How to Start a Small Business in Illinois

Rural Illinois

Owning a business is a dream for many people. Illinois is one of several states that is witnessing a growing number of small business started each year. Starting your own business is part of the American dream, and many families find that running a business together helps them grow as a family unit. The rewards of business ownership are plentiful, and it all begins with the initial effort of turning your dream into a physical reality. If you have ever had a great business idea and the desire to work for yourself, keep reading to learn how you can start your own small business in Illinois.

Difficulty:

Moderately Easy

Instructions

Things You'll Need

• Business plan
• Funding
• Location for your business

1. Think of a concept for your small business. Consider the things that you enjoy spending time on, then narrow that list down to the ones you could turn into a business. Making money is great, but if you are going to pour your heart and soul into a business, it should also be something that you enjoy. Also consider the aspects that are unique to Illinois, such as the cold weather and abundance of snow during winter, with a long agricultural season during the warmer months.

2. Write a plan for the small business. Having a written business plan is an important element to being successful. Identify what your business will do, what your goals are and how those goals will be accomplished. Identify what markets you will target, both within Illinois and out of state, and come up with a firm plan for how you will penetrate those markets. There is an abundance of business plan templates available online. Download one of these templates and use it as a guide to develop your own plan.

3. Obtain the funding that you need for your small business. Finding a private investor to put up the money would be a dream come true, but this rarely happens in the real world. Most people who start a small business in Illinois get their capital from their savings and from loans made by friends and family. Carrying a credit card balance can help, and most people can secure a small personal loan from their bank to help get things started. The Small Business Administration also guarantees a number of loan types for anyone who wants to start a business in Illinois. Check with your bank for more details on SBA loans.

4. Decide on a business structure. The most common corporate structures for small businesses in Illinois are Sole Proprietorship, Limited Partnership and Limited Liability Company. Other options include Limited Liability Partnership, General Partnership, C Corporation and S Corporation. If you are unsure of which option is best for your business, the Small Business Administration or the Illinois Entrepreneurship Network will be happy to discuss the available options in detail and help you make the right decision.

5. Register your business name with the county clerk. Illinois has a law known as the "Assumed Name Act", which states that any business that does not identify you by name must be registered with the county clerk for the county your business is based in. For example, if you choose to use "Dependable Plumbing" rather than "John Smith Plumbing Company", you will need to register with the county clerk's office and obtain an assumed name certificate.

6. Register with the Illinois Department of Revenue (IDOR). By law, any business that hires employees, buys or sells products or manufactured goods, is required to register their business with the IDOR. Everyone has to pay taxes, and small businesses are no different. You can obtain more details about where and how to register by calling IDOR at [phone].

7. Find a suitable location for your business. The ideal location will depend largely on the type of business you will be operating. Some businesses require office space, others retail space and some will require manufacturing or warehouse space. Think about the needs of the business you have selected and find a location that meets the needs of that business. Fortunately, Illinois is full of good locations regardless of the type of small business you are starting.

Tips & Warnings

• You may also apply for special grants that are available to new small businesses in Illinois. Check with the Small Business Administration to see what options are available to you.

Resources

• State of Illinois Business Portal
• Small Business Administration Business Planner
• Illinois Small Business Start Up Resources
• Illinois Small Business Guide
• Illinois Small Business Development Center