Legal Steps to Open a Small Business in Illinois

1. Choose and register a business name: You will need to choose a name for your business that is unique and not already in use by another business in Illinois. Once you have chosen a name, you will need to register it with the Illinois Secretary of State.
2. Decide on a business structure: There are several options for business structures in Illinois, including Sole Proprietorship, Partnership, LLC, and Corporation. Each option has different legal implications and tax obligations, and it is important to choose the structure that fits your business needs. You may want to consult with an attorney or accountant to determine which structure is best for you.
3. Obtain necessary permits and licenses: Depending on the type of business you are starting, you may need to obtain permits or licenses from the state or local government. Some common permits and licenses for small businesses in Illinois include a business license (issued by the city), a sales tax permit (issued by the Illinois Department of Revenue), and a food service permit (issued by the local health department).
4. Register for tax purposes: You will need to register your business with the Illinois Department of Revenue and obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS).
5. Obtain insurance: Depending on the nature of your business, you may need to obtain various types of insurance, such as liability insurance, property insurance, or worker's compensation insurance.
6. Comply with employment laws: If you plan to hire employees, there are various employment laws in Illinois that you will need to comply with, such as minimum wage and overtime laws, anti-discrimination laws, and immigration laws.

It is important to note that there may be additional legal steps that are specific to your particular business, and it is advisable to consult with an attorney to ensure that you are in compliance with all applicable laws and regulations.