that govern workers' rights. This includes minimum wage laws, age requirements for certain jobs, workers compensation insurance, and more.

  6. Protect your intellectual property:

    If your business has unique designs, logos, or other intellectual property, it's important to protect these through trademarks or copyrights.

It's important to note that these steps are not exhaustive and may vary depending on the specific nature of your business. It is recommended that you work with an attorney or advisor to ensure that you comply with all relevant laws and regulations.