Step by Step Guide

This guide will inform you of various legal requirements and direct you to additional resources. If
you have any questions contact the Business Information Center at 800.252.2923 (TTY:
800.785.6055) or Submit a Question and a staff member will assist you.

1. Where Do I Start?
2. What ownership structure choices do I have?
3. Where do I register a business?
4. What are my responsibilities as an employer?
5. How do I protect my invention, product or idea?
6. Where can I go for help?

Where Do I Start?
Feasibility Checklist
A feasibility checklist is a tool that is used to evaluate the potential success of a new or existing
business opportunity.
Business Plan
A business plan is vital in determining the credibility of a new business opportunity. It can be
used as a management tool and may be required if financing is needed. It also demonstrates to
prospective investors a well defined course of action.

 Business Feasibility Checklist (PDF)

 Business Plan (PDF)

What ownership structure choices do I have?

There are several ways to organize businesses in Illinois. They are Sole Proprietorships,
General and Limited Partnerships, Limited Liability Partnerships (LLP), Limited Liability
Companies (LLC), "S" Corporations and "C" Corporations. Before selecting a business type,
consult an attorney or accountant for assistance in determining which one is best for your
business.
Sole Proprietorship and General Partnership
When a business name is different from the owner(s) full legal name(s), the Illinois Assumed
Name Act requires sole proprietorships and general partnerships to register with their local
county clerk's office for registration under the Assumed Name Act. Sole proprietors must have a
Federal Employer Identification Number if they pay wages to one or more employees, or file any
pension or excise tax returns including those of alcohol, tobacco or firearms.

 Employer's Tax Guide

Limited Partnership
A Limited Partnership is an organization made up of a GENERAL PARTNER, who manages a
project, and limited partners, who invest money, but have limited liability and are not involved in
day-to-day management. Typical limited partnerships are in real estate, oil and gas, and
equipment leasing and family partnerships.

 LP Forms
o Limited Partnership Section
501 South Second Street
Room 357, Howlett Building
Springfield, Illinois 62756
217.785.8960
TTY: 1.800.252.2904
o Limited Partnership Section
17 North State Street
Room 1137
Chicago, Illinois 60602
312.793.2872
TTY: 1.800.252.2904

Limited Liability Company

A Limited Liability Company (LLC) is the non-corporate form of doing business that provides its
owners with limited liability, flow-through tax treatment and operating flexibility through
participation in management of the business. The LLC is well suited for every type of business
venture, except banking and insurance which are prohibited by Statute. Examples of acceptable
businesses are: farming, agricultural services, mining, construction, manufacturing,
transportation, wholesale and retail trade, investment companies, insurance agents, real estate
brokers, all types of real estate ventures, hotels, personal and business services, automotive
sales and services, amusement and recreation, health services, accounting, architecture and
other professions, just to name a few.

 LLC Forms
o Limited Liability Company Section
Room 351, Howlett Building
Springfield, Illinois 62756
217.524.8008
TTY: 1.800.252.2904

Limited Liability Partnership

If organized as a Limited Liability Partnership under a specific section of the General
Partnership Act, partners are not liable for the debts, obligations and liabilities of, or chargeable
to the partnership arising from negligence, wrongful acts, omissions, misconduct or malpractice
committed while the partnership is a Limited Liability Partnership.

 LLP Forms
o Limited Liability Partnership Section
Room 357, Howlett Building
Springfield, Illinois 62756
217.524.4952
TTY: 1.800.252.2904

"C" Corporation
A corporation is a distinct legal entity and is the most complex form of organization. A
corporation may sell shares of stock, which are certificates indicating ownership, to as many
people as is desirable. The shareholders then elect a board of directors, which elects a
president and other officers who run the company on a day-to-day basis. Among the
advantages of corporate formation are limited liability of the shareholder and ease of
transferring ownership. If the name of the business includes the word "Corporation,"
"Inc.","Incorporated" or "Corp.", then the business must be incorporated.

 Corporation Forms
o Business ServicesRoom 328 Howlett Building
Springfield, Illinois 62756
217.782.6961
TTY: 1.800.252.2904
o Business Services
17 North State St., Room 1137
Chicago, Illinois 60602
312.793.3380
TTY: 1.800.252.2904

"S" Corporation
Electing S Corporation status is an option that must be made through the Internal Revenue
Service (IRS) when starting a business. In general, an S Corporation passes through income
and expenses to its shareholders, who then report them on their own income tax returns. To
qualify for S Corp. status, a corporation must meet several requirements, one of which limits the
number of shareholders. Get online or contact:

 Corporation Forms
o Business Services
Room 328 Howlett Building
Springfield, Illinois 62756
217.782.6961
TTY: 1.800.252.2904
o Business Services
17 North State St., Room 1137
Chicago, Illinois 60602
 312.793.3380
TTY: 1.800.252.2904

Secretary of State Database of registered corporate names

Where do I register a business?

Registering A Business Name
When the business name is different from the owner’s full legal name(s), the "Assumed Name
Act" requires sole proprietorships and general partnerships to register the business name with
their county clerk's office.

 Find Your County Clerk

Business Tax Registration

Internal Revenue Service (IRS)
The Internal Revenue Service has information such as a checklist for a new business and
selecting a business structure. Learn about operating a business with employees, deductions
and credits, recordkeeping and accounting methods. Additional resources include the Small
Business Tax Calendar, Tax Topics for Businesses, and Frequently Asked Questions. For more
information contact:

 Internal Revenue Service

 To Obtain IRS Forms:
Forms Distribution Center
PO Box 8902
Bloomington, Illinois 61702-8902
1.800.829.3676
TTY: 1.800.829.4059

Illinois Department Of Revenue (IDOR)

In Illinois, most business are required to be registered and/or licensed by the IDOR. If you plan
to hire employees, buy or sell products wholesale or retail, or manufacture goods, you must
register with the IDOR. To obtain information contact:

 Illinois Department of Revenue

Central Registration Division
PO Box 19030
Springfield, Illinois 62794-9030
1.800.732.8866
TTY: 1-800-544-5304

Local Tax Registration and Requirements

Some municipalities and counties impose their own taxes in addition to the state and federal
taxes that most businesses are responsible for. New businesses should contact their local
revenue department to determine if additional taxes apply to their business activities. Many
communities restrict advertising, regulate pricing or require zoning permits. Contact your city or
county clerk for information on local restrictions.
Licenses And Permits Required By Law
The Illinois Department of Financial and Professional Regulation (IDFPR) is the main licensing
agency for the State of Illinois for most professions. Individuals must be licensed prior to
conducting business as one of the listed professions.

 IDFPR's Occupational Listing

What are my responsibilities as an employer?

Unemployment Insurance
Typically a business is required to make unemployment insurance contributions to the Illinois
Department of Employment Security (IDES) if they have: 1) employed one or more workers in
each of 20 or more calendar weeks; or 2) paid at least $1,500 in total wages during the calendar
quarter. IDES offers a New Employer Packet. To request this packet, contact:

 Department of Employment Security

Division of Unemployment Insurance
33 South State Street
Chicago, Illinois 60603
1.800.247.4984
TTY: 1.866.212.8831

Illinois Department of Financial and Professional Regulation

The Illinois Department of Financial & Professional Regulation (IDFPR) is the main licensing
agency for the State of Illinois. IDFPR provides an on-line database listing every individual
licensed with their agency.

Visit the IDFPR web site and click on "License Look-up" to learn if an individual is licensed in a
certain profession or determine if a licensed number is valid.
Anti-Discrimination Laws
The Equal Employment Opportunity Commission (EEOC) is responsible for the enforcement of
all anti-discrimination laws. These laws include: Title VII of the Civil Rights Act of 1964, Equal
Pay Act, Age Discrimination in Employment Act, Rehabilitation Act of 1973, Title I of the
Americans with Disabilities Act, and the Civil Rights Act of 1991. Business owners should
acquaint themselves with these laws because they affect the company's hiring practices. To
order information on these laws, contact:

 EEOC Publications Office

PO Box 12549
Cincinnati, Ohio 45212
1.800.669.3362
Fax: 513.489.8692
 TTY: 1.800.800.3302
Material Orders Only TTY: 1.800.669.6820
http://eeoc.gov/employers

Workers' Compensation Insurance

Under the Workers' Compensation and Workers' Occupational Diseases Acts, an employer is
required to provide insurance for accidental deaths, injuries and occupational diseases of
employees arising in the course of employment. Temporary workers who normally do not
receive company benefits are still provided workers' compensation. Insurance generally is
purchased through private companies. Companies can apply to the Workers' Compensation
Commission to become self-insured. To learn more, contact:

 Illinois Workers' Compensation Commission

100 West Randolph, 8-200
Chicago, Illinois 60601
Toll Free: 1.866.352.3033
312.814.6611
TTY: 312.814.6519

Employment Service/Labor Market Information

The Illinois Department of Employment Security can assist you with finding new employees.
Find out about labor market conditions and industry projections.

 https://illinoisjoblink.illinois.gov Finding New Employees

 http://www.ides.illinois.gov/Pages/Data_Statistics.aspx Data and Statistics

Wage Withholding for Child Support

The Illinois Department of Healthcare and Family Services is the Child Support Enforcement
Agency for the State of Illinois. If you (as an employer) are served a Notice of Withholding, you
are required by law to withhold a portion of an employee's income for payment of child support.
For more information, contact:

 Illinois Department of Healthcare and Family Services

Division of Child Support Enforcement
Employer Verification Unit
PO Box 19405
Springfield, Illinois 62794-9405
217.782.1380
TTY: 217.524.3148
In Cook County: 312.793.3289
TTY: 312.814.1580

Immigration Reform and Control

The Federal Immigration Reform and Control Act of 1986 requires every employer to keep on
file a form for every employee certifying that employee's identity and work eligibility. For further
Information contact:
 U.S. Citizenship and Immigration Services
219 South Dearborn
Chicago, Illinois 60604
312.353.7334
TTY: 1.800.767.1833

Required Posters for Illinois Employers

The Illinois Department of Labor's website has a listing of State and Federal posters employers
are required to display in the workplace. Visit their website
at http://www.illinois.gov/idol/Employers/Pages/posters.aspx for details on how to obtain each
poster.

How Do I Protect My invention, product or idea?

Trademarks, Patents and Copyrights
A trademark, servicemark or tradename is a word, name symbol, device or combination thereof,
adopted and used by a manufacturer, service provider or merchant to identify goods and
services in order to distinguish them from others. A patent gives legal recognition to the
inventor, creator or discoverer of a new product, procedure or composition of matter. You may
obtain a patent or federal trademark by fulfilling all the requirements of the U.S. Patent and
Trademark Office. For more information, contact:

 The Harold Washington Library Center

400 South State Street
Chicago, Illinois 60605
312.747.4450
TTY: 312.747.4499

State trademarks, servicemarks and tradenames can be obtained through:

 The Secretary of State

Business Services
Trademark Division
Room 330 Howlett Office Building
Springfield, Illinois 62756
217.524.0400

A copyright is a form of protection provided to an author of original works including literary,

dramatic, musical, artistic, sound recordings and certain other intellectual works.

 The Copyright Office

Library of Congress
Washington, D.C. 20559
202.707.3000
TTY: 202.707.6737
Where can I go for help?
The Illinois Small Business Development Center Network is made up of Small Business
Development Centers (SBDC), Procurement Technical Assistance Centers (PTAC), SBDC -
International Trade Centers, Small Business Environmental Assistance Program (SBEAP) and
the Business Information Center. Training courses and free one-on-one business advising are
offered through the network.
Small Business Administration (SBA)
The SBA offers educational, financial and training programs, advisory services, and publications
free or at a nominal fee. The agency also offers specialized programs for women business
owners, minorities, veterans, international trade and rural development. For more information
contact the SBA at:

 Small Business Administration (SBA)

500 W. Madison
Room 1250
Chicago, IL 60661
312.353.4528
TTY: 312.886.5108
 Small Business Administration (SBA)
511 W. Capitol Ave.
Suite 302
Springfield, IL 62704
217.492.4416
TTY: 217.492.4418

SCORE - Counselors To America's Small Businesses

SCORE and the SBA conduct seminars throughout Illinois on starting and running a business,
as well as provide individual counseling.

 SCORE - Counselors To America's Small Businesses For more information on SCORE, call
Voice: 312.353.7724 and TTY: 312.886.5108

Illinois Small Business Environmental Assistance Program

The Illinois Small Business Environmental Assistance Program provides companies with
assistance in determining permit requirements under the Illinois Environmental Protection and
Clean Air Acts. This service is non-regulatory and confidential.

 Illinois Small Business Environmental Assistance Program

Small Business Tax Workshops

The Small Business Tax Workshops are conducted by the Internal Revenue Service, Illinois
Department of Revenue, Illinois Department of Employment Security, Social Security
Administration and the Small Business Administration. These workshops provide federal and
state tax information for new and existing small business owners. For more information contact
the local Small Business Coordinator at:

 Internal Revenue Service

Small Business Coordinator
230 South Dearborn St.
Chicago, Illinois 60604
312.886.7802
TTY: 1.800.829.4059
https://www.irs.gov/businesses/small-businesses-self-employed/small-business-tax-
workshops-and-webinars

For any questions or concerns regarding your business or the contents of this web page, please
contact the Business Information Center at 1.800.252.2923 or Submit a Question.
TTY: 1.800.785.6055

Source: https://www2.illinois.gov/dceo/SmallBizAssistance/BeginHere/pages/stepbystepguide.aspx