Starting a Business in Illinois: Licenses, Registrations & Checklist

Illinois start-up checklist

Form your LLC or corporation with Illinois Secretary of State, Business Services. Official page
A trade name (DBA) is registered with the County clerk.

Register for state taxes with Illinois Department of Revenue. Official page
Business-level tax: Corporate income tax; Personal Property Replacement Tax on partnerships and S corporations.
Sales tax: get a Illinois Certificate of Registration (Retailers' Occupation Tax) from Illinois Department of Revenue before you sell taxable goods. Official page
Remote sellers must register once sales into the state pass $100,000 a year.
Local sales taxes are collected through the state return.
If you have employees, withhold Illinois income tax from wages and register for withholding. Official page

Register for unemployment insurance with Illinois Department of Employment Security. The 2026 taxable wage base is $14,250 per employee; experience-rated rates run from 0.2% to 6.5%. Official page
New employers start at 2.8%.
Workers' compensation through Illinois Workers' Compensation Commission and private insurers. Required when: 1 employee (even part-time)
Paid sick leave is required statewide from 1 employee.
Post the required labor notices at your workplace. Official page

File Annual Report (LLCs, corporations and nonprofits): Before the first day of the anniversary month; fee $75.
(limited partnerships): Before the first day of the anniversary month; fee $100.
File LLP renewal statement (limited liability partnerships): Within the 60 days before the registration expires; registration lasts one year; fee varies.
State tax returns and payments (sales, withholding, unemployment) follow the schedule your agency assigns when you register.

Business filings and annual reports: Illinois Secretary of State, Business Services. Official page
Taxes: Illinois Department of Revenue. Official page
Unemployment insurance and labor rules: Illinois Department of Employment Security. Official page
Workers' compensation: Illinois Workers' Compensation Commission.
Real estate licensing: Illinois Department of Financial and Professional Regulation.
Alcohol licensing: Illinois Liquor Control Commission.
Child care licensing: Illinois Department of Children and Family Services.
Health facility licensing: Illinois Department of Public Health.

Municipal business license (City/village clerk): Chicago and many municipalities require business licenses (Chicago: BACP).
Cannabis: adult-use licensing, regulated by Illinois Department of Financial and Professional Regulation and Department of Agriculture.

Checked against official sources on October 13, 2026. Rules change; confirm each item with its agency.

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