Start a Small Business in Illinois

Small businesses are the backbone of our economy and it’s important to have the resources to succeed if you want to make your small business dreams a reality. The Illinois Department of Commerce & Economic Opportunity provided a guide to inform Illinoisans of various legal requirements and direct you to additional resources.

If you have any questions, please contact the First Stop Business Information Center at 1 (800) 252-2923 (TTY: 800-785-6055) or Submit a Question here.

Where Do I Start?

Feasibility Checklist: A feasibility checklist is a tool that’s used to evaluate the potential success of a new or existing business opportunity.

Business Plan: A business plan is vital in determining the credibility of a new business opportunity. It can be used as a management tool and may be required if financing is needed. It also demonstrates to prospective investors a well-defined course of action.

What Ownership Structure Choices Do I Have?

There are several ways to organize businesses in Illinois. They are:

Sole Proprietorships & General Partnerships

When a business name is different from the owner’s full legal name/names, 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 if they pay wages to one or more employees, or file any pension or excise tax returns, including those of alcohol, tobacco, or firearms. You can find the Employer’s Tax Guide and List of County Clerks at these respective links.

Limited Partnerships

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, and equipment leasing and family partnerships.

LP Forms

Limited Partnership Section
501 South Second St.
Room 357, Howlett Building
Springfield, IL, 62756
217-785-8960
TTY: 1-800-252-2904

Limited Partnership Section
17 North State St.
Room 1137
Chicago, IL, 60602
312-793-2872
TTY: 1-800-252-2904

Limited Liability Partnerships (LLP)

If organized as a Limited Liability Partnership under a specific section of the General Partnership Act, partners aren’t 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 Limited Liability Partnership.

LLP Forms

Limited Liability Partnership Section
Room 357, Howlett Building
Springfield, IL 62756
217-524-4952
TTY: 1-800-252-2904

Limited Liability Companies (LLC)

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. The LLC is well suited for every type of business venture, except banking and insurance, which are prohibited by Statute. Examples of acceptable businesses are: farming, agricultural services, mining, construction, manufacturing, transportation, wholesale and retail trade, investment companies, insurance agents, real estate brokers, all types of real estate ventures, hotels, personal and business services, automotive sales and services, amusement and recreation, health services, accounting, architecture and other professions, just to name a few.

LLC Forms

Limited Liability Company Section
Room 351, Howlett Building
Springfield, IL, 62756
217-524-8008
TTY: 1-800-252-2904

“S” Corporations

Electing S Corporation status is 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. Get online or contact:

Corporation Forms

Business Services
Room 328, Howlett Building
Springfield, IL, 62756
217-782-6961
TTY: 1-800-252-2904

Business Services
17 North State St., Room 1137
Chicago, IL, 60602
312-793-3380
TTY: 1-800-252-2904

Find the Secretary of State Database of Registered Corporate Names here.

“C” Corporations

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
Room 328, Howlett Building
Springfield, IL, 62756
217-782-6961
TTY: 1-800-252-2904

Business Services
17 North State St., Room 1137
Chicago, IL, 60602
312-793-3380
TTY: 1-800-252-2904

Before selecting a business type, consult an attorney or accountant for assistance in determining which one is best for your business.

Where Do I Register a Business?

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 online here.

Business Tax Registration
Internal Revenue Service (IRS): The IRS has information such as a checklist for a new business and selecting a 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. For more information, contact: Internal Revenue Service

To obtain IRS Forms:

Forms Distribution Center
PO Box 8902
Bloomington, IL, 61702-8902
1-800-829-3676
TTY: 1-800-829-4059

Illinois Department of Revenue (IDOR): In Illinois, most businesses are required to be registered and/or licensed by the IDOR. If you plan to hire employees, buy or sell products wholesale or retail, or manufacture goods, you must register with the IDOR. To obtain information, contact:

Illinois Department of Revenue
Central Registration Division
PO Box 19030
Springfield, IL, 62794-9030
1-800-732-8866
TTY: 1-800-544-5304

Local Tax Registration and 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 and Professional Regulation (IDFPR) is the main licensing agency for the State of Illinois for most professions. Individuals must be licensed prior to conducting business as one of the listed professions. Find IDFPR’s Occupational Listing online here.

Where can I go for help?

The Office of Entrepreneurship, Innovation, and Technology has programs to assist Illinois small businesses. The First Stop Business Information Center offers business specialists to help guide you through applicable regulatory requirements as well as connect you with available resources for your business. The Small Business Environmental assistance program helps small businesses understand and comply with environmental requirements and the Regulatory Flexibility Program reviews rules proposed by state agencies for potential negative impacts to Illinois Small Businesses.

The Illinois Small Business Development Center Network is made up of Small Business Development Centers (SBDC), Procurement Technical Assistance Centers (PTAC), SBDC – International Trade Centers, training courses, and free one-on-one business advising are offered through the network.

Small Business Administration (SBA)

The SBA offers educational, financial and training programs, advisory services, and publications free or at a nominal fee. The agency also offers specialized programs for women business owners, minorities, veterans, international trade and rural development. For more information, contact the SBA at:

Small Business Administration (SBA)
500 W. Madison
Room 1250
Chicago, IL, 60661
312-353-4528
TTY: 312-886-5108

Small Business Administration (SBA)
330 Ginger Creek Dr., #B
Springfield, IL, 62711
217-793-5020

SCORE – Counselors to America’s Small Businesses

SCORE and the SBA conduct seminars throughout Illinois on starting and running a business, as well as provide individual counseling.

SCORE – Counselors To America’s Small Businesses – For more information on SCORE, call Voice: 312-353-7724 and TTY: 312-886-5108.

Illinois Small Business Environmental Assistance Program

The Illinois Small Business Environmental Assistance Program provides companies with assistance in determining permit requirements under the Illinois Environmental Protection and Clean Air Acts. This service is non-regulatory and confidential.

Small Business Tax Workshops

The Small Business Tax Workshops are conducted by the Internal Revenue Service, Illinois Department of Revenue, Illinois Department of Employment Security, Social Security Administration, and the Small Business Administration. These workshops provide federal and state tax information for new and existing small business owners. For more information, please contact the local Small Business Coordinator at:

Internal Revenue Service
Small Business Coordinator
230 South Dearborn St.
Chicago, IL, 60604
312-886-7802
TTY: 1-800-829-4059
https://www.irs.gov/businesses/small-businesses-self-employed/small-business-tax-workshops-and-webinars

Illinois On-Site Safety and Health Consultation Program, IL Dept. of Labor

On-site Safety and Health Consultation is a federally funded OSHA program. Consultants will work with small to medium-size businesses to set up and maintain OSHA vetted safety programs.

To find additional information like What are my responsibilities as an employer? and How do I protect my invention, product or idea? You can visit the Illinois Department of Commerce & Economic Opportunity online here.

How to Support a Small Business

If you aren’t starting a small business, but want to support local businesses, there are lots of ways to do so!

Illinois Made: Discover Local

It’s handmade, homemade, locally made, it’s Illinois made. Every crafted item carries a little bit of the place and people who make it. The Illinois Makers program celebrates the small business whose uniquely Illinoisan style and creativity set our locally made goods apart. View the Illinois Made guide online here.

Discover Illinois Made small businesses online here!