Steps to Start a Small Business in Illinois

Starting a small business in Illinois requires taking several legal steps. Here are the steps you need to follow:

1. Choose a Business Structure

You will need to decide on a business structure, such as a sole proprietorship, partnership, LLC or corporation. Your choice of structure will determine the legal and tax requirements that apply to your business. You will need to register your business with the Illinois Secretary of State's office.

2. Register with the Illinois Department of Revenue

All businesses operating in Illinois must register with the Department of Revenue and obtain a taxpayer ID number. You will also need to collect and pay state sales tax if you plan to sell goods or services in Illinois.

3. Obtain Necessary Permits and Licenses

Depending on the nature of your business, you may need to obtain additional permits and licenses from state, county or municipal authorities. For example, a restaurant may need a food service permit or a liquor license.

4. Create and File Necessary Documents

You may need to file documents with local or state authorities, such as a fictitious business name statement, articles of incorporation or organization, or a business license application.

5. Obtain Necessary Insurance

Depending on the type of business you are starting, you may need to obtain insurance coverage. For example, a contractor may need liability or workers' compensation insurance.

6. Establish an Accounting System

You will need to establish an accounting system to accurately track your business's income and expenses, and to comply with tax reporting requirements.

7. Understand Your Legal Obligations as an Employer

If you plan to hire employees, you will need to comply with federal and state labor laws, such as minimum wage and anti-discrimination laws.

Note that the steps required to start a small business in Illinois may vary depending on the specific nature of the business and the location where it will operate. It is recommended to consult with a licensed attorney or business consultant for personalized advice and guidance.