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What legal steps should I take if I want to start a business in Illinois?

Picture of Chris Battis By   ·  1 minute read

To legally start a business in Illinois, there are several steps you should take:

  1. Choose a business structure: Before you can register your business, you need to decide on a business structure. The most common business structures in Illinois are sole proprietorship, partnership, limited liability company (LLC), and corporation. Each structure has its own advantages and disadvantages, so it's important to research each one and choose the one that best fits your needs.

  2. Register your business name: If you plan to operate your business under a name other than your own, you will need to register your business name with the Illinois Secretary of State. This is also known as getting a "Doing Business As" (DBA) name.

  3. Obtain necessary permits and licenses: Depending on the type of business you are starting, you may need to obtain certain permits and licenses from state and local authorities. For example, if you plan to sell alcohol, you will need a liquor license. You can find information on the permits and licenses you need from the Illinois Business Portal.

  4. Register your business with the Illinois Secretary of State: All businesses in Illinois must be registered with the Secretary of State. You will need to file articles of incorporation if you are starting a corporation, articles of organization if you are starting an LLC, or a certificate of partnership if you are starting a partnership.

  5. Obtain an Employer Identification Number (EIN): An EIN is a unique identifier assigned to your business by the Internal Revenue Service (IRS). You will need an EIN to open a business bank account, hire employees, and file taxes.

  6. Register for Illinois taxes: Depending on your business structure and the type of business you are starting, you may need to register for state and local taxes. You can register for Illinois taxes through the Illinois Department of Revenue.

  7. Obtain insurance: Depending on your business, you may need to obtain certain types of insurance to protect your business and comply with legal requirements.

It's important to note that there may be additional steps or requirements depending on the nature of your business and the location where you are starting it. Consulting with a licensed attorney and/or a business advisor can help ensure that you comply with all legal requirements and protect your interests.