Illinois Business Startup Checklist

✅ Step 1: Plan Your Business

• Choose a business idea and research demand

• Write a business plan (products, pricing, funding needs, marketing)

  
  

✅ Step 2: Choose Your Business Structure

• Sole Proprietorship, Partnership, LLC, or Corporation

• Many small businesses choose an LLC for liability protection

  
  

✅ Step 3: Register Your Business

• Pick a business name and check availability with the Illinois Secretary of State

• Register your entity (LLC or Corporation) through the Secretary of State’s office

  
  

✅ Step 4: Get an EIN (Employer Identification Number)

• Apply online through the IRS (free)

• Needed for taxes, employees, and opening a business bank account

  
  

✅ Step 5: Register for Illinois Taxes

• Register with the Illinois Department of Revenue (IDOR) for state sales tax, use tax, or payroll taxes

• If selling goods: apply for a Sales Tax Permit

  
  

✅ Step 6: Obtain Local Licenses & Permits

• Check city or county requirements for business licenses

• Special permits may be required for food, alcohol, childcare, etc.

  
  

✅ Step 7: Open a Business Bank Account

• Separate personal and business finances

• Helps build business credit and makes bookkeeping easier

  
  

✅ Step 8: Get Business Insurance

• General liability insurance is recommended

• Workers’ comp required if you have employees

  
  

✅ Step 9: Set Up Accounting & Recordkeeping

• Choose bookkeeping software or work with a local accountant

• Keep records of income, expenses, and receipts for taxes

  
  

✅ Step 10: Promote Your Business

• Build a simple website (or Facebook page to start)

• Join your local Chamber of Commerce

• Network, attend events, and spread the word

  
  

✨ Tip for Illinois Entrepreneurs: Check for grants, loans, and support through the Illinois Small Business Development Center (SBDC) and your local Chamber of Commerce.