How to Open a Business in Illinois
Your passion should guide the type of business you open. Once you get past the excitement of becoming an entrepreneur and choosing a business name, however, a number of administrative tasks await you. Before you start a business in Illinois, be prepared for piles of paperwork. From taxes to business plans, it's possible to learn more about business than that which applies to your trade. Understanding what the state of Illinois requirements are for opening a business is half the battle.
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Instructions
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Administrative
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Create a business plan. Provide information on products and services your business will provide, marketing plans and markets, ownership details, startup costs, and projected expenses and personnel needs. Your business plan will help you secure funds and guide you in opening and operating your business. Buy a template online, or contact an Illinois Small Business Development Center (SBDC) if you need additional help. Locate the nearest center by calling 800-252-2923 or TDD 800-785-6055.
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Choose a business structure. An accountant or attorney can help you choose from the following types of structures applicable to Illinois businesses: "C" corporation, "S" corporation, sole proprietorship, general partnership, limited partnership, limited liability partnership (LLP) or limited liability company (LLC). Business structure affects your ability to borrow business funds, your personal liability, the type of business tax return you file and the amount you pay, and how much paperwork will be required to open your business. Forms are available at various state offices, depending on your business structure.
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Incorporate your business. Obtain forms from the Illinois Secretary of State website, and pay any applicable fees. You need to pay an annual fee and file a yearly report in addition to the initial incorporation fee and application. Your business structure determines which form you use and the amount of your fee.
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Obtain any applicable licenses. Depending on the type of business, licensing may be obtained from the state, county or city in which you're opening a business. Contact your city or town clerk to find out what licenses and/or permits you need. In Illinois, inspections may be necessary to obtain licensing for daycare centers, restaurants and other facilities carrying higher liability risks, so plan accordingly.
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Obtain a state tax ID number. Visit the Illinois Department of Revenue site to download forms and instructions. When registering, remember to ask whether you qualify for a resale number, which allows you to buy resale items without paying certain taxes.
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Register with the Illinois Department of Employment Security within 30 days of opening if you hire employees of any type. Visit the department's website to register online, or download Form UI-1 "Report to Determine Liability Under the Unemployment Insurance Act." Once registration is complete, you'll receive an Illinois unemployment account number. Assistance is available at the Employer Hotline at 800-247-4984.
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