The state of Illinois is one of the most popular parts of Chicago and has a wide range of business opportunities for anyone looking to start a company. But before you can reap the rewards of a successful business, it’s important to understand the steps to take to have a business that adheres to the rules and regulations within the state. Here’s a guide on how to start your own business in Illinois.
Obtain a federal employer identification number (EIN)
You can start the motions for applying for an EIN number once you’re sure of which kind of business you want to start. This is a 9-digit number given to a business by the IRS for the purposes of taxation.
For an Illinois business, this means helping local tax authorities identify your company and streamlining the act of securing business credit cards and other similar things. Submitting an online application for EIN number in Illinois is crucial to get sorted sooner rather than later.
Naming and registering your business in Illinois
Naming your business is vital to forming a company that tells consumers what you offer and what to expect from your products and services. But while naming your company is essential, there’s also the matter of ensuring you’ve registered your business correctly and under the right structure.
If you’re forming a Limited Liability Company or LLC, you’ll need to include the term LLC in the name of your business. Also, in Illinois, even corporations must include the words “corporation,” “limited,” “incorporated,” or “company.”
For sole proprietorships, an Illinois business must operate under the legal surname of that sole proprietor. If a sole proprietor wishes to conduct business under another name, a DBA must be filed (also known as Doing Business As). Illinois businesses operating as partnerships must also file a DBA.
Don’t forget to ensure that the domain name of your business is available or that there’s at least one that works alongside your business name for the website to work well for your specific business needs.
Business permits and licenses
Illinois businesses need the following licenses and permits to be legally functioning business entities. For any Illinois business classed as a provider of goods and services that sales tax is applied, you’ll need to obtain a Certificate of Registration. This can be obtained online at the Illinois Department of Revenue.
For businesses selling alcoholic beverages, firearms, or tobacco, you may need additional licenses via particular state boards. And, of course, some states and cities require other local licensing documents before you can conduct business. Check Illinois government websites for more information.
Implementing the above steps helps you hone a business plan and obtain all necessary documentation to ensure a smooth launch. If you can keep these tips in mind and you have a strong understanding of your target audience, the sky is the limit for you!