How to Start a Small Business in Chicago
In starting a business, it is necessary to understand the area requirements for opening and operating a business. The city of Chicago requires all businesses run within city limits to register with the city, but there are also state and federal hoops to jump through before you can open your doors.
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Instructions
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Write a business plan. A strategic and thorough business plan needs to present a description of the business, marketing, finances and management. Chicago is a large city with many businesses, so include in your business plan a map for how you intend to make your business stand out. Investigate businesses similar to yours. Is there a need in Chicago for this business? The more detailed you are with your business plan, the more likely you are to have success with your company.
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Consult with a Chicago-area attorney and accountant. Being a newcomer to the Chicago business scene, there are likely many aspects of it that you do not yet know. Consulting seasoned professionals that know the small business landscape and the tax implications and legal realities involved in starting a business within it is a necessity.
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Choose a legal business form and register your company with the state of Illinois. Based off the information you gained from working with your attorney and accountant, choose the form most beneficial to your business model and file the paperwork necessary to form it legally. You can choose either a corporation, general partnership, limited partnership or limited liability company. You can mail the forms to the Illinois Secretary of State or, if time is an issue, file in person for a faster turnaround. The Secretary of State Office in Springfield is about 200 miles away from Chicago.
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Contact the Internal Revenue Service and apply for a Federal Employer Identification Number (FEIN). After forming your business with the state of Illinois, you must register with the federal government for tax purposes before you can open your Chicago business. The process can be completed online.
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Register with the Illinois Department of Revenue (IDOR). All Chicago businesses must register with the IDOR to obtain a tax ID number that can include sales and use tax, unemployment insurance tax and income-tax withholding.
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Obtain a Chicago business license. To operate a business in Chicago, you must register the business with the city. The process is simple and can be completed online.
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