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Illinois · How-To Guide

How do I get a business license?

Illinois Secretary of State (entity formation) / Illinois Department of Revenue (sales tax / business registration) / City/Village for local business licenses
Step by Step

How to do it

  1. Determine your business structure: sole proprietor, LLC, corporation, partnership
  2. Register your business entity with the Illinois Secretary of State (for LLCs and corporations) at ilsos.gov or cyberdriveillinois.com - file online
  3. Obtain an EIN (Employer Identification Number) from the IRS at irs.gov if forming an entity, hiring employees, or operating as a partnership
  4. Register with the Illinois Department of Revenue (IDOR) for a Business Tax Registration Certificate - required if you will have employees, sell taxable goods/services, or operate in Illinois; register online at tax.illinois.gov (MyTax Illinois); includes registration for sales tax, withholding, and other applicable taxes
  5. Obtain a local business license from your city, village, or municipality - virtually all Illinois municipalities require a local business license; requirements and fees vary significantly
  6. Check for industry-specific state licenses: contractors, health professionals, real estate agents, cosmetologists, and many others require state professional licenses through the Illinois Department of Financial and Professional Regulation (IDFPR) - idfpr.illinois.gov
  7. Renew entity annual report with Secretary of State; renew Business Tax Registration Certificate (typically annually through MyTax Illinois); renew local license per municipality schedule
Details

What you need to know

Required Docs
  • Business name and type of activity
  • Illinois business address (physical location)
  • Entity formation documents if LLC or corporation
  • EIN or Social Security number
  • Industry-specific certifications if applicable
Fee
LLC formation: $150; corporation: $150; annual report: $75 (LLC), $75 (corporation); Business Tax Registration Certificate: varies; local business license: varies widely by municipality ($50-$500+) RENEWAL: Entity annual report due before the first day of the anniversary month; Business Tax Registration: annually or as required; local license: varies ONLINE OPTION: Yes - cyberdriveillinois.com or ilsos.gov (entity formation); tax.illinois.gov/MyTax Illinois (tax registration); idfpr.illinois.gov (professional licenses) WHERE TO GO: Illinois Secretary of State (entity); Illinois DOR (tax registration); IDFPR (professional licenses); City/Village Clerk (local business license)
Online Option
Yes - cyberdriveillinois.com or ilsos.gov (entity formation); tax.illinois.gov/MyTax Illinois (tax registration); idfpr.illinois.gov (professional licenses)
Where to Go
Illinois Secretary of State (entity); Illinois DOR (tax registration); IDFPR (professional licenses); City/Village Clerk (local business license)
County-specific variations apply

Illinois has 1,300+ municipalities each with their own business license requirements. County-level business licenses are not commonly required - the licensing is primarily city/village level. Chicago, Naperville, Rockford, Aurora, Springfield, Peoria each have their own business license portals and requirements. In unincorporated county areas, county business licenses may apply. Verify with your specific municipality before operating.

Illinois Notes

Important state-specific details

  • Illinois entity annual report: $75/year for LLCs and corporations; significantly higher than most states; due by the first day of the anniversary month.
  • Illinois sales tax: state rate 6.25%; local rates add 0.75%-4.75%; combined rates in Chicago area often 10%+.
  • IDFPR (Department of Financial and Professional Regulation): oversees 100+ licensed professions - idfpr.illinois.gov; covers real estate, cosmetology, medical professionals, contractors, and many others.
  • Illinois has a flat state income tax (4.95% for individuals; 9.5% for corporations including replacement tax).
  • DBA (Assumed Name): if operating under a name other than your legal name, file with the County Clerk in the county where your principal office is located; fee varies.
  • Illinois Medical Cannabis, liquor, and gambling require additional state licenses.
Official Source

State office contact

State Office
Illinois Secretary of State, Business Services - ilsos.gov/departments/business-services | (217) 782-6961; Illinois DOR - tax.illinois.gov | (800) 732-8866; IDFPR - idfpr.illinois.gov | (312) 814-4500