Business Licensing for Illinois

How to Get a Business License in Illinois:

  • If you plan to hire at least one employee, contact the Internal Revenue Service to get a Federal Employer’s Identification Number, and to request your w-4, SS-4, Circular E and Publication 334 forms.
  • If you plan to operate as a sole proprietor then you will need to register your business entity with the county clerk. Find your county clerk’s contact information.
  • If you plan to operate as a corporation, limited partnership, limited liability partnership (LLP) then you will have to register with the Illinois Secretary of State’s Department of Business Services.
  • Visit the State of Illinois Licensing website to determine if you need a state license and/or local license.
  • Contact your city and county government for specific zoning, permitting, and licensing regulations.

Illinois State Sales Tax:

  • Illinois state sales tax is 6.25%.
    • Qualifying food, drugs, and medical appliances are taxed at 1%
    • See a list of exemptions.
    • Complete state tax information can be found here.
  • Some municipalities and counties have their own taxes in addition to the state tax. Contact your local government for the rates.

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