---
title: What legal steps do I need to take to start a small business in Illinois?
description: Looking to start a small business in Illinois? Legalfaqss is here to help! Our blog covers all the legal steps you need to take to get your business up and running. From registering your business to obtaining necessary permits, we've got you covered. Browse our expert advice today!
image: https://www.legalfaq.ai/hubfs/LegalFAQ/illinois-legal-faqs.jpg
---

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 March 24, 2023

# What legal steps do I need to take to start a small business in Illinois?

![Picture of Chris Battis](https://www.legalfaq.ai/hs-fs/hubfs/battis-mug.jpg?width=50&name=battis-mug.jpg) By  [Chris Battis](https://www.legalfaq.ai/faqs/author/chris-battis)  ·   1 minute read

To start a small business in Illinois, there are several legal steps that need to be taken. Here are some of the important steps:

1. Choose a Business Name: The first step in starting a business in Illinois is to choose a business name. The name should not be similar to the name of another company operating in Illinois, and it should not contain any restricted words or phrases.
2. Register Your Business: After choosing a business name, you need to register your business with the Illinois Secretary of State. Depending on the type of business you are starting, you may need to file for a certificate of formation, a certificate of incorporation, or a certificate of authority.
3. Obtain a Tax ID Number: You will need to obtain a Federal Employer Identification Number (FEIN) from the IRS. This number will be used to file taxes, open a business bank account, and hire employees.
4. Obtain Business Licenses and Permits: Depending on the nature of your business, you may need to obtain specific licenses and permits to operate. For example, if you are starting a food business, you may need to obtain a food service permit from the Illinois Department of Public Health.
5. Understanding Employment Laws: If you plan on hiring employees, you will need to comply with Illinois employment laws. You must make sure that your employees are provided with workers’ compensation insurance, unemployment insurance, and comply with all other labor laws.
6. Set up a Business Bank Account: It is important to set up a separate business bank account to keep personal and business finances separate. This will help with tracking business income and expenses.
7. Consider Liability Protection: Depending on the nature of the business you are starting, you may want to consider liability protection in the form of insurance or incorporation.

Overall, these are some of the important legal steps to starting a small business in Illinois. It's important to seek the advice of an attorney or accountant to make sure you are taking all the necessary steps and complying with all the relevant laws and regulations.

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