How to Open a Small Business in Illinois

Starting a small business in Illinois requires certain steps be followed.

Starting a small business in Illinois is a process that involves key steps that need to be taken in order to get things up and running properly. The state of Illinois requires that certain legal requirements need to be met and obtained prior to operating a business in the state. Understanding how to start a business alleviates some of the pressures associated with going in to business for yourself.

Things You'll Need

• Business plan
• Banking account information
• Tax returns
• Identification information

Instructions

1. Develop or update your business plan. Make changes to the plan to reflect current economic conditions and business goals.

2. Choose a name for your business. Register the name of the business, if the business is named anything other than your complete legal name, with the county clerk in the Illinois county where you live.

3. Obtain a business tax identification number from the Internal Revenue Service. Contact the Illinois Department of Revenue (IDOR) to request an application to have your business registered. The State of Illinois requires that a business that will have employees or sell goods or services must be registered with the IDOR. Ask the IDOR if a business license is also required for your type of business. Apply and secure all licenses and registrations required by the IDOR. Contact the Illinois Division of Professional Regulation (IDPR) to inquire as to whether or not your business needs additional licensing. Apply for all required license through all agencies and departments. (see Resources)

4. Open a business bank account at a financial institution in the state of Illinois. Use your new business name, IRS issues tax identification number and business address as filed with the IDOR for the bank account.

5. Contact your local or county tax collection agency and verify that you have all licenses and registrations required to operate your business. Set up a local tax account with the county where your business is located.

6. Obtain insurance for your business. Contact your insurance agent or broker and get insurance policies for workers compensation and unemployment insurance that is required by the state of Illinois. Contact the Illinois Department of Employment Security and request information on unemployment withholding accounts, payments and information (see Resources).

7. Secure financing for your business. Hire employees and market your goods and services. Run your small business by following the steps and procedures outlined in your business plan.

References

• State of Illinois: Business Portal
• U.S. Small Business Administration: Illinois Small Business Guide
• Illinois Department of Commerce and Economic Opportunity

Resources

• Illinois Department of Revenue (IDOR)
• Illinois Division of Professional Regulation (IDPR)
• Illinoid Department of Employment Security