Starting a Business in Chicago: Licenses, Registrations & Checklist
A step-by-step plan to open a business in Chicago: what to file first, what depends on what, and which permits come before opening day. Change the business details to fit yours.
Permits and registrations specific to Chicago, IL
- Municipal business license — Chicago, Cook County, Illinois · City/village clerk: Chicago / Cook County (city)
- Obtain certificate of occupancy for premises in Chicago · Chicago (Cook County) building department (city)
- Obtain Chicago business license · Chicago Department of Business Affairs and Consumer Protection (BACP) (city)
- Form the business: Illinois Secretary of State, Business Services
- Register for state taxes: Illinois Department of Revenue
- Register as an employer: Illinois Department of Employment Security
Startup sequence and prerequisites in Chicago
Based on your selections, this plan has 10 steps. What you file first decides what you can do next: later registrations and licenses wait on the ones below.
Do these first
- Maintain a registered agent in Illinois
- File formation documents with the Illinois Secretary of State, Business Services
- Obtain an Employer Identification Number (EIN)
Then, once those are done
- Register for and file Illinois entity-level taxes — after: Obtain an Employer Identification Number (EIN)
- Municipal business license — Chicago, Cook County, Illinois — after: Obtain an Employer Identification Number (EIN)
- Obtain certificate of occupancy for premises in Chicago — after: Obtain an Employer Identification Number (EIN)
- Obtain Chicago business license — after: Obtain an Employer Identification Number (EIN)
Known charges: $75.00 per year.
Total incomplete: some fees unknown
9 of 10 steps have no fee amount in our data. The figures above count only the 1 step with a recorded fee. Check each agency's fee schedule.
Common questions about Chicago
The state licenses your industry through its own regulator, and the city and county add local permits. These are the authorities and local items on record for Chicago:
- 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 — Chicago, Cook County, Illinois (City/village clerk: Chicago / Cook County, city)
- Obtain certificate of occupancy for premises in Chicago (Chicago (Cook County) building department, city)
- Obtain Chicago business license (Chicago Department of Business Affairs and Consumer Protection (BACP), city)
With your current selections, the licenses and permits are: Municipal business license — Chicago, Cook County, Illinois; Obtain certificate of occupancy for premises in Chicago; Obtain Chicago business license. Change the industry above to see yours.
Sources: tax.illinois.gov, ilsos.gov, tax.illinois.gov, ides.illinois.gov
Formation comes first; tax, license and employer registrations wait on it. In your plan the first steps are:
- Maintain a registered agent in Illinois
- File formation documents with the Illinois Secretary of State, Business Services
- Obtain an Employer Identification Number (EIN)
Sources: tax.illinois.gov, ilsos.gov, tax.illinois.gov
Known government fees for your plan: $0.00 one-time and $75.00 per year.
Steps without a recorded fee are not counted, so check each agency's fee schedule before you budget.
Sources: tax.illinois.gov, ilsos.gov, tax.illinois.gov
In your plan for Chicago, requirements come from four levels. Illinois sets formation, state taxes and employer rules; the city and county add local licenses and taxes.
- Federal (2): Obtain an Employer Identification Number (EIN); File federal income tax return: Form 1040 with Schedule C
- State (4): Maintain a registered agent in Illinois; File Annual Report (Illinois); Register for and file Illinois entity-level taxes; File the annual unclaimed property holder report (Illinois)
- City (3): Municipal business license — Chicago, Cook County, Illinois; Obtain certificate of occupancy for premises in Chicago; Obtain Chicago business license
Sources: tax.illinois.gov, ilsos.gov, tax.illinois.gov
- Register for unemployment insurance with Illinois Department of Employment Security.
- Workers' compensation: Illinois Workers' Compensation Commission. Required when: 1 employee (even part-time)
- Register to withhold Illinois income tax from wages.
Sources: ides.illinois.gov, labor.illinois.gov, tax.illinois.gov