Legal Steps for Starting a Business in Illinois

When starting a business in Illinois, there are several legal steps that must be taken to ensure that the business is legally compliant and protected from liability. Here are the legal steps that should be taken:

1. Choose a Business Entity

Illinois allows several types of business entities including sole proprietorship, partnership, limited liability company (LLC), corporation, and cooperative. Each entity has unique tax and liability implications, so it is important to consult with a licensed attorney to choose the entity that best suits your business needs.

2. Register the Business

All businesses operating in Illinois must register with the Illinois Secretary of State. This involves filling out an application, paying a fee, and submitting the necessary documents depending on the chosen entity type.

3. Obtain Necessary Permits and Licenses

Depending on the type of business, it may be necessary to obtain permits and licenses from state and local authorities. For example, a restaurant will need a food service permit, while a retail store will need a sales tax permit. It is important to research and obtain all necessary permits and licenses before beginning operations.

4. Obtain an Employer Identification Number (EIN)

If the business has employees, it is necessary to obtain an EIN from the IRS. This number is used for tax purposes and is required when filing tax returns.

5. Comply with Employment and Labor Laws

Illinois has strict employment and labor laws that businesses must comply with. This includes minimum wage requirements, workplace safety regulations, and anti-discrimination laws.

6. Protect Intellectual Property

If the business has any intellectual property such as trademarks, patents, or copyrights, it is important to take steps to protect them. This can involve registering trademarks and patents with the appropriate government agencies.

Overall, it is important to consult with a licensed attorney when starting a business in Illinois to ensure that all legal requirements are met and the business is protected from liability.