How to Start a Business in Chicago

Where Do I Register My Chicago Business?

Where you register your business will depend on whether you’re starting a formal (incorporated) business or an informal (unincorporated) business.

Informal businesses include sole proprietorships and general partnerships. These types of business don’t need to register with the Secretary of State and have fewer regulations and fees than formal businesses, but they don’t offer any liability protection for their owners.

Formal businesses include LLCs, corporations, and limited partnerships (among others). Formal businesses offer liability protection which can protect the owners’ personal assets if the business is sued or goes into debt. The most popular formal business structure for small businesses is the LLC, which offers strong liability protection along with flexible tax and management options.

Registering with the Secretary of State

To form an LLC or corporation, you’ll need to file paperwork with the Illinois Secretary of State and pay a $150 filing fee. Before you file, you need to appoint an Illinois registered agent. This is the person (or registered agent service) designated to accept legal mail on behalf of your business. They must have a physical Illinois address and be available during normal business hours to receive service of process in person.

You can register your company online via the Illinois Secretary of State website, or by submitting the paper form to the Illinois Secretary of State, Department of Business Services by mail or in person.

The paperwork you submit depends on the type of entity you’re forming:

LLCs: Articles of Organization
Corporations: Articles of Incorporation

NOTE: If filing by mail, you must submit the form in duplicate.

Bored of paperwork? Hire us to register your company.

Registering with the Cook County Clerk

Sole proprietors and general partnerships in Chicago don’t need to file with the Secretary of State. But if they want to use a business name other than the name(s) of the owner(s), they need to file an Assumed Name Certificate with the Cook County Clerk. An assumed name (also called a DBA) is any name a business uses that isn’t the legal business name.

You can file an assumed name online with the Cook County Clerk. There’s a $50 filing fee. You’ll also need to post a legal notice of your assumed name in a local newspaper. (You’ll receive instructions for posting your legal notice after you submit your filing.)

NOTE: Formal businesses like LLCs and corporations can also register an assumed name, but they need to file with the Illinois Secretary of State, NOT the county clerk’s office.

How Do I Get a Chicago Business License?

Most businesses operating in Chicago needs a City of Chicago Business License. The exceptions are certain businesses that are already required to be licensed by the State of Illinois. (The City of Chicago website lists some of these exceptions.) You can apply for a business license online or in person.

Where to apply

Online: Chicago Business Direct

In Person: Small Business Center
City Hall
121 North LaSalle Street, 8th Floor, Room 800
Chicago, IL 60602

NOTE: If applying in person, you’ll need to complete a pre-application form called a Chicago Business Information Sheet.

You’ll need a separate license for each business location, and the fees will vary based on the type of business you’re starting. Typically, you can expect to pay at least $250 for a Chicago business license.

Zoning review and inspections

Before your license is issued, the city will perform a zoning review to make sure your location’s zoning designation allows your business activity.

Depending on your type of business, additional inspections may be required before you get your business license. For example, Chicago restaurants need to be inspected by the Department of Public Health’s Food Protection Division.

What Are the Tax Requirements for Chicago Businesses?

Your specific tax requirements will depend on your industry and business structure. Business taxes can be complicated, so it’s a good idea to consult a business lawyer or CPA.

Chicago tax requirements

Depending on your industry, you may need to file tax returns with the City of Chicago. You can pay and file Chicago taxes through Chicago Business Direct. First you need to create a user profile. NOTE: If you applied for your Chicago business license online, you’ll already have a user profile.

State tax requirements

Most businesses in Illinois also need to register for state taxes. You can register online at MyTaxIllinois. Chicago’s sales tax is 10.25% (including state, county, and city tax).

C-corporations in Chicago are subject to Illinois’s corporate income tax (9.5%) as well as Illinois franchise tax.

Starting a Business in Chicago FAQ