Here's what you need in Illinois
Official state business portal: First Stop Business Information Center. The state's Business Information Center has a step by step guide to starting a business in Illinois and answers questions by phone or online.
| What you need | Who issues it | Official fee | Links | Checked |
|---|---|---|---|---|
| General state business licenseWe have not yet found an official state page that says whether Illinois requires a general state business license. Many cities and counties issue their own business licenses, so check with yours. | Illinois Department of Commerce and Economic Opportunity | Not yet verifiedCheck with the agency | Source | Nov 7, 2026 |
| Form an LLCArticles of Organization. To form an LLC, file Articles of Organization with the Illinois Secretary of State. We could not open the Secretary of State's website, so the current filing fee is not yet checked. | Illinois Secretary of State, Business Services | Not yet verifiedCheck with the agency | Source | Nov 7, 2026 |
| Business name (DBA)Assumed name registration (county). Sole proprietors and general partnerships that use a name different from the owners' legal names must register it with their county clerk under the Assumed Name Act. | County clerk | Set by each county | Source | Nov 7, 2026 |
| Sales tax permitCertificate of Registration (Illinois Business Registration, Form REG-1). Register with the Illinois Department of Revenue online through MyTax Illinois before you start selling. If it applies to you, the department issues a Certificate of Registration and a tax number. | Illinois Department of Revenue | Fee not published.Ask the agency | Applyat mytax.illinois.govSource | Nov 7, 2026 |
| Unemployment insurance (once you hire)Unemployment insurance account. A new business with employees must register with IDES within 30 days of starting. You can register online through MyTax Illinois. | Illinois Department of Employment Security (IDES) | You pay tax on wages | Applyat mytax.illinois.govSource | Nov 7, 2026 |
| Federal tax ID (EIN)Employer Identification Number (EIN). You need an EIN if you have employees or pay certain federal taxes, and banks often ask for one. Apply online with the IRS and you get the number in minutes. | Internal Revenue Service (IRS) | Free | Applyat irs.govSource | Nov 7, 2026 |
Costs after you start
What an LLC in Illinois pays or files after it is formed.
| What you need | Who issues it | Official fee | Links | Checked |
|---|---|---|---|---|
| Annual Report (Form LLC-50.1)Every Illinois LLC files an annual report with the Secretary of State each year. The fee is not shown here because we could not open the official fee page; check it with the Secretary of State before you pay. | Illinois Secretary of State | Not yet verifiedCheck with the agency | Applyat ilsos.govSource | Nov 7, 2026 |
Licenses by type of business
State level licenses. Your city or county may add its own permits.
| What you need | Who issues it | Official fee | Links | Checked |
|---|---|---|---|---|
| Hair salon, barber shop or nail salonSalon/Shop Registration. Cosmetology, esthetics, hair braiding and nail salons and barber shops all use the same salon/shop registration with IDFPR. | Illinois Department of Financial and Professional Regulation (IDFPR) | $40 | Applyat online-dfpr.micropact.comSource | Nov 7, 2026 |
| Child care in your homeDay care home license. Since July 1, 2026, the Illinois Department of Early Childhood handles child care licensing. A day care home license is issued only for care in the home where you live, and the license itself is free. | Illinois Department of Early Childhood (IDEC) | Free | Source | Nov 7, 2026 |
| Selling alcohol (bar or restaurant)State liquor license. The Illinois Liquor Control Commission issues state liquor licenses. There are many license categories, so the right one depends on your business. | Illinois Liquor Control Commission (ILCC) | Fee not published.Ask the agency | Applyat ilcc.illinois.govSource | Nov 7, 2026 |
| General contractorContractor license (city or county). Most contractor licenses and registrations in Illinois are issued by cities and counties, not the state. Some specialized trades need a state license. | Your city or county | Fee not published.Ask the agency | Source | Nov 7, 2026 |
| Selling homemade food (cottage food)Cottage food operation registration. You can make many foods in your home kitchen and sell them directly to consumers, but not for resale or in stores. You must register with the local health department where you live. | Illinois Department of Public Health (you register with your local health department) | Fee not published.Ask the agency | Source | Nov 7, 2026 |
What is different in Illinois
- Where to file a business name (DBA): Sole proprietors and general partnerships that use a name different from the owners' legal names must register it with their county clerk under the Assumed Name Act.
- Contractor licensing in Illinois: Most contractor licenses and registrations in Illinois are issued by cities and counties, not the state. Some specialized trades need a state license.
- At $40, the salon or shop license fee is among the lowest: only 2 of 36 verified states charge less.
Steps to start a business in Illinois
Pick a structure and register it
Sole owners can start under their own name. To form an LLC, file the Articles of Organization with the Illinois Secretary of State, Business Services.
Get a free EIN
Apply on irs.gov. You need it to hire, and banks usually ask for it. Never pay a website for an EIN.
Register your business name
If you trade under a name that is not your legal name, file a DBA with the County clerk.
Register for sales tax
If you sell taxable goods or services, get your permit from the Illinois Department of Revenue before your first sale.
Get a state license for your type of business
Salons, child care, alcohol, building work and home food each have their own state rules. See the table above.
Check city and county permits
Ask about a local business license, zoning, health and building permits before you sign a lease.
Register as an employer when you hire
Open a state unemployment insurance tax account with the Illinois Department of Employment Security (IDES).
City and county permits
Cities and countys in Illinois can require their own business license, zoning approval, health permit or building permit. Rules change from place to place, so ask your city hall and county clerk before you sign a lease. Home businesses often need a home occupation permit.
In the biggest cities, ask these local governments:
- Chicago: the city, and Cook County. Business license (BACP) (chicago.gov), City of Chicago (chicago.gov)
City rules and fees are not in our guide yet.
Questions about business licenses in Illinois
Do I need a business license in Illinois?
We have not yet verified this on an official page. Check with the Illinois Department of Commerce and Economic Opportunity.
How much is an LLC in Illinois?
We have not yet verified this on an official page. Check with the Illinois Secretary of State, Business Services.
Does an LLC need a business license in Illinois?
Yes, if your type of business or your location requires one. Forming an LLC only registers your company with the state; it is not a license. An LLC in Illinois still needs any state license for its type of business and any local business license from its city or county.
Do I need a sales tax permit in Illinois?
Yes, if you sell taxable goods or services. Register with the Illinois Department of Revenue online through MyTax Illinois before you start selling. If it applies to you, the department issues a Certificate of Registration and a tax number.
How much is a DBA in Illinois?
Sole proprietors and general partnerships that use a name different from the owners' legal names must register it with their county clerk under the Assumed Name Act. Official fee: Set by each county.
Can I sell homemade food from home in Illinois?
You can make many foods in your home kitchen and sell them directly to consumers, but not for resale or in stores. You must register with the local health department where you live.
Do contractors need a state license in Illinois?
Most contractor licenses and registrations in Illinois are issued by cities and counties, not the state. Some specialized trades need a state license.
Do I need an EIN?
You need an EIN if you have employees or pay certain federal taxes, and banks often ask for one. Apply online with the IRS and you get the number in minutes. It is free: never pay a website for an EIN.
Sources
Every fact on this page comes from an official government page, checked on the date shown. Facts we could not confirm are marked Not yet verified and show no number. How we check.
- General state business license Illinois Department of Commerce and Economic Opportunity Not yet verified Checked Nov 7, 2026
- Form an LLC Illinois Secretary of State, Business Services Not yet verified Checked Nov 7, 2026
- Sales tax permit Illinois Department of Revenue Checked Nov 7, 2026
- Unemployment insurance (once you hire) Illinois Department of Employment Security (IDES) Checked Nov 7, 2026
- Hair salon, barber shop or nail salon Illinois Department of Financial and Professional Regulation (IDFPR) Checked Nov 7, 2026
- Child care in your home Illinois Department of Early Childhood (IDEC) Checked Nov 7, 2026
- Selling alcohol (bar or restaurant) Illinois Liquor Control Commission (ILCC) Checked Nov 7, 2026
- General contractor Your city or county Checked Nov 7, 2026
- Selling homemade food (cottage food) Illinois Department of Public Health (you register with your local health department) Checked Nov 7, 2026
- Annual Report (Form LLC-50.1) Illinois Secretary of State Not yet verified Checked Nov 7, 2026
- Federal tax ID (EIN) Internal Revenue Service (IRS) Checked Nov 7, 2026