STARTING A BUSINESS IN ILLINOIS
Compiled from the Illinois Department of Commerce & Economic Opportunity (DCEO) the Internal Revenue Service (IRS) and other resources.
Where To Start
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FEASIBILITY
Evaluate the potential success of a new or existing business opportunity. CLICK HERE to download the checklist. |
BUSINESS PLAN
A vital component in determining the credibility of a new business opportunity, this can be used as a management tool and is typically required to secure funding. This is an important document to demonstrate your strategic course of action to investors. CLICK HERE to download a business plan workbook published by the SBDC. |
Ownership Structures
Before settling on a business type, consult your legal counsel and accountant for assistance in determining which option is best. CLICK HERE for the Illinois Secretary of State's database of registered corporate names.
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SOLE PROPRIETORSHIP & GENERAL PARTNERSHIP
Someone who owns an unincorporated business by themselves. When a business name is different from the owner(s) full legal name(s), the Illinois Assumed Name Act requires sole proprietorships and general partnerships to register with their local county clerk's office for registration under the Assumed Name Act. Sole proprietors must have a Federal Employer Identification Number (FEIN) if they pay wages to one or more employees, or file any pension or excise tax returns including those of alcohol, tobacco or firearms. Employers Tax Guide List of County Clerks |
LIMITED PARTNERSHIP
A relationship existing between two or more persons who join to carry on a trade or business. A limited partnership is an organization made up of a general partner who manages a project, and limited partners who invest money but have limited liability and are not involved in day-to-day management. Typical limited partnerships are in real estate, oil and gas, equipment leasing, and family partnerships. LP Forms Limited Partnership Section 501 South Second Street Room 357, Howlett Building Springfield, IL 62756 (217) 785-8960 |
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LIMITED LIABILITY COMPANY
A corporate structure whereby the members of the company cannot be held personally liable for the company's debts or liabilities. A limited liability company (LLC) is the non-corporate form of doing business that provides its owners with limited liability, flow-through tax treatment, and operating flexibility through participation in management of the business. LLC Forms Limited Liability Company Section 501 South Second Street Room 351, Howlett Building Springfield, IL 62756 (217) 524-8088 |
LIMITED LIABILITY PARTNERSHIP
If organized as a limited liability partnership (LLP) under a specific section of the General Partnership Act, partners are not liable for the debts, obligations and liabilities of, or chargeable to the partnership arising from negligence, wrongful acts, omissions, misconduct or malpractice committed while the partnership is a LLP. LLP Forms Limited Liability Partnership Section 501 South Second Street Room 357, Howlett Building Springfield, IL 62756 (217) 524-4952 |
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"C" CORPORATION
A legal entity that is separate and distinct from its owners. A corporation is a distinct legal entity and is the most complex form of organization. A corporation may sell shares of stock, which are certificates indicating ownership, to as many people as is desirable. The shareholders then elect a board of directors, which elects a president and other officers who run the company on a day-to-day basis. Among the advantages of corporate formation are limited liability of the shareholder and ease of transferring ownership. If the name of the business includes the word 'Corporation,' 'Inc.,' 'Incorporated' or 'Corp.,' then the business must be incorporated. Corporation Forms Business Services 501 South Second Street Room 328, Howlett Building Springfield, IL 62756 (217) 782-6961 |
"S" CORPORATION
Corporations that elect to pass corporate income, losses, deductions and credits through to their shareholders for federal tax purposes. Electing S Corporation status in an option that must be made through the Internal Revenue Service (IRS) when starting a business. In general, an S Corporation passes through income and expenses to its shareholders, who then report them on their own income tax returns. To qualify for S Corp. status, a corporation must meet several requirements, one of which limits the number of shareholders. Corporation Forms Business Services 501 South Second Street Room 328, Howlett Building Springfield, IL 62756 (217) 782-6961 |
Registering A Business
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REGISTERING A BUSINESS NAME
When the business name is different from the owner's full legal name(s), the Assumed Name Act requires sole proprietorships and general partnerships to register the business name with their county clerk's office. Find Your County Clerk |
INTERNAL REVENUE SERVICE
The Internal Revenue Service (IRS) has a checklist for new businesses, and for selecting business structure. Learn about operating a business with employees, deductions and credits, recordkeeping, and accounting methods. Additional resources include the small business tax calendar, tax topics for businesses, and FAQs. Internal Revenue Service Forms Distribution Center P.O. Box 8902 Bloomington, IL 61702 (800) 829-3676 |
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ILLINOIS DEPARTMENT OF REVENUE
In Illinois, most businesses are required to be registered an/or licensed by the IDOR. If you plan on hiring employees, buy or sell products wholesale, or manufacture goods, you must register with the IDOR. Illinois Department of Revenue Central Registration Division P.O. Box 19030 Springfield, IL 62794 (217) 732-8866 |
LOCAL TAX REGISTRATION & REQUIREMENTS
Some municipalities and counties impose their own taxes in addition to the state and federal taxes that most businesses are responsible for. New businesses should contact their local revenue department to determine if additional taxes apply to their business activities. Many communities restrict advertising, regulate pricing or require zoning permits. Contact your city or county clerk for information on local restrictions. |
LICENSES & PERMITS REQUIRED BY LAW
The Illinois Department of Financial & Professional Regulation (IDFPR) is the primary licensing agency in the state of Illinois for most professions. Individuals must be licensed prior to conducting business as one of the listed professions.
IDFPR's Occupational Listing
The Illinois Department of Financial & Professional Regulation (IDFPR) is the primary licensing agency in the state of Illinois for most professions. Individuals must be licensed prior to conducting business as one of the listed professions.
IDFPR's Occupational Listing
Employer Responsibilities
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UNEMPLOYMENT INSURANCE
A business it typically required to make unemployment insurance contributions to the Illinois Department of Employment Security (IDES) if they have employed one or more workers in each of the 20 or more calendar weeks or paid at least $1,500 in total wages during the calendar quarter. Illinois Department of Employment Security Division of Unemployment Insurance 33 South State Street Chicago, IL 60603 (800) 247-4984 |
FINANCIAL & PROFESSIONAL REGULATION
The Illinois Department of Financial & Professional Regulation (IDFPR) is the main licensing agency in the state of Illinois. IDFPR provides an online database listing every individual licensed who is licensed through IDFPR. GO HERE to learn if an individual is licensed in a certain profession or determine if a license number is valid. |
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ANTI-DISCRIMINATION LAWS
The Equal Employment Opportunity Commission (EEOC) is responsible for the enforcement of all anti-discrimination laws. These laws include Title VII of the Civil Rights Act of 1964, Equal Pay Act, Age Discrimination in Employment Act, Rehabilitation Act of 1973, Title I of the Americans with Disabilities Act, and the Civil Rights Act of 1991. Business owners should acquaint themselves with these laws because they affect the company's hiring practices. EEOC Employer Information EEOC Publications Office P.O. Box 12549 Cincinnati, OH 45212 (800) 669-3362 |
WORKERS' COMPENSATION INSURANCE
Under the Workers' Compensation Act and the Workers' Occupational Diseases Act, an employer is required to provide insurance for accidental deaths, injuries and occupational diseases of employees arising in the course of employment. Temporary workers who normally do not receive company benefits are still provided workers' compensation. Insurance generally is purchased through private companies. Companies can apply to the Workers' Compensation Commission to become self-insured. Illinois Workers' Compensation Commission 100 West Randolph, 8-200 Chicago, IL 60601 (866) 352-3033 |
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LABOR MARKET INFORMATION
The Illinois Department of Employment Security can assist you in finding employees. Find Employees Data & Statistics |
CHILD SUPPORT WAGE WITHHOLDING
The Illinois Department of Healthcare & Family Services is the child support enforcement agency in Illinois. If an employer is served a notice of withholding, it is required by law to withhold a portion of an employee's income for payment of child support. Department of Healthcare & Family Services Division of Child Support Enforcement Employer Verification Unit P.O. Box 19405 Springfield, IL 62794 (217) 782-1380 |
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IMMIGRATION REFORM & CONTROL
The federal Immigration Reform & Control Act of 1986 requires every employer to keep on file a form for every employee certifying that employee's identity and work eligibility. |
REQUIRED POSTERS FOR ILLINOIS EMPLOYERS
The Illinois Department of Labor's website has a list of state and federal posters employers are required to display in the workplace. GO HERE for details on obtaining each poster. |
Trademarks, Patents & Copyrights
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A patent or federal trademark is designated by the U.S. Patent & Trademark Office.
Harold Washington Library Center 400 South State Street Chicago, IL 60605 (312) 747-4450 |
State trademarks, servicemarks and tradenames can be obtained through the Secretary of State's office.
Secretary of State Business Services Trademark Division Room 330, Howlett Building Springfield, IL 62756 (217) 524-0400 |
A copyright is a form of protection provided to an author of original works including literary, dramatic, musical, artistic, sound recordings and certain other intellectual works.
The Copyright Office Library of Congress Washington, D.C. 20559 (202) 707-3000 |
Where To Get Help
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S.C.O.R.E. - Counselors To America's Small Businesses
300 North Kirkwood Road Commerce Bank Building St. Louis, MO 63122 (866) 726-7340 |
IL Metro East Small Business Development Center
SIUE Campus Alumni Hall, Room 2126 Edwardsville, IL 62026 (618) 650-2647 |