What Licenses Do You Need to Start a Business in Chicago, Illinois?

In order to start a business in Chicago, Illinois, you need a business license from the city. As explained by the City of Chicago Department of Business Affairs & Consumer Protection, there are other requirements depending on the legal structure of your business. And the type of business you operate determines the specific type of business license you need in the City of Chicago.

If your business is set up as a limited partnership, limited liability partnership, limited liability company, or corporation, you need to register the entity with the Illinois Secretary of State. You can do this online, by mail, or in person. If you set up a legal entity, you will also need a federal employer identification number, which you can request from the IRS.

If you operate your business as a sole proprietorship or general partnership and use an assumed name, you need to obtain an Assumed Name Certificate from Cook County Clerk's office. You can also do this online, by mail, or in person.

If you plan to hire employees, buy or sell products either wholesale or retail, or manufacture goods, you need to obtain an Illinois Department of Revenue Account ID Number. This applies whether your business is set up as a sole proprietorship or a legal entity. You can do this online by using the Illinois e Services Business Registration. You could also register in person or by mail, filing Form REG-1.

There are various types of business licenses in Chicago. You can find specific information under Business License Types on the City of Chicago website, with links to the applicable sections of the Chicago Municipal Code, and under Business License Fact Sheets.

You can apply for a business license in Chicago online. You could also apply in person or complete a Business Information Sheet. You will need to provide general information on the business, a description of your business activity, and information on the owners and officers. If your business is set up as a legal entity, you must provide the file number you receive when you register with the Illinois Secretary of State, your employer identification number, if applicable, and the Illinois Department of Revenue Account ID Number. License fees vary depending on the type of business and have to be renewed, for example every two years.

Depending on the type of business, a zoning classification review may have to be completed by the Department of Housing and Economic Development. And there may be inspections involved, also depending on the type of business. As reported by the City of Chicago, in September, 2011, Chicago Mayor Emanuel announced a series of ordinance amendments to shorten the time needed to obtain a business license. These amendments are mainly to reduce unnecessary or redundant inspections.

Sources:

3 - Simple Steps To Obtain a Business License, City of Chicago Department of Business Affairs & Consumer Protection

Apply for a Business License Online, City of Chicago Department of Business Affairs & Consumer Protection

Apply for an Employer Identification Number (EIN) Online, IRS

Assumed Business Name Registration, Cook County Clerk

Business Information Sheet, City of Chicago Department of Business Affairs & Consumer Protection

Business License Fact Sheets, City of Chicago

Business License Types, City of Chicago

Business Services, Cyber Drive Illinois

Form REG-1, Illinois Business Registration Application