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

Picture of Chris Battis By   ·  1 minute read

As a lawyer, if you are planning to start a business in Illinois, you must follow certain legal steps to ensure compliance with state laws and regulations. Below are the legal steps you need to take before starting a business in Illinois:

  1. Choose a Business Entity: Determine the type of business entity you want to establish. Illinois recognizes several business entity types, including sole proprietorships, partnerships, limited liability companies (LLC), and corporations.
  2. Choose a Business Name: Choose a unique name for your business that is not already taken. You can check the availability of the name through the Illinois Secretary of State's website.
  3. Register Your Business: Register your business entity with the Illinois Secretary of State by filing the necessary forms and paying the required fees. You will need to provide details such as the business name, address, and the names of the owners.
  4. Obtain a Tax ID Number: Apply for an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). This number is required for tax purposes and to open a bank account in the company's name.
  5. Obtain Business Licenses and Permits: Research and obtain any necessary business licenses and permits required by the state, county or city in which you plan to operate.
  6. Comply with Employment Laws: As an employer, you must comply with all state and federal employment laws. These include but are not limited to minimum wage and overtime requirements, anti-discrimination laws, and employee classifications.
  7. Obtain Business Insurance: Protect your business by obtaining appropriate insurance coverage, which may include liability insurance, property insurance, and workers' compensation insurance.
  8. Create Legal Documents: Draft the necessary legal documents for your business, including contracts with customers, vendors, and employees, as well as any leases or rental agreements.
  9. Set Up Accounting and Record-Keeping Systems: Establish an accounting and record-keeping system to track your business transactions and expenses.

It is important to note that these steps may vary depending on the type of business you plan to form and the industry in which you operate. Thus, it is recommended to seek legal assistance from a licensed attorney to ensure compliance with state and federal laws and regulations.